Key benchmark indices logged strong gains led by index heavyweight Reliance Industries and bank stocks. The barometer index, the S&P BSE Sensex, surged 348.23 points or 1.09% to settle at 32,182.22. The Nifty 50 index surged 111.60 points or 1.12% to settle at 10,096.40. The Nifty attained 3-week closing high above the psychologically important 10,000 mark. The Sensex also settled at three-week high.
The Sensex ended above the the psychologically important 32,000 mark after breaching that level in mid-afternoon trade. The Nifty ended above the psychologically important 10,000 mark after breaching that level in morning trade.
Private bank stocks rose after good Q2 result from IndusInd Bank. PSU bank stocks saw mixed trend. Metal shares were in demand as copper prices rose in global commodity markets.
The Sensex surged 348.23 points or 1.09% to settle at 32,182.22, its highest closing level since 21 September 2017. The Sensex rose 375.04 points, or 1.18% at the day`s high of 32,209.03 in late trade. The index fell 20.32 points, or 0.06% at the day`s low of 31,813.67 in early trade.
The Nifty 50 index surged 111.60 points or 1.12% to settle at 10,096.40, its highest closing level since 21 September 2017. The Nifty rose 119.65 points, or 1.20% at the day`s high of 10,104.45 in late trade. The index fell 7.70 points, or 0.08% at the day`s low of 9,977.10 in early trade.
Among secondary barometers, the BSE Mid-Cap index rose 0.98%, underperforming the Sensex. The BSE Small-Cap index rose 1.15%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,706 shares rose and 962 shares fell. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 3618.56 crore, lower than turnover of Rs 4119.30 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Energy index (up 1.95%), the BSE FMCG index (up 1.18%), the BSE Realty index (up 1.49%) and the BSE Metal index (up 1.9%) outperformed the Sensex. The BSE Finance index (up 0.96%), the BSE IT index (up 0.68%), the BSE Utilities index (up 0.76%) and the BSE Capital Goods index (up 0.9%) underperformed the Sensex.
Index heavyweight Reliance Industries gained 3.82% to Rs 872.50.
Private bank stocks rose. HDFC Bank (up 1.11%), Yes Bank (up 0.69%), Kotak Mahindra Bank (up 1.37%), RBL Bank (up 1.22%) and Axis Bank (up 1.77%) rose.
IndusInd Bank gained 1.47% after the bank`s net profit rose 24.96% to Rs 880.10 crore on 21.08% rise in total income to Rs 5395.52 crore in Q2 September 2017 over Q2 September 2016. The result was announced during market hours today, 12 October 2017.
The bank`s gross non-performing assets (NPAs) rose to Rs 1345.28 crore as on 30 September 2017 as against Rs 1271.68 crore as on 30 June 2017 and Rs 899.01 crore as on 30 September 2016. The ratio of gross NPAs to gross advances stood at 1.08% as on 30 September 2017 as against 1.09% as on 30 June 2017 and 0.9% as on 30 September 2016.
The ratio of net NPAs to net advances stood at 0.44% as on 30 September 2017 as against 0.44% as on 30 June 2017 and 0.37% as on 30 September 2016. The bank`s provisions and contingencies rose 37.34% to Rs 293.75 crore in Q2 September 2017 over Q2 September 2016.
ICICI Bank rose 0.09%. The bank said that the Committee of Executive Directors of the bank, in the meeting held on 10 May 2017, had approved the offshore borrowing plan for the financial year 2017-18. The bank, under its GMTN programme, acting through its DIFC (Dubai) branch, tapped its existing 3.25% Fixed Rate Notes maturing September 2022, for an amount of $150 million on a private placement basis. With this, the outstanding amount under this Notes would be $650 million. The notes would be listed on the Singapore Stock Exchange. The announcement was made after market hours yesterday, 11 October 2017.
DCB Bank rose 1.34%. The bank announced the launch of 310th branch at Paralakhemundi, Odisha on 11 October 2017. The announcement was made after market hours yesterday, 11 October 2017.
PSU bank stocks saw mixed trend. Punjab National Bank (up 1.48%), Allahabad Bank (up 0.84%), Bank of Baroda (up 0.14%), IDBI Bank (up 0.77%) and Union Bank of India (up 0.64%) rose. State Bank of India (SBI) was unchanged at Rs 251.60. Dena Bank (down 1.31%), Canara Bank (down 0.26%), UCO Bank (down 1.01%) and Bank of India (down 1.56%) fell.
