Sentiments were supported by continued gains in Asian shares as investors bet the US Federal Reserve would raise rates in December but proceed cautiously with any further tightening.
After rising over 216 points intraday on Friday, the benchmark BSE Sensex closed 26.57 points up at 25,868.49. Sentiments were supported by continued gains in Asian shares as investors bet the US Federal Reserve would raise rates in December but proceed cautiously with any further tightening. Nifty closed 13.80 points up at 7,856.55.
“Indices shed all the day’s gains on global geopolitical worries. Further, continued selling pressure by foreign portfolio investors post the FOMC minutes coupled with global tensions witnessed sharp sell-off in emerging markets,” Gaurav Jain, Director, Hem Securities said.
In the 50-share index, GAIL surged the most 9.59 per cent, followed by Wipro (2.33 per cent), Bank of Baroda (2.29 per cent), Ambuja Cements (2.20 per cent) and Dr Reddy’s (2.10 per cent). On the other hand, ITC, Sun Pharma, Hindalco, HCL Tech and Bosch declined 2.26 per cent, 2.21 per cent, 1.34 per cent, 1.22 per cent and 0.99 percent, respectively.
Among other gainers, GAIL rose 9.59 per cent and Petronet LNG rose 6.40 per cent, on reports of Qatar-based RasGas agreeing to modify its long-term contract with Petronet.
Shares of tea producers also rose, with McLeod Russel India advanced 2.59 percent and Tata Global Beverages gained 2.56 per cent, on expectations that shortage of the commodity from drought-hit South Africa would lift prices next year.
Shares of Jindal Steel and Power remained in action after the competition watchdog CCI clears the company of cartelisation allegations. The stock was seen up by more than 15.8 per cent intraday on NSE on the news and closed 7 per cent up at Rs 87.50. on Friday.
Sectorwise, the BSE Oil & Gas index, BSE Capital Goods index and BSE IT index jumped 2.05 per cent, 0.82 per cent and 0.69 per cent.
The BSE FMCG index and BSE Realty index slid 0.82 per cent and 0.26 per cent, respectively.
Consumer goods stocks were in news as the proposed pay hike for government workers could add at least Rs 1.02 lakh crore to federal spending in 2016, raising hope some of that money would be spent by the employees. Shares of Maruti Suzuki and Mahindra & Mahindra closed 1.84 per cent and 1.92 per cent up at Rs 4738.40 and Rs 1316.55.
European markets were trading mixed, UK’s FTSE 100 was up modestly by 1.68 points or 0.03 per cent to 6,331.61, while France’s CAC declined by 23 points or 0.47 per cent to 4,892.10 and Germany’s DAX was lower by 7 points or 0.06 per cent to 11,078.44.
Asian markets closed mostly higher on Friday, as investors continue to mull a likely interest rate hike by the US Federal Reserve in December.
Markets through the day
3.30 pm: The benchmark BSE Sensex closed 26.57 points up at 25,868.49. Nifty closed 13.80 points up at 7,856.55.
3.03 pm: Meanwhile, Fitch Ratings on Friday slashed the telecom sector outlook to ‘negative’ from ‘stable’ for 2016 and said the impending entry of Reliance Jio will increase the competition and pressurise credit profiles of top-four telcos.
2.37 pm: Shares of BL Kashyap and Sons were up 19.96 per cent at Rs 12.56. Sensex was up 131 points at 25,973. Nifty was up 44 points at 7,887. The BSE Oil and Gas index was up 2.19 per cent at 9171.31.
2.20 pm: European shares rose on Friday, approaching new three-month highs and set for its best week in a month, with Switzerland’s OC Oerlikon leading the market higher after a deal to sell its vacuum business.
1.59 pm: The Nifty 50 index was trading at 7,896, up 53.80 points or 0.69 per cent after trading in a range of 7,817.80 and 7,906.30. There were 41 stocks advancing against 9 stocks declining on the index.
The top gainers on Nifty were GAIL India up by 10.11 per cent, Bajaj Auto up by 2.85 per cent, Wipro up by 2.70 per cent, Bank of Baroda up by 2.65 per cent and Vedanta up by. 2.56 per cent. Othe flip side, Bosch were down by 2.10 per cent, Sun Pharma down by 1.58 per cent, HCL Tech down by 1.17 per cent, ITC down by 0.97 per cent and HDFC down by 0.59 per cent.
1.54 pm: Shares of Ramco Systems were up 0.65 per cent at Rs 772. The scrip jumped after the company informed bse that it has entered into a strategic partnership with GAINSystems — global leader in supply chain management and supply chain optimization, to offer world-class, fully-embedded and integrated solution to the Aviation industry. Through this partnership the company will embed GAINSystems’ Supply Chain Planning and Inventory Optimization solution to its Aviation offering, and offer it to both its new and existing customers of Aviation Series 5.
1.40 pm: Sensex was trading 146.67 points up at 25,988.59. NSE Nifty was trading 50.70 points at 7,893.45.
1.27 pm: Financial Technologies on Friday said it has concluded sale of its remaining 5 per cent stake in Indian Energy Exchange (IEX). Shares of the company was trading around 3 per cent up at Rs 103. Sensex was up 191 points at 26,033.
1.24 pm: The market breadth on BSE was positive, out of 2621 stocks traded, 1489 stocks advanced, while 918 stocks declined on the BSE.
