Market clocks decent gains
Key benchmark indices clocked decent gains in the week ended Friday, 9 September 2016 helped by a strong surge in the indices on the first trading session of the week. Indian stocks rose along with other emerging markets as prospects for a US interest-rate increase later this month remained subdued due to weak economic data in the US. Low US interest rates could support demand for emerging-market assets. The outcome of a monthly survey showing that August saw a solid rebound in the rate of expansion in Indian service sector business activity also aided sentiment.
The Sensex settled below the psychologically important 29,000 mark after early surge helped regain that mark during the week. Indices cut gains on profit taking as the week progressed. The market rose in two out of four sessions of the week. The stock market remained closed on Monday, 5 September 2016 on account of holiday due to Ganesh Chaturthi.
The barometer index, the S&P BSE Sensex, rose 265.14 points or 0.92% to settle at 28,797.25. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty gained 57.05 points or 0.64% to settle at 8,866.70.
The BSE Mid-Cap index rose 0.86%, underperforming the Sensex. The BSE Small-Cap index gained 1.71%, outperforming the Sensex.
Trading for the truncated week started on a strong note as key indices surged on Tuesday, 6 September 2016 as positive global stocks underpinned sentiment. The Sensex jumped 445.91 points or 1.56% to settle at 28,978.02, its highest closing level since 13 April 2015.
Key benchmark indices settled with small decline in a volatile trading session on Wednesday, 7 September 2016. The Sensex fell 51.66 points or 0.18% to settle at 28,926.36, its lowest closing level since 2 September 2016.
Stocks of pharma companies, two-wheeler makers and index heavyweights ITC and Reliance Industries (RIL) led the latest upmove on the domestic bourses on Thursday, 8 September 2016. The Sensex rose 118.92 points or 0.41% to settle at 29,045.28, its highest closing level since 13 April 2015.
Metal, auto sector stocks and index heavyweights ITC and HDFC led losses for key benchmark indices on Friday, 9 September 2016 as weakness in global stocks weighed on sentiment. The Sensex lost 248.03 points or 0.85% to settle at 28,797.25.
From the 30-share Sensex pack, 24 stocks rose and six fell.
Index heavyweight and cigarette major ITC declined 1.43%. Index heavyweight and housing finance major HDFC shed 1.89%.
Another index heavyweight Reliance Industries (RIL) gained 3.05%.
Bank stocks gained. The BSE Bankex rose 1.95%, outperforming the Sensex. State Bank of India (SBI) (up 3.79%), Axis Bank (up 2.34%), and HDFC Bank (up 0.47%) gained.
ICICI Bank rose 4.9%. The bank after market hours on Thursday, 8 September 2016, said that the proposed initial public offer (IPO) of its subsidiary, ICICI Prudential Life Insurance Company (ICICI Pru Life) has been approved by Registrar of Companies, Maharashtra on 8 September 2016. The offer will open for subscription on 19 September 2016 and close on 21 September 2016. The price band has been fixed at Rs 300-334 per equity share.
Auto stocks also rose. Hero MotoCorp (up 1.26%), Bajaj Auto (up 1.14%), Tata Motors (up 4.22%), and Maruti Suzuki India (up 4.7%) gained. The BSE Auto index rose 2.39%, outperforming the Sensex.
Mahindra & Mahindra rose 0.14%. The company said it has signed a memorandum of understanding (MoU) to enter into a strategic alliance with the shared transportation platform firm, Ola to empower 40,000 driver partners across India by 2018. Through this strategic alliance, they aim overall vehicle sales and financing of over $400 million or Rs 2500 crore. The announcement was made during market hours on Thursday, 8 September 2016.
TCS slumped 6.41%. The stock was the biggest loser from the Sensex pack. The company warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. TCS announced after market hours on Wednesday, 7 September 2016, that it intends to update investors on business trends in Q2 September 2016. Based on data at the end of August 2016, the company has characterized customer outlook as one marked by abundant caution, with some holding back of discretionary spending - particularly in the BFSI vertical in the United States - resulting in a sequential loss of momentum.
