Indices snap 2-day losing streak; Nifty shuts above 8550 mark

India Infoline News Service | Mumbai | September 22, 201616:14 IST

The Nifty closed above the crucial psychological barrier of 8,850-mark on the back of buying in banking, auto and utilities shares.

NSE Building
Domestic equity markets finished higher on Thursday, reversing two day’s losses as buying beaten down blue chip stocks supported market sentiment. However, the markets witnessed some profit booking near the day’s high, later on positive opening of the European markets helped markets regain strength.

The Nifty closed above the crucial psychological barrier of 8,850-mark on the back of buying in banking, auto and utilities shares.

Finally, the BSE Sensex ended with a gain of 266 points at 28,773. The BSE Sensex opened at 28,767, touched an intra-day high of 28,872 and low of 28,693.

The NSE Nifty closed with a gain of 90 points at 8,867. The NSE Nifty opened at 8,873 hitting a high of 8,893 and low of 8,837.

On the economy front, the current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1% of GDP, in the June quarter, driven by lower trade deficit on deeper import contraction, the Reserve Bank said.

The US Federal Reserve left interest rates unchanged on Wednesday but strongly signalled it could still tighten the monetary policy by the end of this year as the labour market improved further.

Banking, auto, utilities, finance, industrial, oil & gas, power, metal and realty stocks led from the front. On the other hand, IT and technology stocks were among the major losers.

Among the 50-stocks of Nifty, Aurobindo Pharma, Hindalco, Bank of Baroda, IndusInd Bank, SBI and Eicher Motors were among the gainers on NSE, whereas Tech Mahindra, Axis Bank, Lupin, TCS, Coal India and Idea Cellular were among the losers today.

The India VIX (Volatility) index was down 9.89% at 13.3400. Out of 1,512 stocks traded on the NSE, 611 declined and 781 advanced today. The BSE Midcap and Smallcap indices closed up.

The rupee was trading up 11 paise at 66.74 per US dollar.

On the global front, Asian stocks closed higher. Japanese markets were closed to observe a local holiday. Shanghai Composite and Hong Kong’s Hang Seng index index closed in green.

European stocks edged on Thursday. The DAX and the CAC 40 were trading higher by 1.9% each. FTSE 100 was trading up 1%.

Larsen & Toubro gained 1.9% to Rs.1499 after the company signed the principle contract with Vietnam Border Guard valued at USD 99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard.

Syngene International Ltd rose 4.3% to Rs.502 on the BSE. Syngene International Ltd., Asia’s leading Contract Research Organization, and Strand Life Sciences, announced that they has completed a deal through which Syngene had purchased assets of Strand LifeSciences related to systems biology, Heptox and pharma bioinformatics services.

Aurobindo Pharma soared 6.3% after the company received the tentative approval of Dolutegravir 50mg from the US Food & Drug Administration (USFDA) for the treatment of HIV.

Capri Global Capital rallied 15.7% after the company considered sub division of its equity shares in the Board meeting to be held on October 10. The company will also consider issue of non-convertible debentures on private placement basis.

NTPC Ltd zoomed 2% to Rs.157 on the BSE. The company received shareholders’ approval to raise up to Rs 15,000 crore through issuance of debentures/bonds on private placement basis. The funds would be raised in one or more tranches/series not exceeding 30, through private placement, in domestic market for capex, working capital and general corporate purposes.

Shares of Indian Oil Corp rose as much as 1.2% and Gail (India) Ltd gained up to 1% after the companies agreed to buy a combined 49% stake in a liquefied natural gas terminal being built in Odisha.

Shares of Federal Bank closed 3% higher at Rs.73 on BSE today. Around 33.5 Lakh shares were traded in a multiple block at Rs.77.70-77.75 on the BSE.

United Breweries dropped 1.5% to Rs.876. United Breweries said private lender Yes Bank has invoked 19 Lakh of its shares worth Rs.156 crore which were pledged by McDowell Holdings, a unit of Vijay Mallya-led UB Group, as per media reports.

A total of 75 stocks registered a fresh 52-week high in trades today, whereas 23 stocks touched a new 52-week low on the NSE.
 

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