Key benchmark indices hovered in narrow range in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 238.41 points or 0.84% at 28,745.83. The Nifty 50 index was currently up 76 points or 0.87% at 8,853.15. Gains in global markets aided the upmove on the domestic bourses.
In overseas stock markets, European shares edged higher mirroring gains in the US market and Asia, after the US Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018. Asian stocks edged higher tracking gains in US markets overnight. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. Concluding a two-day meeting, the Federal Open Market Committee (FOMC) announced that the federal funds rate will remain at 0.25% to 0.5%. The Fed also said risks to the economy have diminished since its last meeting in July. The Fed last raised rates in December 2015, the first hike in almost a decade.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,579 shares rose and 1,011 shares declined. A total of 202 shares were unchanged. The BSE Mid-Cap index was currently up 0.86%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.73%, underperforming the Sensex.
Aurobindo Pharma jumped 4.55% to Rs 842.85 after the company during trading hours today, 22 September 2016, said it received tentative approval of Dolutegravir 50mg from US Food & Drug Administration (USFDA) for the treatment of HIV. This important milestone marks the first FDA approval of a generic version of Dolutegravir (DTG), an integrase strand transfer inhibitor recommended for use in treatment-nae patients by the US Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). Through an innovative collaboration with ViiV and the Clinton Health Access Initiative, Inc. (CHAI), the product is expected to be launched in sub-Saharan Africa in late 2016. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tivicay, of ViiV Healthcare. ViiV Healthcare and Aurobindo Pharma signed a licensing agreement in 2014 that allows Aurobindo Pharma to supply Dolutegravir 50mg in 92 licensed countries, following completion of required local regulatory approval processes.
Most metal shares edged higher as copper price edged higher in the global commodities markets. Hindalco Industries (up 2.35%), Steel Authority of India (up 1.46%), Hindustan Copper (up 1.34%), Tata Steel (up 1.08%), Vedanta (up 1%), Jindal Steel & Power (up 0.99%), Hindustan Zinc (up 0.84%), JSW Steel (up 0.35%) and NMDC (up 0.29%), edged higher. Bhushan Steel (down 0.12%) and National Aluminium Company (down 1.19%), edged lower.
High Grade Copper for December 2016 delivery was currently up 0.97% at $2.176 per pound on the COMEX.
Also Read
Shares of oil production and exploration firms rose as global crude oil prices rose. Reliance Industries (RIL) (up 1.90%), ONGC (up 1.27%) and Oil India (up 0.74%) and Cairn India (up 0.52%), edged higher. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.
In global commodities markets, Brent crude oil futures extended previous session's gains after report showed a third consecutive weekly drop in US crude oil inventory. Brent for November settlement was currently up 46 cents at $47.29 a barrel. The contract had risen 95 cents or 2.07% to settle at $46.83 a barrel during previous trading session. A report from the US Energy Information Administration (EIA) showed a 6.2 million-barrel drop in crude oil inventories last week to 504.6 million barrels. Brent was also lifted by an oil workers' strike in Norway, which threatened to cut North Sea crude output.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 1.81%), HPCL (up 1.32%) edged higher.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
State-run gas distributor GAIL (India) (up 1.4%) and Indian Oil Corporation (IOC) (up 0.72%), edged higher after signing a memorandum of understanding (MoU) with Dhamra LNG Terminal (DLTPL) for taking equity in the 5 million metric tonnes per annum (MMTPA) capacity liquified natural gas (LNG) receiving, storage and regasification terminal being put up at Dhamra Port, Odisha. As per the MoU, DLTPL shall be an equal joint venture (JV) of IOCL and GAIL (India) on one hand and Adani Group on the other. IOCL and GAIL (India) would acquire 39% and 11% equity respectively in DLTPL with the balance 50% being held by Adani group. Going forward, IOCL and Adani group will each divest 1% of their respective stake to a credible financial institution which will then have 2% stake in the terminal. Apart from equity, IOCL and GAIL (India) intend to book regasification capacity of 3 and 1.5 MMTPA respectively in the terminal.
The LNG Terminal would meet the gas requirements of three oil refineries of IOCL situated in Barauni, Haldia and Paradip. The three fertilizers plants at Barauni, Sindri and Gorakhpur which are being revived by Govt. of India will also benefit from this terminal. The natural gas from the terminal would also be supplied to various City Gas Distribution networks coming up in eastern India, which in turn would cater to the requirements of piped gas for households, CNG for automobiles and clean fuel requirements of commercial establishments and industries. It is, therefore, expected that once operational, Dhamra LNG terminal will emerge as a bridge to prosperity for the entire eastern India.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content