CLOSING BELL

Benchmark indices BSE Sensex and NSE Nifty snapped a four-day losing streak on Wednesday after Union Cabinet approved new civil aviation policy and merger of five associaties with SBI amid firm Asian markets. Sensex closed 330.63 points up at 26,726.34, while Nifty 50 index settled 97.75 points up at 8,206.60.

In the 50-share index, NTPC, State Bank of India, Larsen & Toubro, Power Grid and Maruti Suzuki gained between 2.60 per cent and 4.46 per cent. On the other hand, Bharti Infratel, Aurobindo Pharma, Adani Ports, Eicher Motors and Sun Pharma slid between 0.48 per cent and 4.16 per cent.

Traders also took some encouragement with NITI Aayog Vice-Chairman Arvind Panagariya’s statement that India’s economic growth will cross the 8 per cent mark this financial year on the back of good monsoon and pick up in manufacturing. He said the growth in the last quarter of the previous financial year touched 7.9 per cent because of uptick in manufacturing activity and improved performance of agriculture sector.

Some support also came with Cabinet clearing civil aviation policy where the government has decided to scrap a requirement that mandated airlines to have five years of domestic oeprations to be eligible to fly overseas. Stocks like SpiceJet, Jet Airways and InterGlobe Aviation flied high on the bourses. On the sectoral front, shares of public sector oil marketing companies (OMCs) edged higher, as the global crude prices fell to their three weeks low. Sugar stocks continued rallying for yet another day on hopes of improving financial health on the back of rising sugar prices.

Meanwhile, shares of State Bank of India gained over 3 per cent, while its subsidiaries State Bank of Travancore, State Bank of Bikaner and Jaipur, and State Bank of Mysore hit upper circuit after report that the Cabinet approved the merger of five associate banks with the country’s biggest lender.

European counters were trading with a gain of over a percent in early deals. Asian markets ended mostly in green on Wednesday after a succession of losses but fears of Britain will leave the European Union kept traders on edge.

3.24 pm: Emami Infrastructure was locked at upper circuit limit on back of Calcutta High Court approval for merger of company’s subsidiaries with itself. The scrip closed 20 per cent up at Rs 50.10.

2.58 pm: Sensex was trading 350.14 up at 26,745.85, while Nifty was trading 88.50 points up at 8,197.35. Asian equity markets ended mostly higher on Wednesday even as underlying sentiment remained cautious ahead of the Fed decision on interest rates due tonight and the Bank of Japan’s policy decision slated for Thursday.

2.43 pm: European shares rose and sterling gained against the dollar and yen on Wednesday as expectations of dovish words from the U.S. Federal Reserve soothed investors on edge over whether Britain will vote to leave the European Union. Sensex was trading 286.91 points up at 26,682.62. Nifty was trading 81.75 points up at 8,190.60.

2.34 pm: UPL has acquired 26 per cent stake in Weather Risk Management Services (WRMS) for cash consideration of about Rs 10 crore. The company has signed an agreement with WRMS, the promoters of WRMS and the subsidiary of WRMS, namely, INGEN Technologies (INGEN), whereby UPL will subscribe to 37,681 equity shares constituting 26 per cent share capital (on fully diluted basis) of WRMS. The formalities related to the acquisition will be completed within 90 days. Share of UPL were trading 0.76 per cent up at Rs 586.90. Sensex was up 256 points at 26652.

2.01 pm: The Union Cabinet approved the merger of SBI with its associates bank. Cheering the announcement, State Bank of Mysore hit upper circuit and surged 20 per cent to Rs 547.90. State Bank of Travancore was trading 18.14 per cent up at Rs 471.50 and State Bank of Bikaner and Jaipur was quoting at Rs 583.35, up 16.74 per cent against its previous close. Sensex was up 203 points at 26599. Nifty was trading 60.70 points at 8,169.55.

Also Read: Gold beats equities from 2008 financial crisis till Brexit worries; rises over 150 per cent

1.18 pm: Meanwhile, NSE’s volatilty index, the domestic equivalent of the VIX fear gauge rises as much as 2.6 per cent to its highest since May 16.

12.34 pm: In the 50-share index, Grasim, Tech Mahindra, State Bank of India, ITC and Power Grid were up between 0.19 per cent and 0.64 per cent. On the other hand, Bharti Infratel, Bosch, Coal India, HCL Technologies and HUL were down between 0.24 per cent and 0.48 per cent. Nifty was up 33.40 points, or 0.41 per cent, at 8142.25. Sensex was trading 126.22 points up at 26,521.93.

