After seeing volatility in early trade, key benchmark indices extended gains in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex was up 157.38 points or 0.64% at 24,834.75. The 50-unit Nifty 50 index was up 54.05 points or 0.72% at 7,566.60. Gains in global stocks supported the upmove on the domestic bourses. Asian stocks edged higher on stronger currencies relative to the US dollar. A broad based weakness in the dollar aided gains in Asian currencies on the heels of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016.
The Sensex rose 161.62 points or 0.65% at the day's high of 24,838.99 in morning trade. The barometer index rose 4.27 points or 0.01% at the day's low of 24,681.64 at the onset of the trading session. The Nifty rose 54.20 points or 0.72% at the day's high of 7,566.75 in morning trade. The index rose 5.35 points or 0.07% at the day's low of 7,517.90 at the onset of the trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,031 shares rose and 715 shares fell. A total of 98 shares were unchanged. The BSE Mid-Cap index was currently up 0.25%. The BSE Small-Cap index was currently up 0.28%. Both these indices underperformed the Sensex.
In overseas stocks markets, Chinese stocks led gains in Asian markets after Chinese authorities guided the yuan stronger against the dollar. In mainland China, the Shanghai Composite was currently up 1.88%. In Hong Kong, the Hang Seng index was currently up 0.68%. Fed slashed its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on 16 March 2016. 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 edged higher yesterday, 17 March 2016, as energy, materials and industrials sectors rose sharply, helped by soaring commodity prices.
Realty stocks rose. DLF (up 1.9%), D B Realty (up 2.21%), Sobha (up 0.79%), Indiabulls Real Estate (up 0.97%), Unitech (up 0.39%), Godrej Properties (up 0.27%), Housing Development & Infrastructure (HDIL) (up 0.29%) and Phoenix Mills (up 1.54%) edged higher.
IT stocks advanced. HCL Technologies (up 0.23%), TCS (up 1.46%), Infosys (up 0.76%), and Wipro (up 0.93%) edged higher. Tech Mahindra fell 0.53%.
Also Read
Lupin edged lower on media reports that a foreign brokerage has downgraded the stock to underperform from buy in the wake of observations by the United States Food and Drug Administration (USFDA) on the company's Goa facility. The stock dropped 3.61% to Rs 1,614. The had lost 4.23% to settle at Rs 1,674.50 yesterday, 17 March 2016. The foreign brokerage reportedly said that two out of nine observations by USFDA are critical in nature. The brokerage added that due to the USFDA observations, many pending approvals linked to the company's Goa plant may get delayed.
It may be recalled that Lupin had announced early this week that USFDA recently inspected its Goa facility and cited nine observations. Lupin said that the observations by USFDA were on aspects such as inadequacy and adherence to Standard Operating Procedures (SOPs). Lupin had said that it is in the midst of putting together a response to address the USFDA's observations.
Powered by Capital Market - Live News