After falling for four consecutive trading sessions, the Indian equity markets finally made a strong comeback amid positive vibes coming from the Asian and European markets. The market rallied after Union Cabinet approved new civil aviation policy and merger of 5 associates with SBI. Nifty closed with again of 98 points at 8,206, while BSE Sensex ended with a gain of 331 points at 26,726.
On the global front, the Shanghai Composite index closed higher by 1.5%. Hong Kong’s Hang Seng index and Nikkei 225 closed marginally up.
European shares rose early on Wednesday after a five-day losing streak caused by jitters about next week’s British referendum on European Union membership. The FTSE 100 was trading up 0.87%. DAX and the CAC 40 are gained 1% each.
Shares of the subsidiaries of India’s largest bank, State Bank of India (SBI), rose today on Cabinet’s approval to the proposed merger of SBI’s five subsidiaries and Bharatiya Mahila Bank (BMB) with the parent bank. State Bank of Mysore hit a 20% upper circuit at Rs.547.90 on BSE. CNBC TV18 reported that the Cabinet has given a go-ahead to SBI and its arms for the proposed merger. On the back of the green signal given by the Cabinet, State Bank of Travancore surged 19% and State Bank of Bikaner and Jaipur soared 18% on BSE. SBI jumped 4% to Rs.216.
International Paper jumped 6% to Rs.303 after the company said in a notice to exchanges that its promoters to sell 20% stake to parent for restructuring.
Aviation stocks rallied after Union Cabinet approved the new aviation policy that brings a slew of benefits for the passengers. According to the new policy, airfare is capped at Rs.2,500 for an hour-long journey. SpiceJet surged 3.5% to Rs.67. IndiGo climbed 2%. Jet Airways closed marginally higher.
Emami Infrastructure hit 20% upper circuit at Rs. 50.10. The company announced High Court at Calcutta has, today, the June 14, 2016, sanctioned the Scheme of Arrangement for Amalgamation of Emami Realty Limited and Emami Rainbow Niketan Private Limited, the wholly-owned subsidiaries, with the Company Emami infrastructure Limited in the open Court.
NMDC gained 1% to Rs.91.70 after the company reported 4.99 million tonnes of iron ore production and logged sales volume of 4.98 MT up to May 2016. The company’s Chhattisgarh mines produced 3.29 MT of iron ore and registered sales volume of 3.31 MT, while Karnataka mines produced 1.70 MT of iron ore and sold 1.67 up to May 2016.
Thiru Arooran Sugars hit 10% upper circuit to Rs.108.05 on BSE. The company reported net profit of Rs.27.37 crore for the quarter ended March 2016 as compared with net loss of Rs.18.61 crore in a year ago quarter.
Unitech cracked 4.5% to Rs.4.91. Delhi court ordered initiation of proceedings against the company and its top bosses in a case of alleged cheating lodged by an investor for not giving him possession of a flat booked in 2006 in Greater Noida, says report.
Crompton Greaves slipped 1.4% to Rs. 135. Report says that HDFC Mutual Fund has trimmed its stake in the company by 2.01 per cent to 7.20%.
Sintex Industries jumped 6% to Rs.80.45 on BSE after the stock will be included in the futures and options segment of the National Stock Exchange with effect from July 1.
Punjab National Bank gained 1% to Rs.90.40. The bank declared a list of 913 willful defaulters, including Kingfisher Airlines and NAFED, with total outstanding dues of Rs.11,486 crore.
USDINR trade today trading up 17 paise at 67.09 per US dollar.
Out of 1,418 stocks traded on the NSE, 430 declined and 927 advanced today.
Top 5 Nifty Gainers: SBI (0.67%), GAIL (0.61%) and Tata Steel (0.52%).
Top 5 Nifty Losers: ICICI Bank (-2.68%), Maruti Suzuki (-2.38%), Bharti Airtel (-1.99%), ITC Ltd (-1.99%) and NTPC (-1.95%)
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