Friday 30 September 2016

Nifty ends above 8,600 mark

The key benchmark swung between gains and losses but finally closed higher today. After opening on a flat note indices remained under pressure and slipped lower in the first half. Finally, a late bout of buying across realty, oil & gas, metal, industrial, auto, and energy and utilities stocks lifted the benchmarks although the FMCG counters continued to trade soft.

Finally, the BSE Sensex ended with a gain of 38 points at 27,866. It opened at 27,808, touched an intra-day high of 27,955, and hit a low of 27,716.

The NSE Nifty closed with a gain of 20 points at 8,611. It opened at 8,582, hitting a high of 8,637 and low of 8,555.

Sentiments got some support on IMF Managing Director Christine Lagarde stating that India is embarking on significant reforms and will grow at more than 7%.

Among the 50 stocks of the Nifty, Aurobindo Pharma, Bank of Baroda, Grasim, M&M, GAIL, ONGC, Yes Bank and Tata Power were among the gainers, whereas Cipla, Tech Mahindra, Coal India, ITC, Ambuja Cement, Bharti Infratel and Dr.Reddy's were among the losers today.

The small-cap and mid-cap stocks rebounded even as the main indices extended losses after falling the most in 3-months following the nation’s attack on terrorists in Pakistan. In the broader market, the BSE Smallcap index gained over 1.9% while the BSE Midcap index was up 2%.

On the economy front, EPFO has decided to invest 10% of its annual incremental deposits or an estimated Rs.13,000 cr in the current fiscal in equity exchange traded funds (ETFs).

Market participants are anxiously awaiting the Monetary Policy Review on October 4, the first to be held under the newly appointed RBI Governor Urjit Patel and the first to be decided by a six-member panel.

The India VIX (Volatility) index was down 6.88% at 17.1800. Out of 1,421 stocks traded on the NSE, 1,186 declined and 215 advanced today.

The rupee was trading up by 24 paise at 66.61 per US dollar.

On the global front, Asian stocks fell today as the rally in oil prices subsided and growing worries about the European banking system hit financial shares.

China's Shanghai Composite index inched up 0.23% to 3,005.51 after a private gauge of Chinese factory activity pointed to a modest expansion in September, adding to recent signs of stability. Hong Kong’s Hang Seng and Japan’s Nikkei slipped over 1.5% each.

European stocks are trading lower. The FTSE 100 is down 0.89% while the CAC 40 and DAX have tumbled 1% each.

Cipla dropped 3.4% after the company said the US health regulator issued four observations across three facilities in Goa.

Liquor stocks rallied on the BSE after the Patna HC struck down the Bihar Prohibition of Liquor Act, calling it illegal. United Spirits closed above 6%. United Breweries zoomed 2%.

Alkem Laboratories Ltd tanked 8% after the company received 13 observations from the US Food and Drug Administration (USFDA) after the regulator inspected its manufacturing facility at Daman.

Yes Bank gained 1.9% on its plans to raise up to Rs.2,500 cr by issuing long-term bonds on a private placement basis.

NHPC zoomed 3% after the company signed a power purchase pact with the Government of Rajasthan as well as Inox for a 50 MW wind power project in the state.

Sintex Industries jumped 7.4% to Rs.78 after the company said its board has approved demerger of custom moulding business and prefab business from its two arms Sintex BAPL and Sintex Infra Projects, respectively.

A total of 23 stocks registered a fresh 52-week high in trades today, whereas 55 stocks touched a new 52-week low on the NSE.

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