Key benchmark indices continued to trade with small gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, advanced 86.67 points or 0.26% at 33,565.02. The Nifty 50 index rose 19.50 points or 0.19% at 10,346.40. Firmness in global stocks underpinned sentiment.
The market had opened higher on firm Asian stocks and amid record closing for US stocks. However, key indices soon pared gains and slipped into the red. Indices regained positive terrain in mid-morning trade and traded in a narrow range in positive zone so far.
The S&P BSE Mid-Cap index declined 0.21%. The S&P BSE Small-Cap index rose 0.24%. Both the indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was slightly negative. On BSE, 1,328 shares fell and 1,283 shares rose. A total of 156 shares were unchanged.
Shares of most power generation and power distribution companies edged lower on profit booking after recent gains. GVK Power & Infrastructure (down 2.45%), NHPC (down 1.1%), Tata Power Company (down 1.67%), NTPC (down 0.55%), Reliance Infrastructure (down 0.97%) and Reliance Power (down 0.39%) declined. Torrent Power (up 0.3%), Adani Power (up 1.46%), and Power Grid Corporation of India (up 0.12%) gained.
Shares of footwear companies rose after reports suggested that Union Cabinet is soon expected to take a decision on Rs 2600 crore incentive package for the sector to boost exports and job creation. Bata India (up 0.14%), Relaxo Footwears (up 7.41%) and Liberty Shoes (up 0.9%) gained.
The ministry has sought tax incentives for the footwear, leather, and accessories development programme, according to a media report. The exports of leather and leather products dipped by about 9% to $ 369.24 million in October, report added.
Reliance Industries rose 0.01% after the company said that it has issued and allotted on private placement basis the sixth tranche of unsecured, non-convertible, redeemable debentures (PPD - Series F), aggregating to Rs 2500 crore. The PPD - Series F shall be redeemed at par at the end of 3 year 1 month 2 days from the date of allotment i.e. 24 December 2020. Coupon rate is 7.07% per annum. The announcement was made during market hours today, 22 November 2017.
Meanwhile, the cabinet reportedly today, 22 November 2017, gave approval to amend the Insolvency and Bankruptcy Code to prevent wilful defaulters from bidding for stressed assets.
Overseas, European stocks and Asian shares joined a global rally as strong world growth and rising corporate profits lured hordes of investors into equities.
US stock-market indexes ended at records and near session highs yesterday, 21 November 2017, finding support on another round of strong earnings, with technology shares leading the way. The Chicago Fed national activity index rose to 0.65 in October from 0.36 in September. Sales of previously-owned homes jumped to a seasonally adjusted annual pace of 5.48 million in October.
Janet Yellen, the outgoing chair of the Federal Reserve (Fed), reportedly said yesterday, 21 November 2017 that the Fed was still inclined to raise interest rates gradually as it sought to balance the risks of moving too fast and moving too slow. The Fed is widely expected to raise its benchmark rate by a quarter of a percentage point at its final policy meeting of the year in mid-December. The rate now sits in a range of 1% to 1.25%.
Yellen had earlier this week announced that she would step down from the Fed's board at the same time she ends her term as Fed chairwoman in early February. Jerome H. Powell is to succeed Yellen as the Fed's chairman.
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