A range bound movement was witnessed as key benchmark indices traded higher in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 185.60 points or 0.73% at 25,506.04. The 50-unit Nifty 50 index was up 55 points or 0.71% at 7,755.90. The Sensex and the Nifty, both, hit their highest level in more than a week. The Sensex rose 203.54 points or 0.8% at the day's high of 25,523.98 in mid-morning trade, its highest level since 8 December 2015. The Nifty rose 63.15 points or 0.82% at the day's high of 7,764.05 in morning trade, its highest level since 8 December 2015.
Gains in overseas stocks underpinned sentiment on the domestic bourses. Asian stocks edged higher after overnight gains for US stocks. Energy sector stocks led gains in US markets yesterday, 15 December 2015, as crude oil prices rose. Meanwhile, the US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting today, 16 December 2015. With markets having already priced in a 25 basis points rate hike this week, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. The US central bank has hinted that it intends to hike rates gradually.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,537 shares rose and 647 shares fell. A total of 163 shares were unchanged. The BSE Mid-Cap index was currently up 0.91%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.72%, underperforming the Sensex.
Shares of oil exploration and production firms edged higher. Cairn India (up 4.22%), ONGC (up 2.66%), Oil India (up 1.99%) and Reliance Industries (up 0.57%) edged higher.
Shares of public sector oil marketing companies (PSU OMCs) also moved higher. HPCL (up 2.26%), BPCL (up 2.24%) and Indian Oil Corporation (up 2.50%) edged higher. PSU OMCs have reduced the price of petrol by 50 paise a litre and diesel price by 46 paise a litre in Delhi with corresponding price revision in other states with effect from the midnight of 15 December 2015.
In the global commodities markets, Brent for January settlement was currently down 14 cents at $38.31 a barrel. The contract had risen 53 cents or 1.40% to settle at $38.45 a barrel during the previous trading session. Brent for February settlement was currently down 14 cents at $38.59 a barrel. The Brent January contract expires today, 16 December 2015.
Shares of public sector companies were in demand. GAIL (India) (up 4.67%), Bharat Electronics (up 2.23%), Power Grid Corporation of India (up 1.74%), NTPC (up 1.67%), NMDC (up 1.53%) and Coal India (up 0.33%) edged higher.
Bharat Heavy Electricals (Bhel) rose 2.17% after the company after market hours yesterday, 15 December 2015, announced that it has added one more coal-based power plant to the grid by successfully commissioning a 500 megawatts (MW) thermal generating unit in West Bengal. The 500 MW (unit 3) was commissioned at the upcoming Sagardighi thermal power extension project of West Bengal Power Development Corporation (WBPDCL), located at Murshidabad district of West Bengal. This is the first unit of phase II (2x500 MW) of the power plant and the second unit is also in advance stage of completion, Bhel said. The company said it has already commissioned 3,750 MW of power plants in the utility sector in the current financial year and is on track to achieve the target set by the government for the year.
Bank stocks edged higher. Among private sector banks, ICICI Bank (up 1.97%), IndusInd Bank (up 1.81%), Yes Bank (up 1.77%), Kotak Mahindra Bank (up 1.69%), Axis Bank (up 0.93%), Federal Bank (up 0.75%) and City Union Bank (up 0.33%) edged higher.
HDFC Bank rose 0.87% after the bank issued and allotted senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures amounting to Rs 2975 crore on a private placement basis. The bank made the announcement after market hours yesterday, 15 December 2015.
Among PSU banks, Union Bank of India (up 1.89%), Andhra Bank (up 1.70%), Indian Bank (up 1.44%), Allahabad Bank (up 1.41%), Bank of India (up 1.38%), Punjab and Sind Bank (up 1.21%), Syndicate Bank (up 1.18%), United Bank of India (up 1.13%), IDBI Bank (up 1.09%), Vijaya Bank (up 1.03%), Canara Bank (up 1%), Bank of Maharashtra (up 0.95%), State Bank of India (up 0.95%), UCO Bank (up 0.93%), Dena Bank (up 0.85%), Punjab National Bank (up 0.49%), Bank of Baroda (up 0.16%) and Central Bank of India (up 0.07%), edged higher. Corporation Bank was down 0.37%.
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