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Nifty maintains strong uptrend; Vedanta, Cairn extend rally


TheNewsInternational Team

12:59 pm Market Update:

The Sensex rallied 393.40 points or 1.50 percent to 26624.59 and the Nifty climbed 126 points or 1.59 percen to 8074.95.

About 1708 shares have advanced, 756 shares declined, and 101 shares are unchanged on the BSE.

12:55 pm Market Expert:
VK Sharma of HDFC Securities believes that 8100 is a good buy level for the Nifty. Initiatives by US Federal Reserve and Reserve Bank of India will boost market sentiment, added Deven Choksey of KRChoksey Investment Mangers.

Choksey says 8050-8150 is a good support level at present. He doesn’t expect the Nifty to breach 7600 level in near future. 

12:45 pm IPO opens:
Ahmednagar-based (Maharashtra) Prabhat Dairy has opened its initial public offer for subscription today. The price band for the issue, which will close on September 1, is fixed at Rs 140-147 a share.

The issue comprises of fresh issue of Rs 300 crore and an offer for sale of up to, 1,47,06,000 equity shares (comprising of up to 31,51,000 shares by Nirmal Family Trust (promoter), 65,80,000 equity shares by the India Agri Business Fund, 23,000 shares by the Real Trust, and 49,52,000 shares by Societe De Promotion Et De Participation Pour La Cooperation Economique.

Net proceeds from the fresh issue will be utilised for part pre-payment of loans availed by company & its wholly owned subsidiary, SAIPL; capital expenditure; and general corporate purpose, said an integrated milk and dairy products company.

12:30 pm Buzzing: Shares of kitchen appliances firm TTK Prestige today surged as much as five percent on bourses after the company said it has signed a long-term settlement with the workers’ union at its Hosur unit in Tamil Nadu.

“The company has signed a long-term settlement with the workers’ union at the company’s Hosur unit in Tamil Nadu. This settlement provides for a superior productivity compared with the earlier settlements,” the company said in a regulatory filing on August 27.

Shares of the company opened on a strong note at Rs 3,800 and then jumped 4.53 percent to an early high of Rs 3,912.15.

12:15 pm Oil Update: Crude oil futures rose today in Asian trading, adding to their biggest one-day rally in over six years, the day before led by recovering equity markets and news of diminished crude supplies.

US crude futures are on track for their first weekly gains in 11 weeks, ending the longest losing streak since 1986. Brent crude is on track for its first weekly gain in two weeks.

Stock markets around the world rallied on Thursday, shaking off a slump related to China growth fears, as strong US economic data boosted investor sentiment, and the dollar advanced for a third consecutive session.

Front-month October Brent crude was up 44 cents, or nearly 1 percent, at USD 48 per barrel, after trading sideways earlier. It settled USD 4.42 higher at USD 47.56 per barrel in the previous session.

US crude was 80 cents, or nearly 2 percent, higher at USD 43.36 per barrel, after ending up USD 3.96, or 10.3 percent, at USD 42.56 per barrel, its biggest one-day percentage gain since March 2009.

12:00 pm Market Check

Equity benchmarks as well as broader markets remained strong in noon trade with the Sensex and Nifty rising 1.6 percent each, led by a surge in oil & gas, metal and IT stocks. The BSE Midcap and Smallcap gained 1.5 percent each.

The Sensex climbed 416.89 points to 26648.08 and the Nifty jumped 131.25 points to 8080.20. About 1688 shares have advanced against 687 shares declined on the Bombay Stock Exchange.

Oil & gas stocks are the winners in trade today after crude prices spiked over 10 percent overnight. Cairn India and ONGC topped the charts with over 5 percent. But oil marketing companies lost in trade with BPCL down 2 percent.

Rise in copper and zinc prices led the rally in metal stocks. CNX Metal index rose over 1 percent led by stocks like Vedanta (up 7.4 percent), Hindalco (up 4.3 percent).

In the midcap space, Gammon Infra jumped 5 percent as it sold stake in 9 project companies to Brookfield & Core Infra India Fund. Sequent Scientific gained 2.5 percent as it will acquire animal health business of Lyka Exports.

Globally, Asian markets extended recovery as investors cheered a second day of gains in Chinese and US market. Sentiment also got a lift on news that Chinese pension funds will invest USD 313 billion in stocks and other assets.

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