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Benchmark indices extended gains in late morning trades led by information technology shares amid encouraging comments from the US Federal Reserve while oil and gas shares also firmed up after the recent correction.
At 11:30AM, the 30-share Sensex was up 150 points at 27,248 and the 50-share Nifty was up 44 points at 8,134
In the broader market, both BSE Mid cap and Small cap indices have gained around 0.3% each
Market breadth is positive with 1,343 advances against 1,049 declines.
Asian Market
Asian markets continue to trade mixed. Nikkei shares have risen to a fresh three-week high on optimism about the U.S. economy and is up by around 0.8%, boosted also by impressive corporate earnings and a weaker Yen. Hang Seng has declined 0.6% on gloomy company results while Shanghai Composite has gained around 0.1% after the State Council, China's cabinet, said on Wednesday it will promote consumption in six sectors, including e-commerce, new energy, housing, tourism, education and sport.
Sectors and stocks
BSE Realty index has gained the most at around 3% followed by BSE IT index at 2% while BSE Auto and Power indices are among the losers.
Among IT shares, Infosys and TCS have gained around 1.8% each while Wipro has gained above 1%. Shares of IT exporters which earn major part of their revenues from exports to the US firmed up post US Federal Reserve Bank's encouraging comments about the US economy.
Tech Mahindra is up over 4% after its reported encouraging July-September quarter earnings backed by strong growth in the US and better client mining.
Among pharma shares, Dr Reddy’s has rebounded after closing weak yesterday and is gaining more than 1% while Sun Pharma has gained around 0.2% and Cipla is flat.
Auto shares are down on profit booking. M&M has lost more than 1% and Tata Motors has declined around 0.6% while Bajaj Auto is flat along with Maruti Suzuki which is under pressure ahead of its quarter earnings to be released later today.
Among bank shares, SBI Bank has lost 0.3% after two of its listed associates State Bank of Travancore and State Bank of Bikaner and Jaipur posted dismal quarterly results mainly on account of higher provisioning. ICICI Bank is trading flat ahead of its quarter earnings results. HDFC Bank is flat too while Axis Bank has lost around 0.4%.
Cement majors ACC and Ambuja are up 0.8-1.2% each while telecom major Bharti Airtel is down 0.6% ahead of their second quarter earnings due for release later today.
Oil and Gas shares also witnessed buying at lower levels after the recent correction. Reliance Industries, ONGC and GAIL were up 0.7-1% each. Reliance is seen to be benefitting from diesel deregulation as it can allow the company to revive its retail outlets. According to a Business Standard report which quoted the retailers, the company has decided to re-open the company-owned pumps first and it will spend Rs 50 lakh on renovating each one of them.
Among Sensex heavyweights, ITC has lost around 0.2%. The company’s plan to develop a market for e-cigarettes is set to hit a roadblock with the Union health ministry planning to impose a ban on all products described as “Electronic Nicotine Delivery Systems (ENDS)”.
Shares of real estate companies are trading higher by up to 6% after the government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. The move will boost affordable housing projects and smart cities across the country.
Among other shares, Gati Ltd has surged around 3.7% after reporting a 117% increase in its net profit to Rs 12.49 crore for the quarter ended September 2014, as compared with a profit of Rs 5.76 crore in the corresponding quarter previous year.
Insecticides (India) has surged 5% ahead of the company’s board of directors meeting today to consider issue of free shares to its equity shareholders.
