Domestic shares ended higher for a second day on Wednesday, with power and metals shares in the lead. The Nifty closed a tad below 11,850 mark after crossing that level in the intraday. Trading in the domestic equity market was volatile as June 2019 derivative contracts expire on Thursday, 27 June 2019.
The key barometer, the S&P BSE Sensex, rose 157.14 points or 0.40% to 39,592.08. The index hit a high of 39,674.22 and a low of 39,319.64 in intraday.
The Nifty 50 index rose 51.10 points or 0.43% to 11,847.55. The index hit a high of 11,871.85 and a low of 11,757.55 in intraday.
The market breadth was positive. On the BSE, 1440 shares rose and 1051 shares fell. A total of 168 shares were unchanged.
In the broader market, the BSE Mid-Cap index rose 0.85% and the BSE Small-Cap index rose 0.47%.
Domestic investors are hoping for positive news on the domestic trade front in the backdrop of US Secretary of State Mike Pompeo holding talks with senior ministers in New Delhi.
US Secretary of State Mike Pompeo arrived New Delhi on Tuesday night on his three-day visit to the country to strengthen strategic ties between the two nations. Pompeo and India's External Affairs Minister S Jaishankar held a joint press conference today, after they met for a working lunch. Earlier in the day Pompeo met Prime Minister Narendra Modi and National Security Advisor Ajit Doval. This is his first high-level engagement with PM Modi-led NDA regime after Lok Sabha elections.
S Jaishankar reportedly said he is "very optimistic" on where the India-US trade relationship will head, in a joint press briefing in New Delhi. He said India needs constructive and pragmatic approach toward trade issues. India is committed to easier rules for US companies to do business, he added.
The two nations are "friends who can help each other all around the world," Pompeo told in the news conference. The current differences were expressed "in the spirit of friendship", he added.
On the equity front, Bajaj Finance rose 1.30% to settle at Rs 3627.60. It hit a 52-week high of Rs 3634.70 in intraday today.
ICICI Bank rose 1.14% to settle at Rs 438.60. It hit a 52-week high of Rs 439.95 in intraday today.
HDFC Asset Management Company rose 1.54% to settle at Rs 1979.20. The stock hit a 52-week high of Rs 1985 in intraday today.
Power Grid Corporation of India rose 4.12% to settle at Rs 209.85. The stock hit a 52-week high of Rs 211 in intraday today.
Among the sectoral indices on the BSE, the S&P BSE Metal index (up 2.88%), the S&P BSE Power index (up 2.16%) and the S&P BSE Utilities index (up 1.83%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE IT index (down 0.65%), the S&P BSE Teck index (down 0.6%) and the S&P BSE Telecom index (down 0.25%) underperformed the S&P BSE Sensex.
Metal stocks rose. Hindustan Copper (up 2.68%), Hindustan Zinc (up 4.27%), Hindalco Industries (up 2.79%), Jindal Steel & Power (up 5.87%), JSW Steel (up 4.1%), National Aluminium Company (up 2.14%), NMDC (up 1.35%), Steel Authority of India (up 4.47%), Tata Steel (up 2.59%) and Vedanta (up 4.4%) edged higher.
Power sector stocks advanced. Reliance Infrastructure (up 17.44%), Reliance Power (up 10.97%), Torrent Power (up 4.12%), Tata Power (up 3.7%), JSW Energy (up 3.58%), Jaiprakash Power Ventures (up 3.45%), GMR Infrastructure (up 1.66%), Adani Power (up 1.58%), NHPC (up 1.01%) and Coal India (up 0.79%) edged higher. CESC fell 0.58%.
NTPC gained 0.76%. NTPC had participated in the UPNEDA's tender for 500 MW Solar capacity with two bids of 20 MW each at Auraiya and Rihand. Reverse Auction was carried out on 25 June 2019 and NTPC has won entire 40 MW of Solar capacity bid by it at a levelised tariff of Rs 3.02/kWh applicable for 25 years. The projects shall be set up by NTPC under EPC mode and shall add to the installed capacity of NTPC. The announcement was made after market hours yesterday, 25 June 2019.
SpiceJet gained 3.23%. The company announced the launch of eight new non-stop international flights from the country's busiest metros of Mumbai and Delhi. SpiceJet will service Mumbai-Riyadh-Mumbai, Mumbai-Dhaka-Mumbai, Delhi-Dhaka-Delhi and Delhi-Jeddah-Delhi with daily non-stop flights. The announcement was made after market hours yesterday, 25 June 2019.
Dewan Housing Finance Corporation rose 5.77%. The company said it has defaulted payment towards maturity on unsecured commercial paper dues to the tune of Rs 225 crore. The company said that the amount shall be paid over the next couple of days. The announcement was made after market hours yesterday, 25 June 2019.
Edelweiss Financial Services rose 4.93%. ICRA re-affirmed the credit rating of commercial paper programme as [ICRA]A1 + assigned to the Rs 6,350 crore commercial papers and short-term non-convertible debenture programme of Rs 100 crore of the company. The rating of [ICRA]Al + indicates very strong degree of safety regarding timely payment of financial obligations. The rating of [ICRA]AA on Non-convertible Debentures Programme of Rs 466 crore of the company now stands as [ICRA]AA-. Rating of [ICRA] AA-indicates high degree of safety regarding timely payment of financial obligations carrying very low credit risk. The announcement was made before the market hours today, 26 June 2019.
Reliance Infrastructure jumped 17.44%. The company bagged a Rs 7,000 crore Versova-Bandra Sea Link (VBSL) project in Mumbai. The company will deliver the project in 60 months from the appointed date of 24 June 2019 as per the contract. VBSL is a marquee project with a length of 17.17 km, which is three times the length of the Bandra-Worli Sea Link of 5.6 km. The announcement was made during the market hours today, 26 June 2019.
Signet Industries rose 2.78%. Signet Industries announced that it has received orders worth Rs 190 crore recently from L&T, Tata Projects and GA Infra. These orders are for high pressure pipelines and uPVC pipelines to be used in various infrastructure projects in Madhya Pradesh, and Rajasthan. Supplies for some orders have started and the company shall complete the orders well within contracted time period. The announcement was made during the market hours today, 26 June 2019.
Shares of most public sector oil marketing companies (PSU OMCs) dipped as Brent crude oil price increased. Bharat Petroleum Corporation (down 0.53%) and Hindustan Petroleum Corporation (down 2.57%) advanced.Only Indian Oil Corporation (up 0.62%) advanced.
Higher crude oil prices could increase under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the commodities market, Brent crude for August 2019 settlement rose 80 cents at $65.85 a barrel. The contract rose 19 cents or, 0.29% to settle at $65.05 a barrel in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 69.1750, compared with its close of 69.36 during the previous trading session.
Overseas, most European shares were trading higher, while most Asian shares declined on Wednesday after US Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.
US stocks slid lower Tuesday after Federal Reserve Chairman Jerome Powell said the central banks was still monitoring the economy for signs of weakness and would seek to avoid a knee-jerk reaction in terms of cutting benchmark interest rates.
Fed Chair Jerome Powell noted the Fed will take a wait-and-see approach given how rapid recent economic changes have been. Powell on Tuesday also said the central bank is insulated from short-term political pressures, pushing back against US President Donald Trump's demand for a significant rate cut.
Meanwhile, investors looked toward developments on the US-China trade front, with Presidents Donald Trump and Xi Jinping set to meet at the G-20 summit later this week. Investors are also watching the Middle East, with continuing tensions between the US and Iran. Iran said Trump's decision Monday to impose additional sanctions on Iran had closed the door to diplomatic negotiations.
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