Nifty ends tad below 8,750 as European stocks rebound; F&O expiry eyed

After a flat opening, markets staged recovery in noon trades and closed higher on renewed buying interest in bluechips particularly financials and auto. A strong rebound in European shares amid recovery in global crude oil prices further bolstered trading sentiment during mid-session.

Meanwhile, investors are keenly awaiting for the expiry of the September F&O series and roll over positions to the October series due tomorrow.

The S&P BSE Sensex ended up 69 points to settle at 28,293 and the Nifty50 settled 39 points higher at 8,745. In the broader market, both the BSE Midcap and Smallcap indices outperformed the front-liners with gains of 1% each.

Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services said, "The Market rallied on short covering ahead of tomorrow’s expiry. Global factors like the outcome from today’s Oil exporters meet and upcoming speeches from FED & ECB will be major triggers in the market. Small & midcaps outperformed the broader market as investors utilized the recent fall to enter into quality stocks."

GLOBAL MARKETS & CRUDE OIL

European stocks rose in trade with investor sentiment buoyed by higher oil prices and a rally in the banking sector. Asian stocks dropped with European banking sector concerns and lower crude oil prices dulling investors' appetite for riskier assets.

Japan's Nikkei Average settled 1.31% lower. US stocks rose yesterday after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports.

Oil prices rose in mixed trading on Wednesday, after sharp losses in the previous session, as industry data showed a surprise draw in US crude stocks, although worries over a lack of agreement among producers to curb output kept a lid on gains.

STOCK TRENDS & CORPORATE NEWS

Top gainers from the Sensex pack included Tata Steel, Bharti Airtel, SBI, Adani Ports, ONGC and Tata Motors, all surging between 2%-3.5%.

State Bank of India (SBI) said that the bank issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon of 8.75% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2,500 crore in second tranche.

Tata Motors Finance, the vehicle financing company owned by Tata Motors, will transfer its new vehicle finance business to Sheba Properties, to its fully owned subsidiary.

Bharti Airtel on Wednesday launched international roaming (IR) packs offering free incoming calls, free calling minutes and texts to India to customers travelling abroad.

On the losing side, Reliance Industries, Coal India, HUL, Sun Pharma and Wipro lost between 0.5%-2%.

The share buyback plan of Coal India, through which the central government intends to raise Rs 3,650 crore, would commence on October 3. Shares of Coal India dipped almost 1%.

The Cabinet on Wednesday gave its nod to a consortium of IOC, Oil India and BPCL buying stakes in two Russian oilfields for a total of $3.14 billion. IOC and BPCL gained by 1% whereas Oil India slipped by 1%.

Among other shares, IDFC Bank ended higher by 5.7% to Rs 81.20, crossing a market capitalisation of Rs 25,000 crore mark on the BSE

Nandan Denim surged over 12% after the company announced that it is planning to issue 5 million convertible warrants on preferential basis to foreign investors at Rs 200 each.

MRF, Birla Corporation, Kajaria Ceramics, Bayer Cropsciences, Lumax Industries, Dishman Pharmaceuticals & Chemicals and Shree Pushkar Chemicals & Fertilisers were among 20 stocks from the BSE midcap and smallcap indices that touched their respective record highs on the BSE.

Manpasand Beverages ended higher by 2.6% after the company announced that its qualified institutional placement (QIP) issue opened on Tuesday, September 27, 2016.

Vivimed Labs rose around 10% today, extending its Tuesday’s 20% surge, after investor Ashish Kacholia acquired nearly two percentage point stake in the pharmaceuticals company through open market.

Balaji Telefilms jumped over 8% after the company announced that its board has approved a composite scheme of arrangement between the company and its wholly owned subsidiaries viz. Balaji Motion Pictures and Bolt Media.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel