The benchmark BSE Sensex closed 169.57 points up at 26,128 on hopes of a likely breakthrough in the passage of the Constitutional Amendment Bill on goods and services tax in the current winter session of Parliament. (Photo: Reuters)
The benchmark BSE Sensex closed 169.57 points up at 26,128 on hopes of a likely breakthrough in the passage of the Constitutional Amendment Bill on goods and services tax (GST) in the current winter session of Parliament. Buying in index heavyweights also supported market sentiments. NSE Nifty closed 58.90 points up at 7,942.70.
In the 50-share index, Bank of Baroda, Hindalco, PNB, State Bank of India and Bosch gained between 2.40 per cent and 5.50 per cent. On the other hand, Idea Cellular, Tata Motors, Cairn India, Reliance Industries and Lupin slid between 0.70 per cent and 2.40 per cent.
The gains came after Prime Minister Narendra Modi’s office said Modi was due to meet opposition Congress party leader Sonia Gandhi on Friday evening to discuss the GST reform and other bills to be debated in the winter session of parliament.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The market extended Thursday’s gain and recaptured the important resistance level of 26,000. The investors are hopeful that GST will see the light of the day during this ongoing winter session of the parliament on account of the government’s willingness to negotiate. Additionally, investors are keenly watching the updates from RBI’s monetary policy and ECB’s policy meet next week. The Chinese market tumbled as the regulator banned some brokerages for infringement of trading rules.”
Among the sectoral indices on the Bombay Stock Exchange, the BSE Consumer Durables index fell the most — 1.38 per cent, followed by BSE Telecom index (down 0.60 per cent), BSE Enegy index (down 0.40 per cent. The BSE Bankex index and BSE Capital Goods index gained 1.86 per cent and 1.53 per cent, respectively.
Gains were led by financial stocks as investors bought beaten-down banking stocks. ICICI Bank gained 1.97 per cent, Axis Bank rose 1.23 percent and HDFC Bank added 1.34 per cent.
Shares of SKS Microfinance rose 7.23 per cent after the lender cut interest rates by 100 basis points to 19.75 percent.
The Asian markets closed mostly lower on Friday, led by late hour sell off in the Chinese market as brokerages tumbled after authorities launched probes for alleged violations of trading rules. Also, reports showed that profits earned by Chinese industrial companies fell 4.6 per cent year on year in October, sparking fresh concerns about an economic hard landing.
Japanese stocks too fell in thin trade, moving further away from the elusive 20,000 mark that has not been hit since mid-August. Data showed Japan’s core consumer prices fell for the third straight month, underscoring the fragile nature of the economy. The core consumer price index (CPI), which excludes fresh foods, fell by 0.1 per cent on-year last month as a result of sliding commodity prices. Poor economic data from China and regulators’ continued probes into China brokerages send Hong Kong stocks lower. Seoul shares ended lower amid lack of cues from Wall Street and rising tensions between Russia and Turkey.
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Markets through the day
3.30 pm: Sensex closed 169.57 points up at 26,128.20, while Nifty climbed 58.90 points to 7,942.70.
3.11 pm: Sensex was up 151 points at 26,110. Banking stocks were remained in demand today. G Chokkalingam, founder of Equinomics Research and Advisory said, “Basically some expectation from the Reserve Bank of India on rate cut and bargain buy supported banking stocks on Friday as they were continuously down for the last two months. I don’t expect rate cut before Fed meeting. RBI will wait for outcome of Fed meeting in December,” said, G Chokkalingam, founder of Equinomics Research and Advisory.
2.50 pm: Sensex was up 216 points at 26,175.
2.34 pm: Axis Bank share price was up 1.5 per cent at Rs 472.25. The scrip gained after the Reserve Bank of India (RBI) has granted in-principle nod to three entities including Axis Bank for setting up of a Trade Receivables Discounting System (TReDS). TReDS will allow SMEs to post their receivables on the system and get them financed. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. Sensex was up 183 points at 26,142. Nifty was up 62.30 points at 7,946.
2.21 pm: Shares of Simplex Castings gained around 3 per cent after the company informed BSE that it has received an order from Jindal Rail Infrastructure worth of Rs 10 crore approx which will be executed by the company in next two quarters. Jindal Rail Infrastructure (JRIL) is a 100 per cent subsidiary of Jindal ITF, set up for manufacture of Railway Rolling Stock. This order will be add-on to the performance of the company in financial year 2015-16.