Metal shares were in demand as copper prices rose in global commodity markets. Jindal Steel & Power (up 6.63%), Hindalco Industries (up 5.74%), National Aluminium Company (up 5.24%), Steel Authority of India (up 2.28%), Bhushan Steel (up 2.34%), Vedanta (up 1.91%), Hindustan Zinc (up 1.81%)and Hindustan Copper (up 1.04%) edged higher. JSW Steel fell 0.31%.
Tata Steel rose 1.45%. The company announced expiry of share purchase agreement with Aryan Mining and Trading Corpn (AMTC) and companies in the Moorgate Industries Group to acquire 100% of Brahmani River Pellets. In the absence of clear approvals, shares could not in company`s opinion be transferred with a clear title. The announcement was made after market hours yesterday, 11 October 2017.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for December 2017 delivery was currently up 0.37% at $3.1070 per pound on the COMEX.
Drug major Sun Pharmaceutical Industries gained 2.58% after the company said that the US drug regulator cleared its Dadra facility based on responses to its inspection conducted in April this year. The announcement was made after market hours yesterday, 11 October 2017.
Sun Pharmaceutical Industries said that the inspection conducted by United States Food & Drug Administration (USFDA) at the company`s Dadra facility in April this year is closed. The company received a communication from the USFDA releasing a copy of the Establishment Inspection Report (EIR) in respect of the inspection based upon responses to the observation letter. EIR is issued to the entity when the USFDA concludes that an inspection is closed under Title 21 Section 20.64 (d) (3) of Code of Federal Regulation.
On 21 April 2017, the company had clarified on the USFDA inspection at the company`s Dadra facility wherein it had indicated that the company was then in the process of responding tohe Form-483 observation letter issued by the USFDA post the inspection completed on 13 April 2017. The company at that time had further stated that if there are any material developments related to this inspection, the company will promptly inform the stock exchanges.
Cadila Healthcare gained 2.01% after the company said that it received final approval from the US drug regulator to market Desvenlafaxine Extended-Release Tablets, 50 mg and 100 mg. The announcement was made during market hours today, 12 October 2017.
Cadila Healthcare said that the drug is used to treat major depression and will be manufactured at the group`s formulations manufacturing facility at Moraiya, Ahmedabad, Gujarat.
Majesco jumped 6.85% after the company said that IBM introduced the industry platform designed specifically for insurers built in collaboration with Metlife and Majesco. The announcement was made after market hours yesterday, 11 October 2017. IBM announced industry first insurance platform on the IBM cloud that aims to improve the processes and economics for new product development, underwriting and benefits delivery.
Built in collaboration with MetLife and Majesco, the IBM insurance platform will feature cognitive computing, data analytics and integration and security capabilities designed to help insurers expand access to their products and capture new customers.
Prakash Industries rose 4.76% after the company said it has secured additional coal linkages of 2.1 lakh tonnes per annum for the next 5 years in the recent auction. The announcement was made during market hours today, 12 October 2017.
Prakash Industries said it has secured additional coal linkages of 2.1 lakh tonnes per annum for the next 5 years in the recent coal linkage auction conducted by Coal India for sponge iron sector. The company is going to sign the fuel supply agreement (FSA) in the coming weeks and the supplies will commence from November 2017. With this additional linkage, the profitability will improve by over Rs 20 crore, taking total annual cost savings on total linkage quantity of 15.56 lakh tonnes per annum to over Rs 90 crore.
Overseas, most European shares were trading higher, with investors awaiting data and monitoring speeches from central bankers at the International Monetary Fund`s (IMF) annual meeting in Washington D.C.
Asian equities ended higher, taking cues from fresh overnight records set by key US indexes as the earnings season kicks off. Meanwhile, the US Federal Reserve signaled its confidence that the US economy was strong enough to support further rate increases.
US equities settled higher on Wednesday as gains in the utilities, technology and oil & gas sectors boosted shares. The Dow Jones Industrial Average gained 0.18% to hit a new all time high, while the S&P 500 index added 0.18%, and the Nasdaq Composite index climbed 0.25%.
Minutes from the US Federal Reserve`s policy-setting gathering in September indicated a desire to increase rates one additional time despite low inflation. Some Fed policy members expressed concerns about inflation running below its 2% annual target, while others worried that waiting for inflation to normalize policy could lead to an overheated market.
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