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Sensex up over 200 points, Nifty holds 7,850; Tata Steel, GAIL gain

GAIL, BHEL, Tata Steel, Sun Pharma and HUL have surged between 2%-4%

Nifty reclaims 7,800 in opening trades; global markets positive
SI Reporter Mumbai
Last Updated : Dec 23 2015 | 10:37 AM IST



Markets have extended gains and are trading near day’s high led by index heavyweight RIL and financial shares.

At 10:30 am, the S&P BSE Sensex was higher by 266 points at 25,857 and the Nifty50 gained 77 points at 7,863.

The top gainers from the Sensex pack are GAIL, BHEL, Tata Steel, Sun Pharma and HUL, all surging between 2%-4%.


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Updated at 9:30 am

Markets have started the session on a higher note tracking positive global cues along with buying among index heavyweights like RIL, HDFC leading the gains.

By 9:30 am, the S&P BSE Sensex was higher by 221 points at 25,811 and the Nifty50 gained 64 points at 7,850. Among broader market, BSE Midcap and Smallcap indices are up almost 1%.


According to Anand Rathi's morning note, "Nifty has to continue to hold the multiple support of 7,725-7,733 zones to get a bounce back move towards 7,850 levels. On the downside if it fails to hold 7,725 zone then momentum may fizzle out and index may drag down towards 7,650 and lower levels. Market now requires a follow up buying, consolidating and shifting of base to higher levels to continue its upswing led by support based buying in next coming sessions."

In the macro-economic front, India's current account deficit (CAD) narrowed to $8.2 billion (1.6% of gross domestic product) in the September 2015 quarter from $10.9 billion (2.2% of GDP) in the year-ago quarter.

Traders will remain cautious in a truncated week. The stock exchanges will be closed for trading on Friday on account of Christmas Day. Further, the winter session of the parliament ends today.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 168.73 crore yesterday as per provisional data released by the stock exchanges.


In overseas markets, Asia shares edged higher on Wednesday following a modest bounce on Wall Street, while the dollar drifted lower and oil found some relief from recent relentless selling.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.4 percent to the highest in almost two weeks. Australia's main index added 0.7%, while South Korea firmed 0.5%.

Already shallow liquidity was drained further by the absence of Tokyo for a holiday, while on Thursday a host of markets globally will be either shut or closing early.

Back home, Tata Steel is the top Sensex gainer, up almost 3% after its overseas subsidiary Tata Steel UK has signed a letter of intent with Greybull Capital, an investment company, to enter exclusive negotiations for a potential sale of its long products Europe business.

GAIL India has extended last date of bidding for its $7 billion tender for hiring nine newly built ships for ferrying LNG from the US by over two months to allow Indian shipyards to tie up technology for building the specialised vessels. Shares of GAIL are have gained over 2%.

ONGC is up over 1%. The Cabinet Committee on Economic Affairs (CCEA) yesterday, 22 December 2015, has given its approval for investment of Rs 5000 crore by ONGC into the equity share capital of ONGC Videsh (OVL) by conversion of existing loan of equivalent amount into equity.

Other notable gainers are Sun Pharma, Lupin, Reliance Industries, HDFC, BHEL and Infosys.

NEW LISTINGS

Alkem Labs will make its debut on the bourses today. The issue was subscribed over 44 times and the issue price was fixed a the top end of the price band at Rs 1,050 per share.

Dr Lal Path Labs will also list today. The issue was subscribed over 33 times and the issue price was fixed at the top end of the price band Rs 550 per share.

With Reuters input

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First Published: Dec 23 2015 | 10:33 AM IST

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