2.03 pm: The Nifty PSU Bank index was up 3.07 per cent. Shares of Oriental Bank of Commerce were up 6.33 per cent, followed by Bank of Baroda (5.06 per cent), Union Bank (4.75 per cent) and IDBI Bank (4.39 per cent). The benchmark BSE Sensex was up 141 points at 26099.
1.40 pm: The RBI is expected to hold its policy interest rate at 6.75 pct next week, a Reuters poll of economists showed. According to a Bank of America Merrill Lynch report, the Reserve Bank is likely to hit the pause button in its policy review meeting on Tuesday, but a 25 basis point cut is likely in February.
1.17 pm: After getting a gap-up start, benchmark indices were trading in green in afternoon deals on hopes that the crucial goods and services tax (GST) bill will be passed in the winter sessions of Parliament. The GST bill has been passed in the Lok Sabha, but has been blocked in Rajya Sabha, where the Modi government lacks a majority. However, weakness in rupee weighed on the sentiments, as the Indian currency slipped to fresh two years low, on persistent bouts of month-end dollar demand from importers and banks. Sensex was up 111 points at 26070, while Nifty was up 34 points at 7,917.
1.02 pm: The aviation stocks were not showing any strength despite the Reserve Bank of India, relaxing the norms for aircraft and helicopter imports. It has said that banks can allow advance remittances for imports once the company has approval from aviation regulator DGCA. At present, both sensex and Nifty were trading above the crucial 26,000 and 7,900 levels respectively.
12.52 pm: Shares of Trident were trading 1.74 per cent up at Rs 55.55. The company has incorporated Trident Europe as wholly owned subsidiary in United Kingdom (UK). The wholly owned subsidiary will help the company to widen its reach in European markets, strengthening its marketing channels and will act as a catalyst to superior customer service in those markets. Sensex was up 75 points at 26,033. Nifty was up 28.60 points at 7,912.
12.41 pm: Sensex was trading 59.12 points up at 26,017.75. NSE Nifty was trading 22.30 points up at 7,906.10. BSE Capital Goods was up 1.04 per cent.
12.10 pm: China’s stock market benchmark falls 5 per cent after announcement brokers under investigation. The BSE Sensex turned cautious after this news and was trading 47.46 points up at 26,006.09. NSE Nifty was trading 21.60 points up at 7,905.40. BSE Bankex was trading 1.10%.
11.54 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 971.20 crore in index futures and options segments, as per Thursday’s data, November 26, 2015. FIIs were net sellers of index futures to the tune of Rs 307.25 crore and they bought index options worth Rs 1278.45 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 745.32 crore, while they bought stock options worth Rs 55.37 crore.
11.37 am: Realty, capital goods, auto, banking and metal sectoral indices of BSE were in the positive zone, gaining up to 1.70 per cent. Sensex was up 139.81 points at 26,102. Nifty was trading 46.90 points up at 7,930.70.
11.21 am: EID Parry India has informed that CRISIL has downgraded its Credit Rating to the Company’s Long Term Bank Facilities and Debt Programmes to CRISIL A+ /Stable from CRISIL AA-/ Stable. The rating on the company’s short term debt and bank loan facilities has been reaffirmed at CRISIL A1+. The share price of EID Parry was down 0.34 per cent at Rs 191.50.
11.00 am: Shares of Ashok Leyland were trading 2.45 per cent up at Rs 96.35. The scrip gained after the Hinduja Group flagship company informed stock exchanges that it has received an order worth $ 200 million (around Rs 1,331 crore) from the West African country Cote D’Ivoire for the supply 3,600 trucks and buses. The BSE Auto index was up 0.82 per cent at 19057.94.
10.56 am: Eros International Media has informed that the company has been assigned revised rating from Credit Analysis and Research (CARE). The company also informed BSE that the forthcoming magnum opus Bajirao Mastani, slated to release on December 18 worldwide, will also be released in Tamil and Telugu languages. The share price of Eros International was trading 1.90 per cent down at Rs 225.10.
10.30 am: Welspun Corp has won an order for supply of 216K MTs line pipes for an onshore project in Americas. With the addition of this order, current order book of the company has crossed 1040K MTs worth at Rs 6,400 crore. The share price of the company was trading 10.50 per cent up at Rs 107.85.
