Key benchmark indices held firm in mid-afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was up 430.82 points or 1.8% at 24,393.03. The 50-unit Nifty 50 index was currently up 132.05 points or 1.81% at 7,408.85. The Sensex hovered above the psychological 24,000 mark after a gap-up opening took the barometer index above that mark. Gains in global stocks aided the rally on the domestic bourses. The broad market depicted strength.
The Sensex jumped 478.25 points or 1.99% at the day's high of 24,440.46 in mid-afternoon 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 151.70 points or 2.08% at the day's high of 7,428.50 in early afternoon 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 three gainers against every loser on BSE. 1,978 shares gained and 545 shares fell. A total of 160 shares were unchanged. The BSE Mid-Cap index was currently up 2.02%. The BSE Small-Cap index was currently up 2.04%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks rose on European Central Bank stimulus hints, with recovering commodities prices boosting energy and mining stocks. European Central Bank (ECB) President Mario 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.
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 closed 5.88% higher. In Hong Kong, the Hang Seng index rose 2.9%. 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 135 points at the opening bell today, 22 January 2016. US stocks edged higher yesterday, 21 January 2016, as oil prices bounced back.
Capital goods stocks edged higher. Bharat Heavy Electricals (Bhel) (up 2.09%), BEML (up 2.73%), Bharat Electronics (up 1.58%), Crompton Greaves (up 2.2%), Thermax (up 0.43%) and ABB India (up 0.13%) gained.
Index heavyweight and engineering and construction major L&T advanced 3.17% to Rs 1,137.20. The stock hit high of Rs 1,141.70 and low of Rs 1,110.30 so far during the day. The company has won a contract worth Rs 1213 crore from the Dedicated Freight Corridor Corporation of India. The freight corridor project has been secured by a consortium of L&T and Sojitz Corp., Japan.
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Siemens rose 2.36% after the company announced of winning two orders aggregating around Rs 267 crore. The separate announcements of order wins were made by the company during market hours today, 22 January 2016
Cement stocks gained. Ambuja Cements (up 1.17%), ACC (up 1.62%), UltraTech Cement (up 0.69%) and Shree Cement (up 2.28%) gained.
Grasim Industries was up 0.35% at Rs 3,465. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Mahindra & Mahindra (M&M) rose 4.69%. M&M during market hours today, 22 January 2016 announced the launch of its mHawk new 1.99 litre diesel engine. The new engine would be available for customers within the Delhi and NCR Region to begin with, M&M said. The new 1.99 litre engine will power the New Generation Scorpio and will deliver 120 HP while for the New Age XUV500, it will deliver 140 HP, it added.
Aviation stocks dropped sharply as global crude oil prices recovered after a recent slide. SpiceJet (down 10.51%) and Jet Airways (India) (down 9.96%) declined.
InterGlobe Aviation lost 18% after the company's management in a post-result conference call reportedly said it may miss target of taking up 111 aircraft in FY 2016 after delay in delivery of Airbus A320 neo aircraft
InterGlobe Aviation's management reportedly said that the airline is in talks with Airbus and engine maker Pratt & Whitney for early delivery of A320 neo aircraft. It may be recalled that InterGlobe Aviation had last month said that it had received an official notification from Airbus on 17 December 2015 that the A320 neo aircraft which was to be delivered to the company on 30 December 2015, had been delayed due to industrial reasons. InterGlobe Aviation was waiting for the fuel-efficient neo versions of the Airbus aircraft that will help IndiGo save fuel costs by 10-15%, reports suggested.
InterGlobe Aviation's net profit rose 23.7% to Rs 657.28 crore on 11.9% growth in revenue to Rs 4407.49 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 21 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 $1.36 a barrel at $30.61 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.
Higher crude oil prices impact aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
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