A divergent trend was witnessed among the two key benchmark indices, with the barometer index, S&P BSE Sensex, trading with small losses and the Nifty 50 index trading with minuscule gains. At 10:15 IST, the Sensex, was down 11.88 points or 0.04% at 28,111.56. The Nifty was up 2.20 points or 0.03% at 8,675.45. The Sensex rose 88.86 points, or 0.32% at the day's high of 28,212.30 at the onset of trading session. The index fell 30.39 points, or 0.11% at the day's low of 28,093.05 in early trade. The Nifty rose 23.35 points, or 0.27% at the day's high of 8,696.60 at the onset of trading session, its highest level since 9 August 2016. The index fell 9.90 points, or 0.11% at the day's low of 8,663.35 in early trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,229 shares rose and 711 shares fell. A total of 116 shares were unchanged. The BSE Mid-Cap index was currently up 0.45%. The BSE Small-Cap index was currently up 0.46%. Both these indices outperformed the Sensex.
In overseas stock markets, gains in crude oil price failed to boost Asian stocks, with most markets trading in red. US stocks eked out gains yesterday, 18 August 2016, following upbeat earnings and forecast from Wal-Mart and as higher oil lifted energy shares. Crude oil prices rose overnight on weekly data showing decline in US stockpiles. There is also speculation that the Organization of the Petroleum Exporting Countries may cap production to support oil prices.
Shares of oil exploration and production companies gained along with gains in crude oil prices. Cairn India (up 1.68%), ONGC (up 0.33%) and Oil India (up 0.03%) edged higher. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) was down 0.45% to Rs 1,012. The stock hit a high of Rs 1,018 and a low of Rs 1,007.25 so far during the day.
Shares of public sector oil marketing companies slipped on rise in global crude oil prices. Indian Oil Corporation (down 0.34%), HPCL (up 0.5%) and BPCL (up 0.19%) edged lower. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent for October settlement was currently down 3 cents at $50.86 a barrel. The contract had risen $1.04 a barrel or 2.09% to settle at $50.89 a barrel during the previous trading session.
Most metal shares edged higher. National Aluminium Company (up 1.68%), Hindalco Industries (up 1.65%), Vedanta (up 1.01%), NMDC (up 0.98%), Steel Authority of India (up 0.62%), Jindal Steel & Power (up 0.29%), JSW Steel (up 0.23%) and Hindustan Copper (up 0.08%), edged higher. Tata Steel (down 0.06%), Bhushan Steel (down 1.07%) and Hindustan Zinc (down 1.14%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.14% at $2.1645 per pound on the COMEX.
UltraTech Cement rose 0.41% after the company announced a proposal to issue secured redeemable non-convertible debentures amounting Rs 500 crore on private placement basis. The announcement was made after market hours yesterday, 18 August 2016. The non-convertible debentures (NCDs) have tenure of 10 years and carry coupon of 7.53% per annum. The deemed date of allotment of NCDs is 22 August 2016 and the maturity date is 21 August 2026.
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