Mumbai: Equity benchmarks snapped thre-day losing streak on Thursday. The Sensex gained 311.22 points or 1.22 percent at 25764.78 and the Nifty rose 106 points or 1.37 percent to 7823, led by short covering in banking & financials, metals and auto stocks. The broader markets rallied more than 1 percent.
The market breadth was also strong. About 1703 shares have advanced, 980 shares declined, and 137 shares are unchanged on the BSE. Tata Steel, Vedanta, Axis Bank, HDFC, Hindalco and Cairn India topped the buying list, up 3.5-6 percent. However, Idea Cellular underperformed, down 3.3 percent. BPCL, Bosch, Lupin, Hero Motocorp and Sun Pharma were down 0.5-1 percent.
Indian companies raised over Rs 46,000 crore through private placement of corporate bonds in August, making it the highest fund raising in the last four months. Most of the funds have been raised mainly for business expansion and to support working capital requirements.
According to the Securities and Exchange Board of India (Sebi) data, companies garnered a total of Rs 46,564 crore from debt on a private placement basis in August, higher than Rs 27,920 crore raised in the preceding month. This was the highest level of fund raising by companies since April, when they had raked in Rs 84,807 crore.
In comparison, firms had mobilised Rs 32,875 crore in August last year. In terms of numbers, 272 issues were made last month as compared to 325 in July. 3:00 pm Market Update: The Sensex gained 327.13 points or 1.29 percent at 25780.69 and the Nifty rose 109.05 points or 1.41 percent to 7826.05. About 1695 shares have advanced, 913 shares declined, and 116 shares are unchanged on the BSE.
Amtek Auto caught in bear grip again, falling nearly 24 percent to Rs 37 on heavy selling pressure. The stock lost 79 percent in 2015. The first time ever loss in the quarter ended June 2015 and removal of stock from NSE F&O segment with effect from November series caused selling pressure. Metalyst Forging, Castex Technologies (erstwhile Amtek India), JMT Auto and Rolltainers plunges 5 percent each. 2:20 pm Rupee at 68/$?:
The rupee will touch 68 to the US dollar by end of this year, Richard Yetsenga, Global Head – Financial Markets Research at ANZ Research tells CNBC-TV18. He says weakness in emerging market (EM) currencies will continue in the near term and sees the dollar strengthening. On the impending rate hike by the US Federal Reserve, Yetsenga says the “Fed doesn’t know what they want to do.” The Fed might go for a 25 basis points (bps) rate cut if the US market remains stable till the meeting that is scheduled for second week of September, he adds.
He sees the developments in China hampering the global economy, and says emerging markets as an asset class is being viewed negatively by global investors. And while emerging markets will continue to sell off near term, India is better placed compared to its peers
Short covering (as well value buying) and positive European cues pushed the market higher. The BSE Midcap and Smallcap indices, too, traded in line with benchmarks, up 1.5 percent each. About 1720 shares have advanced against 813 shares declined on the BSE. Banking & financials, auto, capital goods, cement and metals stocks took the lead.
Tata Steel and Vedanta topped the buying list, up nearly 5 percent. HDFC (up 4.2 percent), HDFC Bank (up 1.6 percent), Tata Motors (up 3.8 percent), L&T (up 2 percent) and Axis Bank (up 3.5 percent) were the biggest contributors' to Sensex rally. However, Lupin and Hero Motocorp underperformed, falling half a percent each.
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