1.21 pm: The broader markets are distinctly outperforming their larger peers. BSE Midcap and Smallcap indices were up 1.05 per cent and 0.95 per cent, respectively. Sensex and Nifty were up 192 points and 55.65 points at 26,034 and 7,898.
1.12 pm: Domestic equity markets continued to trade firm in the afternoon trade on the back of gains in frontline blue chip stocks such as oil and gas, IT, PSU, Bankex and Auto among others. Sentiment got up beat with Finance Minister Arun Jaitley vowing corruption-free governance, reasonable tax rates and non-discretionary allotment of natural resources to make it easier for companies to do business in India.
Appreciation in Indian rupee too aided the sentiment. The rupee strengthened by 10 paise to 66.07 against the dollar in early trade on Thursday at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.
1.00 pm: Sensex was up 178 points at 26,020. Britannia Industries (BIL), India’s leading Food Company, is reportedly planning to open a new Rs 65 crore research and development (R&D) centre in February to spur innovation. The newfound focus on innovation comes at a time when Britannia faces aggressive competition from its rivals in rural markets. Further, the company is also planning to enter the snack, chocolate and breakfast segments in the next six months. The share price of Britannia Industries were trading 1 per cent up in the afternoon trade.
12.20 pm: The seventh Central Pay Commission (CPC) has recommended a 23.6 per cent hike on Thursday (aggregating to ~US$ 15bn) in pay, allowances and pensions for central government employees. According to Religare, implementation of the CPC and state pay commissions would boost India’s consumption demand and GDP growth, benefitting consumer discretionary companies such as Bajaj Auto, Maruti Suzuki, Hero MotoCorp, Bata India and Voltas.
12.00 pm: Jubilant FoodWorks shares were trading 3.35 per cent up at Rs 1451.15 after the company, which operates Domino’s Pizza chain, teamed up with Hyderabad-based start-up Zippr for easier delivery. Sensex was trading 207.89 points up at 26,049.81. Similarly, Nifty was trading 61.25 points up at 7,904.
11.20 am: NSE Nifty crossed the psychological mark of 7,900 by surging 62.45 points to 7.905.20. BSE Sensex surged 202.53 points to trade at 26,044.45.
11.02 am: Sensex crossed its psychological level of 26,000, was up 159.08 points at 26,001. The broad-based NSE Nifty 50 index was up 47.40 points at 7,890.15.
11.00 am: Sensex was up 150.34 points at 25,992.26. Nifty was up 44 points at 7,886. Share price of Jindal Steel and Power was up 7.78 per cent at 87.95.
10.41 am: Share price of domestic gas companies Petronet LNG and GAIL (India) soared over 8 per cent in the morning trade on Friday as Ras Gas Company (RasGas) has agreed to modify sales and purchase agreement (SPA) with Petronet. Petronet has a 25-year deal with Qatar’s RasGas to buy 7.5 million tonnes of LNG annually.
10.15 am: Brokers said that apart from profit-booking in recent gainers, weak trend in other Asian markets following overnight fall at Wall Street, mainly influenced the sentiment.
10.05 am: The rupee strengthened by 10 paise to 66.08 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Sensex was down 36 points at 25,805.
9.42 am: Bosch shares declined as much as 3.64 per cent in the early trade on Friday on reports that the US authorities are investigating Bosch India’s parent German auto supplier Robert Bosch GmbH over its role in Volkswagen AG’s massive scheme to cheat US emission standards.
9.27 am: Shares of Jubilant Food Works, which operates Domino’s Pizza chain, jumped over 4 per cent in the early trade on Friday after the comany informed BSE that it has partnered with Hyderabad-based start-up Zippr to use latter’s coding method for delivering the orders instead of using consumers’ address. With this partnership, Domino’s consumers will be able to share their address during checkout on its online ordering platform. The share price of Jubilant Food Works were trading 4.41 per cent up at Rs 1,466.
9.15 am: The BSE Sensex and NSE Nifty opened on a flat note on Friday tracking global markets. Sensex opened 14.21 points up at 25,856, while Nifty opened 0.85 points down at 7841.90.
The US markets made a modestly lower closing in last session, the trade remained lackluster digesting the latest batch of US economic news, while there was modest drop in initial jobless claims, there was slightly bigger than expected increase in the index of leading economic indicators of Conference Board.
The Dow Jones industrial average on Thursday also fell 4.41 points, or 0.02 per cent, to 17,732.75. The Standard & Poor’s 500 index slipped 2.34 points, or 0.1 per cent, to 2,081.24. The Nasdaq composite lost 1.56 points, or 0.03 per cent, to 5,073.64.
The Baltic Index, which tracks rates for ships carrying dry bulk commodities and is viewed as a good reflection of the health of world trade, also fell to a record low, having fallen 58.8 per cent from its peak this year.
Back home, equity markets showed marvelous performance on Thursday, supported by government announced spate of policy reforms and hopes that US Fed’s rate hike will be gradual.
The 30-share Sensex ended up by 359.40 points, or 1.41 per cent, at 25,841.92 — its biggest single-day gain since October 5. The broad-based NSE Nifty reclaimed the 7,800-level before settling at 7,842.75, up 110.95 points, or 1.43 per cent.
(With inputs from agencies)