Sensex up 200 pts post GST Council meet; Reliance at 9-year high

11:52 am Index launch:Asia Index Private Limited, a joint venture between S&P Dow Jones Indices and BSE, today announced the launch of the S&P BSE SENSEX Next 50 Index.

The index is designed to measure the performance of the 50 largest and most liquid companies within the S&P BSE LargeMidCap Index and not under the ambit of the S&P BSE SENSEX 50 Index.

“The S&P BSE SENSEX Next 50 Index is an extension of the S&P BSE SENSEX 50 Index,” Alka Banerjee, CEO, Asia Index Private Limited said.

The index includes the 50 largest companies after the constituents of S&P BSE SENSEX 50 index. Constituents of index are weighted by float adjusted market capitalisation. The index goes under periodic review semi-annually in June and December.

11:41 am ARSS in action: ARSS Infrastructure added over 9 percent intraday as investors cheered an order win worth Rs 140 crore by the company’s joint venture.

The Rail Vikas Nigam Limited on March 3 awarded to ARSS-SIPS (JV) the execution of work of track linking OHE, S&T and other allied works from Haridaspur to Kendrapara, including Kendrapara yard in connection with construction of New BG railway line from Haridaspur to Paradeep in Khurda Road Division of East Coast Railway in Odisha. The work order amounts to Rs 140.52 crore, the company told stock exchanges in a notification.

The work shall be completed within the stipulated period of 15 months along with six months defect liability period from the date of commencement, the exchanges were informed.

11:35 am Tie-up: Education support and coaching services firm MT Educare today said it is evaluating a potential strategic collaboration with Nspira Management Services Pvt.

“The board of directors of MT Educare Ltd, at its meeting held on March 6, 2017, approved entering into confidentiality, exclusivity and standstill agreement to evaluate a potential strategic collaboration by way of a scheme of arrangement or any other suitable structure between MT Educare and Nspira Management Services Pvt,” MT Educare said in a BSE filing.

“The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between MT Educare and Nspira Management Services Private in relation to the proposed transaction.” The company added that the current discussions are at a preliminary stage.

11:15 am Buzzing: Following reports of a stake sale, Dredging Corporation on Monday zoomed over 16 percent intraday.

According to a media report, the government was looking to give up controlling stake of 51 percent in the firm. Furthermore, the report added that the government had prepared a Cabinet note on the proposal and is now being circulated among key ministries for comment.

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11:00 am Market Check

The market continued its run-up in morning, with the Sensex firmly holding psychological 29,000 level, aided largely by Reliance Industries, banks and auto stocks. The rally was mainly on account of further developments of GST in last weekend. The GST Council on Sunday approved two crucial legislations of central GST law and the integrated GST law.

The 30-share BSE Sensex was up 218.04 points at 29050.49 and the 50-share NSE Nifty gained 63.85 points at 8961.40. The Nifty Midcap and Smallcap indices were up around half a percent.

“If the BJP were to win or show signs of making it past the poll day after tomorrow, I think that could be an event which takes the market beyond 9,000 or even 9,100,” Udayan Mukherjee, the CNBC-TV18 Consulting Editor and veteran market commentator said.

“On the other hand if that event does not deliver for the market, after this phase of consolidation, the market could easily breakdown in the near term and dart towards 8,600-8,500 kind of levels,” he added.

The market breadth remained strong as about two shares advanced for every share declining on the BSE.

Reliance Industries shares touched fresh nine-year high of 1,307.05, up 3.86 percent intraday as investors remained bullish on its telecom as well as energy prospects, especially after recently the company indicated that revenue contribution from the sector will start from April 1, 2017.