Key benchmark indices provisionally settled with small gains, shrugging off weak trend in global stocks as domestic data showing fall in trade deficit in December extended support amid another data showing slight rise in wholesale inflation. The barometer index, the S&P BSE Sensex, rose 50.11 points or 0.18% at 27,288.17, as per the provisional closing data. The Nifty 50 index gained 16.80 points or 0.2% at 8,417.15, as per the provisional closing data. The movement of indices was restricted within a narrow range.
After a subdued start to the session's trade following weak Asian stocks, key indices reversed losses in morning trade and extended intraday gains. However, indices cut intraday gains in late trade sighting lower European stocks.
The Sensex rose 97.02 points or 0.35% at the day's high of 27,335.08 in mid-afternoon trade. It lost 65.38 points or 0.24% at the day's low of 27,172.68 in early trade. The Nifty rose 26.35 points or 0.31% at the day's high of 8,426.70 in mid-afternoon trade. It lost 25.95 points or 0.3% at the day's low of 8,374.40 in early trade.
The BSE Mid-Cap index provisionally rose 0.27%. The BSE Small-Cap index provisionally gained 0.57%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,553 shares rose and 1,206 shares declined. A total of 195 shares were unchanged.
The total turnover on BSE amounted to Rs 3013.14 crore, higher than turnover of Rs 2998.17 crore registered during the previous trading session.
HDFC rose 0.8% after the company said it will issue senior, secured, redeemable, non-convertible debentures worth Rs 800 crore on private placement basis. The announcement was made during market hours today, 16 January 2017. The issue has tenor of three years.
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The object of the issue is to augment the long-term resources of the company. The proceeds of the present issue would be utilized for financing/refinancing the housing finance business requirements of the company.
Bharat Heavy Electricals gained 0.16% after the company announced that it has successfully commissioned 500 megawatts (MW) thermal unit in West Bengal. The unit was the second 500 MW set to be commissioned at Sagardighi Thermal Power Station, Phase II project. The project has been set up by the state owned, West Bengal Power Development Corporation (WBPDCL). The announcement was made during market hours today, 16 January 2017.
Metal & mining stocks were mixed. Vedanta (up 2.35%), Hindalco Industries (up 0.26%), Hindustan Zinc (up 3.43%), Jindal Steel & Power (up 0.01%), Tata Steel (up 2.73%), Steel Authority of India (Sail) (up 2.6%), and NMDC (up 0.07%) gained. JSW Steel (down 0.03%), Bhushan Steel (down 0.12%), and National Aluminum Company (down 2.51%) declined.
The steel ministry has reportedly sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, in the upcoming Budget 2017-18.
Hindustan Copper declined 1.17%. The company's board of directors approved proposal for increasing borrowing from the consortium banks/other banks by way of overdraft or cash credit, working capital demand loan, bill discounting, other working capital arrangements from existing Rs 250 crore to Rs 550 crore. The announcement was made during trading hours today, 16 January 2017.
On the macro front, data showed during market hours today, 16 January 2017 that inflation based on wholesale price index (WPI) rose 3.39% in December 2016 from 3.15% in November 2016. Build up inflation rate in the financial year so far was 4.28% compared to a build up rate of 0.4% in the corresponding period of the previous year.
Another data showed after market hours on Friday, 13 January 2017 that India's exports rose 5.72% to $23.88 billion and imports rose 0.46% to $34.25 billion in December 2016 over December 2015. The trade deficit declined 9.9% to $10.37 billion in December 2016 over December 2015.
Overseas, European stocks edged lower amid initial volatility tracking weak Asian stocks as automaker and bank shares led markets lower in thin volumes. UK Prime Minister Theresa May will reportedly address a speech tomorrow, 17 January 2017, in which many investors believe she could spell out an end to her country's participation in European Union's single market. May is also expected to elaborate on the UK's negotiation priorities in a speech.
Asian stocks dropped after the plunge in British pound amid fears of hard exit by UK from the European Union, which Britain voted to leave last June. In mainland China, the Shanghai Composite ended 0.32% lower, In Hong Kong, the Hang Seng settled 0.96% lower.
US stocks rose moderately on Friday, 13 January 2017, on the back of quarterly earnings from some of the country's biggest banks, as the Nasdaq Composite index closed at a record high.
US stock markets have been in an updraft since November's presidential election, with the bulk of the gains coming from the financial sector, as investors have bet banks would benefit from deregulation under President-elect Donald Trump's coming administration and an environment that is expected to see rising interest rates.
US financial markets will be closed today, 16 January 2017, for Martin Luther King Jr. Day.
In the latest economic data, US retail sales rose 0.6% in December, less than expected, while holiday sales were up a better-than-expected 4%.
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