Market holds firm

Firmness continued on the bourses in afternoon trade. At 13:20 IST, the barometer index, S&P BSE Sensex, was up 261.55 points or 1.07% at 24,731.12. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 91.80 points or 1.24% at 7,516.45. The Sensex and the Nifty, both, hit two-week high, with gains in global stocks boosting sentiment on the domestic bourses.

The Sensex rose 295.85 points or 1.21% at the day's high of 24,765.42 in early afternoon trade, its highest level since 15 January 2016. The barometer index fell 129.51 points or 0.52% at the day's low of 24,340.06 at the onset of the trading session, its lowest level since 22 January 2016. The Nifty rose 98.70 points or 1.32% at the day's high of 7,523.35 in early afternoon trade, its highest level since 15 January 2016. The index shed 21.85 points or 0.29% at the day's low of 7,402.80 at the onset of the trading session, its lowest level since 22 January 2016.

The market breadth indicating the overall health of the market was strong. On BSE, 1,467 shares gained and 909 shares fell. A total of 174 shares were unchanged. The BSE Mid-Cap index was currently up 1.32%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.75%, underpeforming the Sensex.

In overseas stock markets, Japanese and Chinese stocks led gains in Asian markets after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. In mainland China, the Shanghai Composite index settled 3.09% higher. In Hong Kong, the Hang Seng index was currently up 2.35%.

In Japan, the Nikkei 225 Average ended 2.8% higher. The BOJ said after the conclusion of a two-day monetary policy review that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.

Trading in US stock index futures indicated further gains for US stocks. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 147 points at the opening bell today, 29 January 2016. US stocks finished higher yesterday, 28 January 2016, boosted by a jump in oil prices along with an earnings-driven surge in the shares of Facebook Inc. and Under Armour Inc.

Index heavyweight and housing finance major HDFC was up 3.14% to Rs 1,184.20. The stock hit a high of Rs 1,187.60 and a low of Rs 1,145.60 so far during the day.

Index heavyweight and cigarette major ITC was up 0.97% to Rs 321.70. The stock hit a high of Rs 325.65 and a low of Rs 321.20 so far during the day.

Index heavyweight and IT major Infosys was up 1.78% to Rs 1,151.45. The stock hit a high of Rs 1,152 and a low of Rs 1,132 so far during the day.

Shares of key public sector firms edged higher. Coal India (up 4.78%), NHPC (up 3.70%), NMDC (up 3.12%), Power Grid Corporation of India (up 1.50%), GAIL (India) (up 1.40%), Bharat Heavy Electricals (Bhel) (up 1.39%), NTPC (up 0.73%), Rural Electrification Corporation (REC) (up 0.69%), Neyveli Lignite Corporation (up 0.62%), Power Finance Corporation (up 0.45%), Bharat Electronics (up 0.15%) and Steel Authority of India (up 0.12%) edged higher.

Shares of oil exploration and production stocks rose after a further recovery in crude oil prices. Oil India (up 0.32%) and ONGC (up 2.32%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.

Index heavyweight Reliance Industries (RIL) was up 1.78% to Rs 1,035.05. The stock hit a high of Rs 1,039.40 and a low of Rs 1,018.85 so far during the day.

Shares of public sector oil marketing companies (PSU OMCs) also gained. BPCL (up 3.17%), Indian Oil Corporation (up 1.54%) and HPCL (up 0.63%) edged higher.

In the global commodities markets, Brent for March settlement was currently up 83 cents at $34.72 a barrel. The contract had risen 79 cents or 2.39% to settle at $33.89 a barrel during the previous trading session.

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