A bout of volatility was witnessed as key benchmark indices trimmed gains in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 136.06 points or 0.55% at 24,818.54. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was up 52.20 points or 0.7% at 7,550.95. Gains in global stocks aided the upmove on the domestic bourses. World stocks rose after the US Federal Reserve slashed its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review yesterday, 16 March 2016.
The Sensex rose 91.77 points or 0.37% at the day's low of 24774.25 in mid-afternoon trade. The barometer index rose 265.82 points or 1.07% at the day's high of 24,948.30 in early trade, its highest level since 14 March 2016. The Nifty rose 41.30 points or 0.55% at the day's low of 7,540.05 in mid-afternoon trade. The index hit its highest level in more than six-weeks when it rose 86.55 points or 1.15% at the day's high of 7,585.30 in early trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,503 shares rose and 976 shares fell. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently up 0.85%. The BSE Small-Cap index was currently up 0.62%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian and European stocks edged higher after the US Federal Reserve after its monetary policy review yesterday, 16 March 2016, reduced the number of interest rate hikes expected this year. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.
US stocks rose yesterday, 16 March 2016, in the aftermath of the Fed statement. The Fed concluded a two-day policy meeting by leaving interest rates untouched, as expected, and signalling fewer rate hikes in coming months as the United States continues to face risks from an uncertain global economy. In light of the current shortfall of inflation from 2 percent, the committee will carefully monitor actual and expected progress toward its inflation goal, the Fed said in a statement. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation, it said.
Cement stocks surged on renewed buying. ACC (up 3.63%), Shree Cement (up 2.1%), Ambuja Cements (up 6.41%), and UltraTech Cement (up 2.16%) gained.
Grasim Industries advanced 1.74%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
GAIL (India) surged after piped and natural gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) raised the tariff on GAIL's K.G. Basin natural gas pipeline network sharply to Rs 45.32 per mmbtu on Gross Calorific Value (GCV) basis from Rs 5.56 per mmbtu with effect from 1 April 2016. The stock rose 4.46%. PNGRB in its tariff order set tariff at Rs 5.56 per mmbtu for the K.G. Basin natural gas pipeline for the period from 20 November 2008 to 31 March 2016 and Rs 45.32 per mmbtu for the period from 1 April 2016 to 11 February 2017. The economic life of GAIL's K.G. Basin natural gas pipeline ends on 11 February 2017.
Maruti Suzuki India rose 0.66%. The company announced that the board of directors of the company at a meeting held today, 17 March 2016, has approved the re-appointment of Kenichi Ayukawa as Managing Director & CEO for a period of three years from 1 April 2016. The board also approved re-appointment of Toshiaki Hasuike as Joint Managing Director for a period of three years from 27 April 2016. The announcement was made during trading hours today, 17 March 2016.
TCS rose after the company announced a three year partnership with the Virgin Money London Marathon to enhance the digital experience delivered to marathon participants. The stock rose 0.78%. Under the terms of the partnership, TCS will become the race's official technology partner for the 2016, 2017 and 2018 events. The announcement was made during trading hours today, 17 March 2016.
Separately, TCS announced the successful launch of Norway's first peer-to-peer mobile payment solution with DNB, the largest financial services group in Norway. With 25% of Norway's population using DNB's peer-to-peer mobile payments application 'Vipps' within six months of launch, the P2P payment solution has helped DNB become a significant player in the highly competitive mobile payments space in a short space of time. The announcement was made after trading hours yesterday, 16 March 2016.
Pharma stocks declined on firm rupee. Glenmark Pharmaceuticals (down 1.85%), Cipla (down 0.45%), Dr Reddy's Laboratories (down 0.34%), Cadila Healthcare (down 0.35%), Lupin (down 2.68%), Divi's Laboratories (down 0.26%), and Sun Pharmaceutical Industries (down 0.79%) declined. Aurobindo Pharma (down 1%). Firmness in rupee could adversely affect sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
In the foreign exchange market, the partially convertible rupee was currently hovering at 66.69, compared with closing of 67.23 during the previous trading session.
BF Utilities rose 2.22% after the company acquired 100% shareholding in Avichal Resources Pvt. Ltd. With this acquisition, Avichal Resources has become a wholly owned subsidiary of the company, BF Utilities said. Avichal Resources is the owner of land required for BF Utilities's existing wind farm located at Satara district, the company said. With the acquisition of Avichal Resources, the company has strengthened these wind farm assets, BF Utilities said. The announcement was made during market hours today, 17 March 2016.
Meanwhile, Finance Minister Arun Jaitley was today, 17 March 2016, quoted as saying that it would be difficult for the government to accept the opposition Congress party's demand to cap the goods and services tax (GST) rate in the GST constitution amendment bill stuck in parliament. The Congress wants Jaitley to cap the rate of GST at less than 20%. Considered as a major indirect tax reform in the country, GST aims to remove barriers across states and unite the country into a common market. GST will subsume central indirect taxes such as excise duty and service tax at the central level and value added tax at the state level besides other local levies such as octroi and entry tax.
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