Infosys rose 0.48%. the company announced that it has entered into a joint venture (JV) agreement with Saudi Prerogative Company (SPC) in the Kingdom of Saudi Arabia to conduct IT services for customers located in the Kingdom of Saudi Arabia. Infosys holds 70% while the rest 30% will he held by SPC in this JV. Infosys' 70% in this JV is at a cash investment of $312,671 (SAR 1,172,501) by the company in the equity share capital of the proposed JV company. The agreement is subject to the approval of Saudi Arabian General Investment Authority (SAGIA). The announcement was made after market hours on Friday, 2 September 2016.
Wipro fell 0.56%. The BSE IT index fell 1.87%, underperforming the Sensex.
ONGC rose 6.51%. The company's net profit dropped 21.15% to Rs 4232.54 crore on 20.23% decline in total income to Rs 18737.18 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Wednesday, 7 September 2016.
Tata Steel (up 5.57%), Lupin (up 3.44%), Dr Reddy's Laboratories (up 2.25%) and Sun Pharmaceutical Industries (up 1.92%) were amongst the gainers from the Sensex pack.
Meanwhile, Urjit Patel assumed charge as the 24th governor of Reserve Bank of India (RBI), succeeding Raghuram Rajan whose three-year controversy-ridden tenure ended on Sunday, 4 September 2016. Patel has assumed charge effective from Sunday after serving as deputy governor since January 2013, RBI said.
On the macro front, the outcome of a monthly survey showed that August saw a solid rebound in the rate of expansion in Indian service sector business activity. Data released on 5 September 2016 showed that the seasonally adjusted Nikkei India Services Business Activity Index rose to 54.7 in August, up from 51.9 in July, posting its highest level for over three-and-a-half years. The headline index has now signalled expansion in each of the past 14 months. With growth of manufacturing production also ticking higher, the seasonally adjusted Nikkei India Composite PMI Output Index climbed to a 42-month high of 54.6 in August, from 52.4 in July highlighting a stronger improvement in private sector economic activity.
On global front, data on Friday, 2 September 2016 showed US employment growth slowed more than expected in August after two straight months of robust gains. The Institute for Supply Management (ISM) on 6 September 2016 said its non-manufacturing purchasing manager index (PMI) index fell to six-year low of 51.4 in August from 55.5 in July.
The Sensex settled below the psychologically important 29,000 mark after early surge helped regain that mark during the week. Indices cut gains on profit taking as the week progressed. The market rose in two out of four sessions of the week. The stock market remained closed on Monday, 5 September 2016 on account of holiday due to Ganesh Chaturthi.
The barometer index, the S&P BSE Sensex, rose 265.14 points or 0.92% to settle at 28,797.25. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty gained 57.05 points or 0.64% to settle at 8,866.70.
The BSE Mid-Cap index rose 0.86%, underperforming the Sensex. The BSE Small-Cap index gained 1.71%, outperforming the Sensex.
Trading for the truncated week started on a strong note as key indices surged on Tuesday, 6 September 2016 as positive global stocks underpinned sentiment. The Sensex jumped 445.91 points or 1.56% to settle at 28,978.02, its highest closing level since 13 April 2015.
Key benchmark indices settled with small decline in a volatile trading session on Wednesday, 7 September 2016. The Sensex fell 51.66 points or 0.18% to settle at 28,926.36, its lowest closing level since 2 September 2016.
Stocks of pharma companies, two-wheeler makers and index heavyweights ITC and Reliance Industries (RIL) led the latest upmove on the domestic bourses on Thursday, 8 September 2016. The Sensex rose 118.92 points or 0.41% to settle at 29,045.28, its highest closing level since 13 April 2015.
Metal, auto sector stocks and index heavyweights ITC and HDFC led losses for key benchmark indices on Friday, 9 September 2016 as weakness in global stocks weighed on sentiment. The Sensex lost 248.03 points or 0.85% to settle at 28,797.25.
From the 30-share Sensex pack, 24 stocks rose and six fell.
Index heavyweight and cigarette major ITC declined 1.43%. Index heavyweight and housing finance major HDFC shed 1.89%.
