12:58 pm Market Update:
Equity benchmarks rallied further following strong Europe opening. The Sensex surged 384.22 points or 1.49 percent to 26098.88 and the Nifty rose 122.05 points or 1.57 percent to 7913.90.
About 1770 shares have advanced, 647 shares declined, and 72 shares are unchanged on the BSE.
12:55 pm Smart City projects: The parliamentary affairs minister Venkaiah Naidu announced nominations of 98 cities for its ambitious Smart Cities project. As per the five-year plan, the government will allocate Rs 200 crore this year and follow up with Rs 100 crore every year for remaining four years. The cities will be developed to provide world class infrastructure, sustainable environment and smart solutions.
Twenty-four of the 98 cities selected are capital cities, while 8 have population of 1 lakh or below. UP, Tamil Nadu and Maharashtra have got maximum nominations.
12:50 pm Buzzing: Bosch gained 2 percent after the company has inaugurated its new manufacturing facility at Bidadi, Bengaluru in the state of Karnataka at a built up area of approximately 38,000 square meters with an investment of around Rs 340 crore.
The construction of the Bidadi plant spans over two phases, with the second phase scheduled to be completed by 2018, it said in its filing.
“This new state-of-the-art manufacturing facility will produce Diesel products that were previously manufactured at the Adugodi plant, and would have over 2,600 associates working at the facility. The new plant in Bidadi will produce common rail pumps & rails in the first phase & conventional fuel injection pumps production will start in the second phase,” it detailed.
12:45 pm Europe Update: European markets opened higher today following a sharp selloff yesterday, after US stocks made a stunning rebound to post the biggest one day gain since 2011.
London’s FTSE 100 was up 2.4 percent, Germany’s DAX index was 2.7 percent higher, while France’s CAC saw a 2.5 percent pop.
Analysts attributed the bounce in US stocks to New York Federal Reserve President William Dudley, who said an interest rate hike in September looked less compelling. Dudley is a voting member of the Federal Open Market Committee (FOMC).
12:35 pm Asia Update: China’s Shanghai Composite index closed higher for the first time in last six sessions and posted biggest single day percentage gains since July 9.
The index rose 5.3 percent to close at 3,083.59.
Hang Seng rallied 3 percent. Nikkei rose 1 percent and Straits Times was up 2 percent.
12:30 pm Hindalco in News: Hindalco Industries seeks its shareholders’ approval to raise up to Rs 6,000 crore through issuance of non convertible debentures (NCDs) on private placement basis.
“Consent is sought to offer or invite subscription to non convertible debentures up to an amount not exceeding Rs 6,000 crore on private placement basis from time to time until September 15, 2016,” Hindalco said in a BSE filing.
Hindalco said its Board will consider raising funds in one or more series/ tranches.
The company’s AGM will be held on September 16.
12:15 pm Gold Update: Gold steadied today after suffering its biggest fall in five weeks in the prior session as stock markets recovered, but indications that a US rate hike might happen later than expected kept a floor under prices.
Cheered by Wall Street’s rebound, Asian stocks rose led by Chinese markets whose deep tumble this week fed a global rout.
Spot gold was up 0.1 percent at USD 1,126.65 an ounce, after dropping 1.3 percent on Wednesday, its steepest decline since July 20.
Bullion fell to a one-week low of USD 1,117.35 overnight, taking its losses this week to nearly 3 percent.
US gold for December delivery edged up 0.2 percent to USD 1,126.40 an ounce.
12:00 pm Market Check
The market continued to see strong upmove in noon trade with the Sensex holding 26000 level led by banking & financials, pharma and oil & gas stocks. The broader markets outperformed benchmarks as the BSE Midcap gained 1.6 percent and Smallcap rose 1.8 percent.
The Sensex climbed 289.51 points or 1.13 percent to 26004.17 and the Nifty rose 97.45 points or 1.25 percent to 7889.30. About 1727 shares have advanced against 576 shares declined on the Bombay Stock Exchange.
Housing finance company HDFC rally, up 6.4 percent and Cairn India, too, climbed further to 8 percent on short covering and value buying. Vedanta, Cipla, Lupin, Infosys, Ambuja Cements and Kotak Mahindra Bank jumped 2-5 percent.
However, BHEL plunged 4 percent followed by Bajaj Auto, Hero Motocorp and Yes Bank with 1-2 percent losses.
Asian markets traded in positive though they were off day’s high. Nikkei gained over 1 percent while Shanghai slipped into the red.