10.13 am: Godrej Properties were trading 1.71 per cent up at Rs 330. The realty major on Thursday announced its flagship project, The Trees. With an area of 34 acres, this is one of the largest real estate projects in Mumbai and is the first step towards the greater development opportunity that will unfold in Vikhroli. The Nifty Realty index was up 0.91 per cent at 172.10. Nifty 50 index was up 0.50 per cent at 7,923.
10.04 am: In the 30-share index, Tata Steel, ICICI Bank and Axis Bank were up 1.69 per cent, 1.68 per cent and 1.63 per cent, respectively. Sensex was up 146 points at 26,104. Nifty was up 42 points at 7,925.
9.39 am: The rupee continued its slide against the US dollar in early trade on Friday and lost another 23 paise to trade at 66.80 at the Interbank Foreign Exchange on increased month-end demand for the American currency from importers. Sensex was down 13.10 points, or 0.05 per cent, at 25,945. Nifty was down 1.85 points, or 0.02 per cent, at 7,881.95.
9.32 am: Shares of Fortis Healthcare was up 0.59 per cent at Rs 161.80. The share price of the company jumped after it informed BSE that its subsidiary Stellant Capital Advisory Services has entered into a Share Purchase Agreement (SPA) with RGAM Investment Advisors and other shareholders, to acquire 100 per cent equity stake in Religare Health Trust Trustee Manager.
9.24 am: Shares of Welspun Corp jumped over 8 per cent in the early trade after the company informed BSE that it has won an order for supply of @ 216 K MTs line pipes for an Onshore project in Americas. With the addition of this order, current order book of the company has crossed @ 1040 K MTs worth at Rs 6,400 crore. This is the fourth interest rate reduction, aggregating 4.8 per cent, announced by the Company since October 2014. The reductions are consistent with the company’s policy of passing on the cost advantages accruing from reduction in the cost of borrowing and economies of scale to its borrowers. The share price was trading 8.25 per cent up at Rs 105.65. Sensex was 33 points at 25,992.
9.17 am: Share price of SKS Microfinance was up 4.30 per cent at Rs 442.25. The company on Friday before market hours announced a 1 per cent reduction in the interest rate charged to borrowers from 20.75 per cent to 19.75 per cent with effect from December 7, 2015, for all future disbursals. With this, the Company becomes the first micro finance institution to charge a sub-20 per cent interest rate on its core Income Generating Loans (IGL) which are unsecured micro loans. Interest rate of 19.75 per cent is the lowest rate charged by any private sector MFI in the world. Sensex was up 48 points at 26,007. Nifty was up 24.10 points at 7,907.
9.15 am: The BSE Sensex and NSE Nifty opened on a flat note on Friday tracking Asian markets. Sensex opened 44.57 points, or 0.17 per cent, up at 26,003.20. Nifty opened 26.80 points up at 7910.60.
The US markets remained closed in last session unable to give any clues to the other global markets, while the European markets ended in green on stimulus hopes. The Asian markets though have made mostly a lower start with mixed data out of Japan, as the household spending for October slumped, while the closely watched national core consumer prices fell the expected 0.1% year-on-year for October.
All eyes will be on political developments now, though the real business of the winter session of the parliament will start from Monday but government is making all efforts for the passage of crucial bills and the Finance Minister Arun Jaitley has said that Prime Minister Narendra Modi is willing to speak to everyone to get the landmark Goods and Services Tax (GST) bill through.
Government is hopeful of passage of the GST bill in the winter session of parliament claiming 30 of the 32 parties have supported it.
The aviation stocks will be in action, as the Reserve Bank of India, relaxing the norms for aircraft and helicopter imports has said that banks can allow advance remittances for imports once the company has approval from aviation regulator DGCA.
Also, global airlines grouping International Air Transport Association has forecasted that India is likely to become the third largest aviation market in the world displacing the UK by 2026.
On the other hand, some somberness can be seen in the banking stocks, as the RBI in its report has stated that the deposit and credit growth of commercial banks declined to 10.2 per cent and 8.9 per cent in the September quarter of this fiscal.
Sensex on Thursday bounced back almost 183 points to close at over two-week high of 25,958.63 as investors lapped up realty, auto and metal stocks amid hopes of a breakthrough on GST Bill in Parliament and mixed cues from global markets. NSE Nifty settled 52.20 points up at 7,883.80.
(With inputs from agencies)
