Stocks advance for 2nd straight session

The market ended higher for second straight session amid positive global cues. The barometer index, the S&P BSE Sensex, rose 142.09 points or 0.40% to 35,898.35, as per the provisional closing data. The Nifty 50 index rose 54.40 points or 0.51% to 10,789.85, as per the provisional closing data. Indices opened on a flat note and firmed up as the session progressed. The Nifty ended a tad below 10,800 mark.

Broader market outperformed the main stock indices. Among secondary barometers, the BSE Mid-Cap index rose 0.88%. The BSE Small-Cap index rose 1.07%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1579 shares rose and 971 shares fell. A total of 149 shares were unchanged.

Tata Motors (up 2.91%), Vedanta (up 2.75%), Bajaj Finance (up 1.99%), ONGC (up 1.87%), Sun Pharmaceutical Industries (up 1.81%) and ICICI Bank (up 1.56%), were the major Sensex gainers.

Yes Bank (down 1.22%), Infosys (down 0.9%), Coal India (down 0.72%), NTPC (down 0.51%), IndusInd Bank (down 0.5%) and Maruti Suzuki India (down 0.48%), were the major Sensex losers.

Tata Steel rose 1.39% to Rs 497.40 after Moody's Investors Service upgraded the company's corporate family rating by one notch to Ba2 from Ba3. The announcement was made after market hours yesterday, 20 February 2019.

Global ratings agency Moody's Investors Service upgraded Tata Steel's corporate family rating (CFR) by one notch to Ba2 from Ba3. The outlook is stable. Tata Steel's CFR is supported by its significant, diversified and growing operating base and its globally cost competitive steel operations in India, with the latter being a function of its ownership of key raw materials. These factors, alongside favorable industry dynamics in its key operating market in India have translated into the company's sustained track record of improving credit metrics.

Tech Mahindra rose 1.14% to Rs 821. The company announced during trading hours today, 21 February 2019, that its board approved the proposal to buyback upto 2.05 crore equity shares, or 2.10% equity, at Rs 950 each.

Dr Reddy's Laboratories rose 2.79% to Rs 2594 after the company announced the re-launch of a therapeutic equivalent generic version of Suboxone sublingual film, in the United States market. The announcement was made after market hours yesterday, 20 February 2019.

Dynamatic Technologies surged 3.53% to Rs 1341 after the company signed a Memorandum of Understanding (MoU) with Joint-Stock Company (JSC) Russian Helicopters on Ka-226T Helicopter with an intent to build major structural assemblies for fuselage and aggregate assembly, sub-assemblies and detail parts fabrication. The announcement was made after market hours yesterday, 20 February 2019.

Overseas, European shares were mixed, while most Asian shares ended higher after the US Federal Reserve signalled it would be patient on further interest rate increases and as trade talks between China and the United states seemed to progress.

US stock indices ended the choppy session moderately higher Wednesday, following the release of minutes from the US Federal Reserve's January meeting.

Fed minutes affirmed it would be "patient" on interest rate rises. Fed highlighted downside risks, including "the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions.

The minutes showed extensive discussion of market conditions, particularly on the emphasis that Fed actions were having on prices of risky assets like stocks and corporate bonds. The Fed also judged that a "patient" approach to interest rate hikes would be prudent as it continued to weigh various headwinds to growth.

On the trade front, President Donald Trump said Tuesday that the US may not increase tariffs on Chinese goods as scheduled after March 1, but he did raise the specter of addressing auto tariffs in Europe.

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