Key benchmark indices rose in volatile trading session. The barometer index, the S&P BSE Sensex, rose 94.65 points or 0.38% to 24,717.99, as per the provisional closing data. The 50-unit Nifty 50 index rose 24.05 points or 0.32% to 7,510.20, as per the provisional closing data.
The Sensex rose 194.46 points or 0.78% at the day's high of 24,817.80 in mid-morning trade. The barometer index fell 71.08 points or 0.28% at the day's low of 24,552.26 in early afternoon trade. The Nifty rose 57.80 points or 0.77% at the day's high of 7,543.95 in morning trade. The index fell 25.55 points or 0.34% at the day's low of 7,460.60 in early afternoon trade.
In overseas stock markets, European stocks firmed up as sentiment improved after European Central Bank (ECB) announced stimulus yesterday, 10 March 2016. Asian stocks edged higher, reversing initial decline as investors digested fresh easing from ECB. US stocks closed slightly lower yesterday, 10 March 2016, under pressure from low oil prices and concerns about the effectiveness of monetary policy following the announcements from ECB.
The ECB delivered a surprise package of measures to kick start Europe's economy by cutting its main interest rates and expanding its massive bond-buying program. The ECB cut the bank's key lending rate to zero from 0.05% and cut its bank deposit rate, from minus 0.3% to minus 0.4%. It also announced it would expand the size of its monthly bond purchases to 80 billion euros from its current level of 60 billion euros beginning in April 2016 and expand the scope of those purchases to include investment-grade, euro-denominated, nonbank corporate bonds.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,476 shares declined and 1,093 shares rose. A total of 156 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.08%. The BSE Small-Cap index provisionally fell 0.16%. Both these indices underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 0.35% to Rs 1,015.50. The stock hit a high of Rs 1,029.50 and a low of Rs 1,011.30 in intraday trade.
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Index heavyweight and cigarette major ITC rose 1.72% to Rs 321.50. The stock hit a high of Rs 322 and a low of Rs 315.10 in intraday trade.
Index heavyweight and IT major Infosys fell 0.52% to Rs 1,140. The stock hit a high of Rs 1,156.10 and a low of Rs 1,139 in intraday trade.
Index heavyweight and engineering & construction major L&T rose 0.10% to Rs 1,187.20. The stock hit a high of Rs 1,201.45 and a low of Rs 1,172.80 in intraday trade.
Index heavyweight and housing finance major HDFC fell 0.28% to Rs 1,149.35. The stock hit a high of Rs 1,166.95 and a low of Rs 1,147 in intraday trade.
Most metal shares edged lower. Hindustan Copper (down 1.43%), Vedanta (down 0.91%), National Aluminium Company (down 0.9%), Steel Authority of India (down 0.7%), Tata Steel (down 0.68%), Bhushan Steel (down 0.55%), Hindalco Industries (down 0.12%) and JSW Steel (down 0.08%), edged lower. NMDC (up 0.05%) and Hindustan Zinc (up 0.89%), edged higher.
Shares of Jindal Steel & Power (JSPL) fell 4.79% to Rs 62.65. In the backdrop of various media reports about the company's weak financials, JSPL in a press release issued after market hours yesterday, 10 March 2016, said that the company's investment in enhancing steel capacities in Angul and power capacity in Jindal Power (JPL) Tamnar have been completed/commissioned and are in stable level of operation. With these additional capacities and better outlook for steel demand/fair sales price realisation and better outlook for power demand/realization, JSPL said it will be in a better position to generate higher cash flows as compared to last four quarters. The company's efforts in bringing cash through divestment of assets and strategic collaborations through joint ventures (JVs) will add to its cash flows, and also result in reduction in bank borrowings, JSPL said. The company added that it has an excellent track record of meeting all its financial commitments and recent reduction in credit rating, in its opinion, merely presents rating downgrade on technical grounds. JSPL said it had met all its financial commitments till November-December 2015. In discussion with banks, the company has launched 5/25 scheme, and also exploring various options with all lenders to reschedule payments considering likely short/medium term cashflow mis-matches, JSPL said. When these are completed, there will not be any overdue situation, the company added.
Considering better cash flow outlook from better demand/realization for steel/power, rescheduled financial commitments through 5/25 scheme and others and cash flow from disinvestments/JVs, JSPL will be in much stronger position to meet all its liabilities and emerge as financially strong and sustainable company in 2016-17, the company said in a statement.
Meanwhile, the High Grade Copper for May 2016 delivery was currently up 0.95% at $2.241 per pound on the COMEX.
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