Key indices extended initial gains and hit fresh intraday high in morning trade as the Government promulgating the ordinance to amend the Insolvency and Bankruptcy Code, 2016 perked up sentiment. At 10:20 IST, the barometer index, the S&P BSE Sensex, advanced 120.50 points or 0.36% at 33,708.58. The Nifty 50 index rose 41.15 points or 0.4% at 10,389.90.
The S&P BSE Mid-Cap index rose 0.55%. The S&P BSE Small-Cap index advanced 0.63%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,390 shares rose and 673 shares declined. A total of 104 shares were unchanged.
IT stocks were mixed. Tech Mahindra (up 1.79%), HCL Technologies (up 0.8%), and Infosys (up 1.48%) edged higher. Oracle Financial Services Software (down 0.19%), TCS (down 0.13%) and Wipro (down 0.44%) declined.
Most capital goods stocks gained. Havells India (up 1.54%), BEML (up 0.24%), Bharat Electronics (up 0.48%), L&T (up 0.28%), Thermax (up 1.65%), and Siemens (up 0.74%) gained. Bharat Heavy Electricals (Bhel) (down 0.22%) and ABB India (down 0.23%) declined.
Swaraj Engines jumped 13.49% after the company said that a meeting of its board of directors will be held on 28 November 2017, to consider the proposal of buyback of equity shares of the company. The announcement was made after market hours yesterday, 23 November 2017.
Cox & Kings rose 2.67% after the company said MEININGER Hotels and Peter Simmel will open a hotel in Germany. The announcement was made after market hours yesterday, 23 November 2017. Cox & Kings said that the company-owned MEININGER Hotels and Peter Simmel signed an agreement for opening a hotel in Dresden in Germany. The 165 rooms and 639 beds hotel is scheduled to open in the second quarter of 2021.
MEININGER is a subsidiary of Holidaybreak, a travel group specialising in educational and activity holidays. Holidaybreak is a subsidiary of Prometheon Holdings (UK), which is a part of Cox & Kings. MEININGER currently operates 17 hybrid hotels in Europe, with a total of 8,409 beds in 11 European cities.
On the macro front, the Government of India promulgated yesterday, 23 November 2017, the ordinance to amend the Insolvency and Bankruptcy Code, 2016. Earlier, the President of India had given his assent to the ordinance to amend the code.
The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code. The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company.
In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the committee of creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers.
Overseas, Asian stocks were mixed while investors viewed Chinese shares with caution after their big fall the previous day. Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) rose to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.
US stock markets remained closed yesterday, 23 November 2017 on account of Thanksgiving holiday.
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