Thursday, 10 November 2016

Sensex Finishes on a Strong Note; Banks Rally



Indian share market rebounded in today’s trade mirroring gains in Asia and on Wall Street overnight, as markets reassessed the economic implications of Republican Donald Trump's shock U.S. presidential election victory.  At the closing bell, the BSE Sensex stood higher by 265 points, while the NSE Nifty finished up by 94 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 1.7% and 1.8% respectively. Gains were largely seen in metal, PSU and bank stocks.

Bank stocks rallied 3.7% as banks are expected see improved liquidity when people start tendering cash after the government decided to withdraw 500 and 1,000 rupee notes.
According to an article in The Economic Times, Coal India Ltd (CIL) has allocated 24.9 million tonnes (MT) of coal under spot e-auction in the first six months of the current fiscal, down 7.7% from the year ago period. The decline comes amid government's goal to secure availability of coal to meet the demand of various sectors of the economy including power.

In another development, as many as 15 power plants did not lift any coal from Coal India in September, foregoing the 2.6 million tonnes of stock. This resulted in thermal plants across the country receiving delivery of only 80% of the coal allotted to them during the month.
Coal India Share price finished the day up by 4.1% on the BSE

Moving on to news from stocks in tyre sector. According to a leading financial daily, Apollo Tyres is planning to set-up a new manufacturing facility in Andhra Pradesh to manufacture tyres for two-wheeler and pick-up vehicles. The company is likely to invest around Rs 5 billion in the new facility. 

The company reported a marginal drop in its net profit for the quarter ended September to Rs 2.05 billion, compared with 2.15 million in the same quarter last financial year. The revenue too fell sharply to Rs 23.03 million during the period, against Rs 25.21 million in the year-ago period, due to sharp drop in sales in the commercial vehicles segment.

Apollo Tyres share price finished the day up by 0.4% on the BSE.

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