After extending gains in early trade, key benchmark indices traded off the day's high in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 188.98 points or 0.77% at 24,866.24. The 50-unit Nifty 50 index was up 64.75 points or 0.86% at 7,563.50. Gains in global stocks aided the upmove on the domestic bourses. World stocks rose after the US Federal Reserve slashed its projections for rate increases in 2016 after keeping rates unchanged at the conclusion of a two-day monetary policy review yesterday, 16 March 2016.
The Nifty hit its highest level in more than six-weeks when it rose 84.15 points or 1.12% at the day's high of 7,585.30 in early trade. The index rose 56.70 points or 0.75% at the day's low of 7,555.45 at the onset of the trading session. The Sensex rose 265.23 points or 1.07% at the day's high of 24,948.30 in early trade, its highest level since 14 March 2016. The barometer index rose 165.38 points or 0.67% at the day's low of 24,847.86 at the onset of the trading session.
The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,342 shares rose and 427 shares fell. A total of 79 shares were unchanged. The BSE Mid-Cap index was currently up 0.98%. The BSE Small-Cap index was currently up 0.79%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks gained after the US Federal Reserve after its monetary policy review yesterday, 16 March 2016, reduced the number of interest rate hikes expected this year. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.
US stocks rose yesterday, 16 March 2016, in the aftermath of the Fed statement. The Fed concluded a two-day policy meeting by leaving interest rates untouched, as expected, and signalling fewer rate hikes in coming months as the United States continues to face risks from an uncertain global economy. In light of the current shortfall of inflation from 2 percent, the committee will carefully monitor actual and expected progress toward its inflation goal, the Fed said in a statement. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation, it said.
IT stocks advanced. Tech Mahindra (up 1.45%), HCL Technologies (up 2.14%), and Infosys (up 0.73%) rose.
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TCS rose after the company announced the successful launch of Norway's first peer-to-peer mobile payment solution with DNB, the largest financial services group in Norway. The stock rose 0.41%. With 25% of Norway's population using DNB's peer-to-peer mobile payments application 'Vipps' within six months of launch, the P2P payment solution has helped DNB become a significant player in the highly competitive mobile payments space in a short space of time. The announcement was made after trading hours yesterday, 16 March 2016.
Wipro edged higher after the company announced the launch of cargo reservations, operations, accounting and management information systems (CROAMIS), a next gen end-to-end cargo management system for the aviation industry. The stock gained 0.02%. CROAMIS has been developed jointly between Wipro and Qatar Airways, through an innovative co-funded model. The announcement was made after trading hours yesterday, 16 March 2016.
Telecom stocks gained. Bharti Airtel (up 1.56%), Tata Teleservices (Maharashtra) (up 1.16%), and Reliance Communications (up 0.69%) gained.
Idea Cellular gained 2.03%. Videocon Industries rose 1.25%. Idea Cellular and Videocon Telecommunications (VTL) mutually agreed to terminate their earlier agreement regarding the transfer of right to use 1800 MHz spectrum in two service areas with immediate effect. It may be recalled that the Board of Directors of Idea in November 2015 had empowered the company to enter into an acquisition agreement for right to use 1800 MHz spectrum of VTL in the telecom service areas of Gujarat and UP (west) for an aggregate consideration of around Rs 3310 crore pursuant to the Department of Telecommunications (DoT) guidelines for trading of access spectrum by access service providers. There is no cost implication to Idea on termination of the agreement, the company said in a statement.
Meanwhile, Idea Cellular continues to aggressively launch its high speed mobile broadband 4G LTE services. Idea yesterday, 16 March 2016, launched its 4G LTE services in the tenth telecom service area of Maharashtra & Goa from Nagpur city. The company remains on track to launch 4G LTE services in 750 key towns across 10 telecom circles latest by end of June 2016.
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