A range bound movement was witnessed as key benchmark indices hovered in green in morning trade. At 10:22 IST, the barometer index, the S&P BSE Sensex, was up 74.91 points or 0.31% at 24,545.65. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 27.30 points or 0.37% at 7,451.95. The Sensex rose 168.06 points or 0.68% at the day's high of 24,637.63 in early trade, its highest level since 27 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 54.80 points or 0.73% at the day's high of 7,479.45 in early trade, its highest level since 25 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 positive. On BSE, 1,012 shares gained and 692 shares fell. A total of 100 shares were unchanged. The BSE Mid-Cap index was currently up 0.14%. The BSE Small-Cap index was currently up 0.07%. Both these indices underperformed the Sensex.
In overseas stock markets, Chinese stocks led gains in Asian markets after China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. The Shanghai Composite index was currently up 2%. In Hong Kong, the Hang Seng index was currently up 1.91%.
Japanese stocks were currently trading near the flat line amid high volatility after the Bank of Japan (BOJ) said today, 29 January 2016, after a two-day policy meeting that it would adopt a negative interest rate policy for the first time, as a sputtering economy, stubbornly low inflation and turbulent global financial markets threaten to undermine Prime Minister Shinzo Abe's economic-revival plan. The Nikkei 225 Average was currently up 0.01%. The BOJ said it 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 was to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
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.
Telecom stocks gained. Tata Teleservices (Maharashtra) (up 0.45%) and Idea Cellular (up 1.15%) gained. Reliance Communications was flat.
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Bharti Airtel fell 1.61% to Rs 286.60 after the company reported weak Q3 results. The stock was volatile. The stock hit high of Rs 296.65 and low of Rs 284.65 so far during the day. The company's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.
Meanwhile, Bharti Airtel and Axiata Group Berhad (Axiata) yesterday, 28 January 2016, signed a definitive agreement to merge their respective telecommunication subsidiaries in Bangladesh; namely, Airtel Bangladesh (Airtel) and Robi Axiata (Robi). The agreement follows the 9 September 2015 announcement of both parties entering into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.
Post-merger, the combined entity operating as Robi will serve approximately 4 crore customers. The joint strengths of Robi and Airtel will deliver the widest mobile network coverage across Bangladesh, strengthening its position in the mobile internet segment as well as consolidating its position as the second largest operator in the country, Bharti Airtel and Axiata said in a joint press release. The proposed transaction is subject to conditions precedent including receiving applicable approvals from relevant authorities and is expected to complete in the first half of 2016, the two companies said. Upon completion, Axiata will hold 68.3% controlling stake in the combined entity, while Bharti will hold 25%. The remaining 6.7% will be held by the existing shareholder, NTT DOCOMO of Japan.
Metal & mining stocks gained. Bhushan Steel (up 2.44%), Hindustan Copper (up 0.31%), Hindalco Industries (up 1.08%), Jindal Steel & Power (up 0.23%), Tata Steel (up 0.67%), Steel Authority of India (Sail) (up 0.58%), National Aluminum Company (up 1.02%) and NMDC (up 1.65%) gained. JSW Steel (down 0.7%) and Hindustan Zinc (down 3.6%) declined.
Vedanta jumped 4.76%, with the stock extending a rally during the previous trading session which materialized in the aftermath of the company's announcement of its third quarter results. The stock had risen 5.32% to settle at Rs 67.25 yesterday, 28 January 2016. The company's consolidated net profit slumped 99% to Rs 18 crore on 23% drop in revenue to Rs 14801 crore in Q3 December 2015 over Q3 December 2014. The sharp decline in bottom line was due to lower oil and metal prices. The result was announced during market hours yesterday, 28 January 2016.
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