Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade, however, gains were small. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 77.16 points or 0.28% at 27,333.98. The Nifty 50 index was up 14 points or 0.17% at 8,431.
After swinging between gains and losses near the flat line in initial trade amid mixed Asian cues, key indices consolidated gains.
The BSE Mid-Cap index was up 0.41%. The BSE Small-Cap index was up 0.38%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,301 shares rose and 962 shares declined. A total of 173 shares were unchanged.
Shares of public sector oil marketing companies rose after crude oil prices dropped in the previous session. HPCL (up 1.39%), BPCL (up 2.26%) and Indian Oil Corporation (IOCL) (up 2.34%) edged higher.
Lower crude oil prices could decrease under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of liquified petroleum gas (LPG) and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In global commodities markets, Brent for March 2017 settlement was up 44 cents at $54.36 a barrel. The contract had dropped $1.55 a barrel or 2.79% to settle at $53.92 a barrel during previous trading session.
US oil edged higher after hitting one-week lows touched the session before, with investors turning their attention to upcoming government data on US inventories. Sentiment in oil markets has been toggling between expectations of a rebound in US shale production and hopes that oversupply may be curbed by output cuts announced by the Organization of the Petroleum Exporting Countries (OPEC) and others.
Also Read
Shares of oil production and exploration firms were mixed. Cairn India (down 0.74%) and Oil India (down 0.36%) declined. Reliance Industries (RIL) (up 0.66%) and ONGC (up 1.42%) gained.
Shares of power generation and power distribution companies were mixed. Torrent Power (up 0.59%), Tata Power Company (up 0.7%), and NTPC (up 0.38%) gained. Adani Power (down 0.13%), Power Grid Corporation of India (down 0.38%), Reliance Infrastructure (down 0.23%) and Reliance Power (down 0.11%) declined.
NHPC slumped 7.45% as the stock turned ex-dividend today, 19 January 2017 for an interim dividend of Rs 1.70 per share for the year ending 31 March 2017. Before turning ex-dividend, the stock offered a dividend yield of 6.03% based on the closing price of Rs 28.15 yesterday, 18 January 2017.
On 12 January 2017, NHPC's board of directors had approved interim dividend of Rs 1.70 per share for the year ending 31 March 2017.
Meanwhile, NHPC announced that TLDP-III (4 X 33) 132 megawatts (MW) power station in West Bengal has been completely restored on 18 January 2017 which was under complete shutdown for restoration work of GIS (Line-I Bay). The announcement was made after market hours yesterday, 18 January 2017.
Shares of state run coal mining major Coal India fell 0.03% to Rs 308.55. The stock hit high of Rs 310.10 and low of Rs 306.95 in intraday trade.
Hatsun Agro Product rose 2.71% after net profit rose 64.1% to Rs 28.81 crore on 13.9% increase in net sales to Rs 944.92 crore in Q3 December 2016 over Q3 December 2015. The result was announced after market hours yesterday, 18 January 2017.
Great Eastern Shipping Company rose 2.13% after the company said that the debenture issue committee, at its meeting held 16 January 2017, allotted 7.99% 5,000 unsecured non-convertible debentures of face value of Rs 10 lakhs each, aggregating to Rs 500 crore, in two tranches of Rs 250 crore each. The announcement was made before trading hours today, 19 January 2017.
Orient Green Power Company rose 3.38% after the reports indicated that Infrastructure Leasing and Financial Services (IL&FS) is in advanced talks to merge its wind energy assets with Chennai-based listed Orient Green Power.
The boards of IL&FS and Orient are expected to meet soon and discuss a merger proposal which, if cleared, will help the entity to acquire more wind energy assets. The plan is to consolidate and use stock and cash to acquire assets that will help scale up capacity to over 2,000 megawatts (MW) by financial year 2018, the report said.
Meanwhile, there are expectations of announcement of sops for the power sector in the upcoming Budget 2017-18. The upcoming Budget may reportedly extend the 80 IA tax holiday, provide further impetus to renewable energy, particularly hydro projects, offer clarity on the applicability of GST, lower the cess on coal and possibly reduce corporate tax rates.
Overseas, Asian stocks were mixed. The Dow Industrial Average yesterday, 18 January 2017, closed at the lowest level of 2017, marking a fourth straight day in the red for the blue-chip gauge, but the broader stock market managed modest gains. Federal Reserve Chairwoman Janet Yellen said she expects rate hikes a few times a year until the end of 2019.
Among economic data in US, industrial output accelerated last month at its strongest pace in two years. The housing-market index from the National Association of Homebuilders showed that builder sentiment slipped in January after notching its highest reading of the business cycle in December. Despite the drop, the January number was the second-highest reading of the cycle.
Wall Street trading over the past several days has been subdued as investors await signs that the stock-market rally that followed President-elect Donald Trump's November election victory, supported by his campaign promises to increase fiscal spending, cut taxes and roll back regulations, is based in reality and underpinned by solid corporate quarterly results.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content