 "Sensex, Nifty surges 1% as India's CAD narrows")
Markets are trading higher in line with their global peers following a modest recovery in global crude oil prices. Further, the contraction in CAD in the September quarter bolstered the sentiments at the D-Street.
At 12:50 pm, the S&P BSE Sensex has climbed 244 261 points to trade at 25,835 after hitting an intra-day high of 25,863 and the NIfty50 has surged 72 points to quote at 7,858 after touching an intra-day high of 7,865.
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.
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.
DEBUT STOCKS
Dr Lal PathLabs listed at Rs 720, a 31% premium to its issue price of Rs 550 per share on the National Stock Exchange (NSE). The stock was up 2.6% at Rs 739 after hitting a high of Rs 748.
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Alkem Laboratories made its debut at Rs 1,380, a 31% premium against its issue price of Rs 1,050 per share, on the National Stock Exchange (NSE). The stock was marginally down at Rs 1,379 after hitting a high of Rs 1,399.
KEY STOCKS
Oil and gas shares are displaying a stellar performance as global crude oil stabilised after they hit 11-year lows early this week. Reliance Industries, ONGC and GAIL have jumped between 1.5%-5%.
ONGC is up 1.8% after the Cabinet Committee on Economic Affairs gave 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.
GAIL emerged as the largest gainer up 5% after India 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.
Meanwhile, recovery in the commodity prices has lifted the metal pack higher. Hindalco, Tata Steel, Vedanta have shot up between 2%-4%. Tata Steel climbed 2.7% after its overseas subsidiary Tata Steel UK 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.
A rebound in the technology stocks is seen after these stocks weakened in the previous on account of sharp hike in US visa fees. Infosys and TCS have gained 0.6% higher.
Among individual stocks, Sun Pharma extended gains and has jumped 3% after a media reports stated that the US FDA has directed the company to systematically improve the oversight of manufacturing quality to ensure sustainable quality assurance.
Capital Goods major L&T has soared over 1% after its construction division, L&T Construction, won orders worth Rs 1178 crore across various businesses in December 2015. Meanwhile, its peer BHEL has advanced 3.5%.
Other prominent gainers in the Sensex pack include Bharti Airtel, NTPC, HUL and Coal India up between1%-2%.
On the flip side, select auto shares are witnessing selling pressure with M&M and Hero Motocorp down between 0.1%-0.5%.