Metal and banking sector stocks led gains, with key benchmark indices extending gains in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 389.17 points or 1.62% at 24,351.38. The Nifty 50 index was up 124.45 points or 1.71% at 7,401.25. The Sensex hovered above the psychological 24,000 mark after a gap-up opening saw the Sensex regaining that mark. Gains in global stocks aided the rally on the domestic bourses. The broad market depicted strength.
The Sensex jumped 422.23 points or 1.76% at the day's high of 24,384.44 in mid-morning trade, its highest level since 19 January 2016. The barometer index rose 157.83 points or 0.65% at the day's low of 24,120.04 in early trade. The Nifty gained 133.50 points or 1.83% at the day's high of 7,410.30 in mid-morning trade, its highest level since 20 January 2016. The index rose 50.80 points or 0.69% at the day's low of 7,327.60 in morning trade.
The broad market depicted strength. There were more than four gainers against every loser on BSE. 1,828 shares gained and 393 shares fell. A total of 112 shares were unchanged. The BSE Mid-Cap index was currently up 1.64%. The BSE Small-Cap index was currently up 2.05%. Both these indices outperformed the Sensex.
In overseas stock markets, Japan and Hong Kong led gains in Asian stocks triggered by hints of more stimulus from European Central Bank (ECB) President Mario Draghi. In Japan, the Nikkei 225 Average was currently up 5.59%. In Hong Kong, the Hang Seng index was currently up 2.48%. US stock index futures pointed at further gains for US stocks. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 112 points at the opening bell today, 22 January 2016. US stocks edged higher yesterday, 21 January 2016, after hints of more stimulus from ECB President Mario Draghi and as oil prices bounced back.
Draghi yesterday, 21 January 2016, signaled at a news conference that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly. The ECB left its key interest rates unchanged after a monetary policy review.
Oil exploration and production (E&P) stocks rose as global crude oil prices recovered. Oil India (up 2.04%), ONGC (up 2.38%) and Reliance Industries (up 1.58%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
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Cairn India rose 3.09% ahead of its Q3 December 2015 result today, 22 January 2016.
Crude oil prices rebounded, as prices drew support from freezing weather conditions and snowstorms that have gripped the US East Coast and parts of continental Europe, lifting demand for heating oil. Brent for March settlement was currently up 50 cents at $29.75 a barrel. The contract had risen by $1.37 a barrel or 4.91% to settle at $29.25 a barrel during the previous trading session.
Stocks of public sector oil marketing companies (PSU OMCs) also edged higher. HPCL (up 0.72%), BPCL (up 0.28%) and Indian Oil Corporation (up 2.73%) gained.
Banks stocks saw across the board gains on renewed buying. Among PSU bank stocks, State Bank of India (SBI) (up 4.24%), Punjab National Bank (up 3.77%), Bank of Baroda (up 4.98%), Canara Bank (up 6.86%), IDBI Bank (up 3.39%), Bank of India (up 5.83%) and Union Bank of India (up 5.12%) advanced.
Among private bank stocks, HDFC Bank (up 1.59%), Kotak Mahindra Bank (up 2.95%), ICICI Bank (up 2.98%), IndusInd Bank (up 3.14%) and Yes Bank (up 3.72%) gained.
Axis Bank surged 4.2%, with the stock extending previous day's gains triggered by the bank reporting good Q3 result. Shares of Axis Bank had jumped 5.21% to settle at Rs 408.90 yesterday, 21 January 2016. The bank's net profit rose 14.5% to Rs 2175.30 crore on 14.66% rise in total income to Rs 12531.11 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours on 20 January 2016.
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