The domestic equity barometers rallied as they hit fresh intraday high in mid morning trade. The Nifty was trading near the 15,800 mark. IT shares extended gains for second day in a row.
At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 265.48 points or 0.51% to 52,709.19. The Nifty 50 index added 89.15 points or 0.57% to 15,798.55.
In the broader market, the S&P BSE Mid-Cap index gained 0.36% while the S&P BSE Small-Cap index rose 0.89%.
The market breadth was strong. On the BSE, 1984 shares rose and 1015 shares fell. A total of 135 shares were unchanged.
Investors cheered after US Fed decided to keep the key policy rates unchanged. Fed Chair Jerome Powell said the U.S. job market still had ”some ground to cover” before it would be time to pull back from the economic support the U.S. central bank put in place in the spring of 2020 to battle the coronavirus pandemic's economic shocks.
Buzzing Index:
The Nifty IT index rose 1.15% to 30,298.70, advancing for second consecutive sessions. The index has added 1.36% in two sessions.
Coforge (up 5.58%), Larsen & Toubro Infotech (up 3.15%), Oracle (up 3.12%), MindTree (up 2.06%), HCL Tech (up 1.85%), Tech Mahindra (up 1.13%), TCS (up 0.69%), Wipro (up 0.68%) and Infosys (up 0.58%) advanced.
Stocks in Spotlight:
ABB India rose 0.29% to Rs 1701.10. On a standalone basis, ABB India's net profit jumped 331.60% to Rs 70.26 crore on a 45.2% rise in net sales to Rs 1,412.90 crore in Q2 June 2021 over Q2 June 2020. The company strong revenues for the quarter as a result of strong backlog execution and solid customer-connect and service business supported a recovery in June 2021, which to a large extent compensated for the muted offtake in first months of the quarter. All divisions witnessed a growth during the period under review. However, on a sequential basis, there was a decline of 12.5% primarily due to interruptions caused by the second wave of pandemic.
Total orders for the quarter were at Rs 1,689 crore as compared to Rs 1,200 crore in Q2 2020, recording a growth of 41%. The month of June 2021 witnessed a gradual bounce back in orders by most businesses despite various state level lockdowns in the first two months of the quarter. There was a marginal dip in orders sequentially with businesses impacted by localized impact of the second wave.
Biocon gained 1.18% to Rs 386.2. Biocon Biologics,the company's subsidiary, and Viatris Inc. received an approval from USFDA for the first interchangeable biosimilar Semglee (insulin glargine-yfgn injection) for the treatment of diabetes. The company will be eligible to have exclusivity for 12 months before the FDA can approve another biosimilar interchangeable to Lantus. Commercial preparations for launch are underway. Over the next few months, Viatris will transition the current product to the 351(k) interchangeable product.
Global Markets:
Asian stocks edged higher on Thursday after the U.S. Federal Reserve left its benchmark interest rate near zero. Meanwhile, shares in Hong Kong witnessed a rebound from a two-day slump earlier in the week.
U.S. stocks slipped on Wednesday in listless trade after the Federal Reserve gave no clue about when it might start reducing its purchases of government bonds, even as it said the economic recovery is on track.
The Federal Open Committee ended its two-day meeting by keeping interest rates in a target range between zero and 0.25%. Fed Chairman Jerome Powell said the U.S. central bank is nowhere near considering a rate hike despite the optimism over the U.S. economy.
Powered by Capital Market - Live News