Sensex, Nifty close at the high point of the day; bank stocks outperform

8 Sep 2022 , 03:38 PM

The domestic equity benchmarks ended with strong gains after see-saw styled session on Thursday. The Nifty closed tad below the 17,800 mark. Bank, financial services and IT stocks advanced while metal, media and consumer durables stocks declined. Gains in domestic equity benchmarks mirrored the uptick in global peers. As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 659.31 points or 1.12% to 59,688.22. The Nifty 50 index added 174.35 points or 0.99% to 17,798.75. In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index advanced 0.60%. The market breadth was strong. On the BSE, 2065 shares rose and 1401 shares fell. A total of 123 shares were unchanged. Economy: The Union Cabinet has approved policy on long term leasing of railway land for implementing PM Gati Shakti framework. The plan will not incure any additional expenditure. However, liberalizing the land leasing policy will open avenues for all stakeholders/service providers/operators to establish more cargo related facilities. Besides bringing more revenue to railways, the plan will attract more cargo to railways, increase railways modal share in freight transportation thereby reducing logistics cost of the industry. It will simplify approvals for utilities as envisaged in PM Gati Shakti Programme. It will also help in development of public utilities like electricity, gas, water supply, telecom cable, sewage disposal, drains, optical fibre cables (OFC), pipelines, roads, flyovers, but terminals, regional rail transport, urban transport etc. in an integrated manner. This policy amendment will enable employment generation potential of about 1.2 lakh employment. Buzzing Index: The Nifty Bank index advanced 2% to 40,243.40. The index had declined 0.88% in the past two sessions. Among the index constituents, Axis Bank (up 3.3%), Bank of Baroda (up 3.28%), Bandhan Bank (up 2.83%), ICICI Bank (up 2.62%) and State Bank of India (up 2.36%) were the top gainers. Further, Punjab National Bank (up 2.13%), IDFC First Bank (up 1.99%), IndusInd Bank (up 1.82%), AU Small Finance Bank (up 1.26%) and Kotak Mahindra Bank (up 1.24%) edged higher. Stocks in Spotlight: Websol Energy Systems hit an upper circuit limit of 10% at Rs 108.50 after the company said it has entered into a term sheet for establishment of a joint venture with AMP to manufacture and produce solar cells in West Bengal. Sonata Software jumped 6.77%. The IT service provider traded ex-bonus today, 8 September 2022. The software and consulting firm has fixed Saturday, 10 September 2022, as the record date to determine the eligibility for the issuance of one bonus share for every three equity shares held (1:3). Dr. Reddys Laboratories added 0.20%. The drug major on Wednesday announced the launch of Lenalidomide capsules in the US market with an approval from the US Food and Drug Administration (US FDA). The said drug is the therapeutic equivalent generic version of Revlimid (lenalidomide) capsules. The pharmaceutical company said with this volume-limited launch, the company is eligible for first-to-market, 180 days of generic drug exclusivity for Lenalidomide Capsules in 2.5 mg and 20 mg strengths. Interglobe Aviation fell 1.91%. Rakesh Gangwal, co-founder of IndiGo will sell up to a 2.8% stake in Interglobe Aviation through a block deal that will fetch him at least $250 million, as per reports. Ramkrishna Forgings advanced 2.34%. The board of Ramkrishna Forgings will meet on 12 September 2022 to consider proposal for fund raising by way of issue of equity shares/ preference shares/warrants/ any other securities, including through preferential issue on a private placement basis or any other methods or combination thereof. Schneider Electric Infrastructure zoomed 10.88%. The board of directors of the company considered and approved enhancing the production capacity of Vacuum Interrupters & Vacuum Circuit Breakers by setting up a manufacturing unit in Kolkata. Sona BLW Precision Forgings shed 0.36%. Sona Comstar said that it has achieved the 100,000 EV traction motor production milestone. The company started production of these indigenous traction motors at its Chennai plant in November 2020. While it took 17 months to reach cumulative production of 50,000, the company doubled it in four months. Indian Railway Catering and Tourism Corporation advanced 0.98%. IRCTC has emerged as a successful bidder in the e-auction held on 6 September 2022 for the sale of commercial built-up space in New Delhi. Global markets: Shares in Europe and Asia mostly advanced on Thursday, following Wall Streets solid rebound rally overnight. Japans economy grew more than initially reported in the second quarter, as the lifting of local Covid-19 restrictions boosted consumer and business spending. Gross domestic product (GDP) in the worlds third-largest economy expanded an annualised 3.5% in the second quarter, stronger than the preliminary estimate of annualised 2.2% growth, government data showed Thursday. US stock indexes climbed the most in roughly a month as bond yields eased, with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday. Stocks rallied as Fed Vice Chair Lael Brainard reaffirmed that the central bank would do what it takes to stifle inflation, while also noting the risks of going too far. On Wednesday, the Federal Reserve gave its summary on current economic conditions, known as the Beige Book. The report showed that economic activity was little changed in many regions across the U.S., and that growth outlooks remain weak. Investors will also be closely watching Federal Reserve Chair Jerome Powells speech Thursday as markets brace for another 75 basis-point hike later this month. Meanwhile, the European Central Bank is expected to make its next move on interest rates on Thursday. The ECB is expected to deliver its first-ever 75 basis point interest rate increase, as per reports. Oil prices settled sharply lower on Wednesday, slumping below levels seen prior to Russias invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks. Brent crude futures rose 74 cents to $88.74 a barrel. Powered by Capital Market – Live News