Key benchmark indices opened with strong gains as firmness in Asian stocks boosted sentiment. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 316.80 points or 1.27% at 25,466.13. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 88.60 points or 1.15% at 7,797.55. Auto and bank stocks led gains on the bourses. Data showing rebound in industrial production in February and easing of consumer price inflation in March also supported gains on the bourses. The India Meteorological Department (IMD) in its release of the long range forecast for the 2016 southwest monsoon predicted good monsoon this year.
The market breadth indicating the overall health of the market was very strong. On BSE, 1,117 shares rose and 189 shares fell. A total of 35 shares were unchanged. The BSE Mid-Cap index was currently up 1.02%. The BSE Small-Cap index was currently up 1.07%. Both these indices underperformed the Sensex.
In overseas stock markets, Asian stocks gained as rising crude prices buoyed energy producers and a weaker Japanese currency boosted shares in Tokyo. US stocks gained yesterday, 12 April 2016 led by energy companies after news reports said Saudi Arabia and Russia were working toward an agreement to cut oil production. The world's major crude oil producers led by Russia and Saudi Arabia have convened a meeting on Sunday, 17 April 2016, in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output. Saudi Arabia has said that it would freeze oil production only if Iran follows suit. Iran has ruled out freezing output until its production recovers to pre-sanction levels. Investors also worked through the initial batch of earnings from the first quarter of the year.
ICICI Bank (up 3.57%), Wipro (up 3.34%) and Bharti Airtel (up 2.56%) were the major gainers from the Sensex pack.
L&T gained 1.35% after the company announced that its subsidiary Larsen & Toubro Infotech (L&T Infotech) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) yesterday, 12 April 2016 in order to undertake an initial public offer (IPO) of its equity shares of face value of Re 1 each. The offer comprises of an offer for sale (OFS) of up to 1.75 crore equity shares by L&T. The announcement was made after market hours yesterday, 12 April 2016.
Mahindra & Mahindra (M&M) rose 1.91%. The company announced that credit rating agency ICRA has reaffirmed its rating of [ICRA] AAA (stable) and [ICRA] A1+ for non-convertible debenture programme and bank facilities of the company. The announcement was made after market hours yesterday, 12 April 2016.
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The India Meteorological Department (IMD) in its release of the long range forecast for the 2016 southwest monsoon season rainfall yesterday, 12 April 2016 said that the monsoon seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA) with a model error of 5%. The LPA of the seasonal rainfall over the country as a whole for the period 1951-2000 is 89 cm.
Among macro data, industrial production (IIP) rebounded 2% in February 2016 over February 2015, while snapping consistent decline for last three straight months. The mining output posted healthy 5.0% growth, while electricity generation improved 9.6% contributing to the overall growth in industrial output in February 2016. The output of the manufacturing sector also improved 0.7% in February 2016.
The inflation based on consumer price index (CPI) dipped to six month low of 4.83% in March 2016, while recording decline for second straight month. The CPI inflation had stood at 5.26% in February 2016, which is revised from the provisional figure of 5.18% released last month. CPI and IIP data were announced after market hours yesterday, 12 April 2016.
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