Also read: Aviation stocks, SBI subsidiaries among 17 buzzing stocks today’s trade

12.05 pm: Meanwhile, aviation stocks such as Jet Airways, InterGlobe Aviation and SpiceJet surged after Cabinet cleared aviation policy. Sensex was up 98 points at 26493. Nifty was trading 24.35 points up at 8133.20.

11.51 am: Shares of State Bank of India’s subsidiaries surged upto 16 per cent on Wednesday on reports that the Cabinet may approve merger of five associate banks and Mahila Bank with itself today. Read more

11.15 am: Kiri Industries is expecting its revenue to grow by 25-30 per cent to around Rs 1,300 crore in FY17 and about Rs 1,500-1,600 crore in FY18. The company’s topline saw a double-digit growth in FY16. The company derives fifty per cent of its sales from exports where Asia contributes a major chunk. Shares of Kiri Industries were trading 5.51 per cent up at Rs 377.

10.48 am: Sensex was up 87 points at 26,482. Buying in capital goods, realty, power and oil & gas stocks positively impacted the trading sentiment.

9.55 am: The rupee appreciated 8 paise to 67.19 against the US dollar in early trade on fresh selling of the American unit by exporters.

9.38 am: As per provisional figures, foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) sold shares worth net Rs 113.36 crore on June 14, 2016. Domestic institutional investors sold shares worth Rs 32.27 crore on that day.

Read more: PNB, Unitech, Godrej Properties among 11 stocks in focus today

9.24 am: DCM Shriram has commissioned 420 TPD of additional Chlor-Alkali capacity at its Unit Shriram Alkali and Chemicals, Bharuch (Gujarat) as a first phase of its expansion project. The balance Chlor-Alkali capacity and the Power expansion project will be commissioned in phases by September / October 2016. Shares of DCM Shriram were trading 2 per cent up at Rs 208.

9.15 am: The BSE Sensex opened 105.08 points up at 26500.79, while Nifty index opened 30.55 points up at 8,139. Punjab National Bank was trading 1.40 per cent up at Rs 90.75 in the early trade.

9.10 am:  Punjab National Bank (PNB), the nation’s second biggest state-run lender, on Tuesday declared a list of 913 wilful defaulters, including Kingfisher Airlines and NAFED, with total outstanding dues of Rs 11,486 crore. PNB has added eight defaulters to its February list to take the number of wilful defaulters to 913 as on March 31, 2016.

8.08 am: Benchmark indices BSE Sensex and NSE Nifty are likely to open on a flat-to-cautious note on Wednesday tracking SGX Nifty and mixed global cues. At 7.47 am (IST), SGX Nifty was up 6.50 points at 8,124.

Asian peers, Hang Seng was down 34.36 points, or 0.16 per cent, at 20,354 in the morning trade. Nikkei and Shanghai were up by 51.12 points and 13.58 points at 15,913.01 and 2,856.21, respectively.

On Wall Street, S&P 500 Index hit a three-week low to end at 2,075.32 on Tuesday, down 0.18 per cent, in its fourth consecutive drop, led by a 1.45 per cent fall in financial shares .

Domestic equities fell for a fourth straight session as they ended marginally lower on Tuesday as wholesale inflation hardened in May while the US Federal Reserve meet and Brexit referendum kept investors on sidelines. The 50-issue NSE Nifty after hovering between 8,134.95 and 8,069.50 settled the day 1.75 points or 0.02 per cent down at 8108.85.

The benchmark BSE Sensex after opening in positive terrain at 26,482.50 advanced to the day’s high of 26,485.45 on value-buying in recently battered bluechips. However, higher levels could not be sustained as investors cut positions at every rise and dragged down the index to 26,395.71, a minor fall of 1.06 points.

Crude oil futures extending the fall for the fourth straight session fell to near three weeks low on Tuesday on rising Brexit fears. Traders continued to closely monitor poll results in the UK, which increasingly show a British public shifting their support to the ‘Leave,’ campaign, ahead of next week’s referendum. A number of major oil companies have also issued stark warnings of the ramifications that could ensue from a UK departure from the EU. Meanwhile, traders were eyeing the release of the American Petroleum Institute’s weekly inventory report, for further indications of the supply-demand imbalance in domestic energy markets.

Benchmark crude oil futures for July delivery declined by $0.39 or 0.82 percent to $48.49 a barrel after trading in a range of $48.02 and $48.69 a barrel on the New York Mercantile Exchange. In London, Brent crude for August delivery closed at $49.78, down $0.57 or 1.13 percent on the ICE.

(With agency inputs)