Another index heavyweight Reliance Industries (RIL) gained 3.05%.
Bank stocks gained. The BSE Bankex rose 1.95%, outperforming the Sensex. State Bank of India (SBI) (up 3.79%), Axis Bank (up 2.34%), and HDFC Bank (up 0.47%) gained.
ICICI Bank rose 4.9%. The bank after market hours on Thursday, 8 September 2016, said that the proposed initial public offer (IPO) of its subsidiary, ICICI Prudential Life Insurance Company (ICICI Pru Life) has been approved by Registrar of Companies, Maharashtra on 8 September 2016. The offer will open for subscription on 19 September 2016 and close on 21 September 2016. The price band has been fixed at Rs 300-334 per equity share.
Auto stocks also rose. Hero MotoCorp (up 1.26%), Bajaj Auto (up 1.14%), Tata Motors (up 4.22%), and Maruti Suzuki India (up 4.7%) gained. The BSE Auto index rose 2.39%, outperforming the Sensex.
Mahindra & Mahindra rose 0.14%. The company said it has signed a memorandum of understanding (MoU) to enter into a strategic alliance with the shared transportation platform firm, Ola to empower 40,000 driver partners across India by 2018. Through this strategic alliance, they aim overall vehicle sales and financing of over $400 million or Rs 2500 crore. The announcement was made during market hours on Thursday, 8 September 2016.
TCS slumped 6.41%. The stock was the biggest loser from the Sensex pack. The company warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. TCS announced after market hours on Wednesday, 7 September 2016, that it intends to update investors on business trends in Q2 September 2016. Based on data at the end of August 2016, the company has characterized customer outlook as one marked by abundant caution, with some holding back of discretionary spending - particularly in the BFSI vertical in the United States - resulting in a sequential loss of momentum.
Infosys rose 0.48%. the company announced that it has entered into a joint venture (JV) agreement with Saudi Prerogative Company (SPC) in the Kingdom of Saudi Arabia to conduct IT services for customers located in the Kingdom of Saudi Arabia. Infosys holds 70% while the rest 30% will he held by SPC in this JV. Infosys' 70% in this JV is at a cash investment of $312,671 (SAR 1,172,501) by the company in the equity share capital of the proposed JV company. The agreement is subject to the approval of Saudi Arabian General Investment Authority (SAGIA). The announcement was made after market hours on Friday, 2 September 2016.
Wipro fell 0.56%. The BSE IT index fell 1.87%, underperforming the Sensex.
ONGC rose 6.51%. The company's net profit dropped 21.15% to Rs 4232.54 crore on 20.23% decline in total income to Rs 18737.18 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Wednesday, 7 September 2016.
Tata Steel (up 5.57%), Lupin (up 3.44%), Dr Reddy's Laboratories (up 2.25%) and Sun Pharmaceutical Industries (up 1.92%) were amongst the gainers from the Sensex pack.
Meanwhile, Urjit Patel assumed charge as the 24th governor of Reserve Bank of India (RBI), succeeding Raghuram Rajan whose three-year controversy-ridden tenure ended on Sunday, 4 September 2016. Patel has assumed charge effective from Sunday after serving as deputy governor since January 2013, RBI said.
On the macro front, the outcome of a monthly survey showed that August saw a solid rebound in the rate of expansion in Indian service sector business activity. Data released on 5 September 2016 showed that the seasonally adjusted Nikkei India Services Business Activity Index rose to 54.7 in August, up from 51.9 in July, posting its highest level for over three-and-a-half years. The headline index has now signalled expansion in each of the past 14 months. With growth of manufacturing production also ticking higher, the seasonally adjusted Nikkei India Composite PMI Output Index climbed to a 42-month high of 54.6 in August, from 52.4 in July highlighting a stronger improvement in private sector economic activity.
On global front, data on Friday, 2 September 2016 showed US employment growth slowed more than expected in August after two straight months of robust gains. The Institute for Supply Management (ISM) on 6 September 2016 said its non-manufacturing purchasing manager index (PMI) index fell to six-year low of 51.4 in August from 55.5 in July.
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