A bout of volatility was witnessed in morning trade as key benchmark indices trimmed losses after slipping into the negative terrain from positive terrain. At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 29.41 points or 0.08% at 24,653.50. The Nifty 50 index was currently down 6.45 points or 0.09% at 7,548.75. The Sensex hit 3-1/2-week low when it lost 73.19 points or 0.29% at the day's low of 24,600.65 in morning trade. The barometer index rose 117.52 points or 0.47% at the day's high of 24,791.36 at the onset of the trading session, its highest level since 7 April 2016. The Nifty lost 20.25 points or 0.26% at the day's low of 7,534.95 in morning trade. The index rose 25.60 points or 0.33% at the day's high of 7,580.80 at the onset of the trading session, its highest level since 7 April 2016.
The market breadth indicating the overall health of the market was positive. On BSE, 1,011 shares rose and 736 shares fell. A total of 84 shares were unchanged. The BSE Mid-Cap index was currently up 0.31%. The BSE Small-Cap index was currently up 0.23%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks witnessed a mixed trend. US stocks registered small gains during the previous trading session on Friday, 8 April 2016, as yen eased from its highest level against the dollar in almost 18-months after Japan's finance minister Taro Aso said he may act against what he termed one-sided yen rise. The yen, typically viewed as a safe-harbor asset, edged higher as fears that global central banks won't be able to fix the sluggish global economy sapped investor sentiment and spurred a flight to perceived safety. Meanwhile, New York Fed President William Dudley on Friday, 8 April 2016, said that the US central bank must maintain a cautious and gradual approach to raising interest rates.
L&T gained after the company announced that L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of the company has won two orders valued approximately $370 million from Petroleum Development Oman LLC. The announcement was made during market hours today, 11 April 2016. The stock rose 0.79%.
Telecom stocks gained. Tata Teleservices (Maharashtra) (up 0.45%), Reliance Communications (up 1.09%) and Idea Cellular (up 0.37%) gained.
Bharti Airtel rose after the company said it will pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles. The stock gained 2.83%. Bharti Airtel and its subsidiary, Bharti Hexacom, have entered into a definitive agreement with Aircel and its subsidiaries Dishnet Wireless and Aircel Cellular (together Aircel) to acquire rights to use 20 megahertz (MHz) 2300 Band 4G TD spectrum for eight circles namely, Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh and Orissa at an aggregate consideration of Rs 3500 crore.
The spectrum was allotted to Aircel and Dishnet by the Government of India, Ministry of Communication & IT, Department of Telecommunication (DoT) and is valid upto 20 September 2030. The transfer of the right to use for the circles of Andhra Pradesh and Orissa is subject to the revision of spectrum caps with the upcoming auction to be conducted by DoT. With the rights to use 4G spectrum of Aircel in eight telecom circles, Bharti Airtel will become pan India 4G operator. The announcement was made after market hours on Friday, 8 April 2016.
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Shares of oil exploration and production (E&P) companies edged higher after surge in crude oil prices. Cairn India (up 1.21%), ONGC (up 1.29%) and Oil India (up 0.54%) rose. Higher crude oil prices could result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries was up 0.25% at Rs 1,040.40. The stock hit a high of Rs 1,045 and a low of Rs 1,034.20 so far during the day.
In the global commodities markets, crude oil futures edged higher following a decline in US inventories and drilling, outages and hopes that exporters could freeze output. Brent for June settlement was currently up 12 cents at $42.06 a barrel. The contract had jumped $2.51 a barrel 6.36% to settle at $41.94 a barrel during the previous trading session.
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.
Shares of public sector oil marketing companies (PSU OMCs) also gained. BPCL (up 0.45%), HPCL (up 0.89%) and Indian Oil Corporation (IOC) (up 1.04%) gained.
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