Key benchmark indices edged higher in early trade on positive Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 90.83 points or 0.33% at 27,717.52. The Nifty 50 index was currently up 24.30 points or 0.29% at 8,492.20
In overseas stock markets, Japanese stocks led gains in Asian markets after Prime Minister Shinzo Abe's Liberal Democratic Party (LDP) recorded a landslide victory in parliamentary elections over the weekend. The dominating win could provide the Japanese prime minister with a mandate to propose sweeping constitutional reforms in the coming months. Already, Abe unveiled a comprehensive 10 trillion yen ($98 billion) stimulus plan yesterday, 11 July 2016 aimed at bolstering growth through a wide range of public works programs. As a result, the Nikkei had surged about 4% yesterday, 11 July 2016.
US stocks rose yesterday, 11 July 2016 with the S&P 500 Composite index hitting an all-time intraday and closing highs, as investors bought stocks amid a reinvigorated appetite for assets perceived as risky following a surprisingly strong jobs report on Friday, 8 July 2016.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 932 shares rose and 456 shares declined. A total of 54 shares were unchanged. The BSE Mid-Cap index was currently up 0.42%. The BSE Small-Cap index was currently up 0.36%. Both these indices outperformed the Sensex.
Axis Bank (up 1.75%), Tata Steel (up 1.48%) and Maruti Suzuki India (up 1.12%) edged higher from the Sensex pack.
Index heavyweight and housing finance major HDFC rose 0.84% after the company announced after market hours yesterday, 11 July 2016 that it will issue its first unrated synthetic rupee denominated Notes aggregating Rs 2000 crore with an option to retain oversubscription of upto Rs 1000 crore. The bonds will bear a fixed coupon and will have a tenor of 3 years and 1 month. The company proposes to list the Notes on the London Stock Exchange. Pricing will take place on or before 15 July 2016, subject to market conditions. The settlement shall be in the next week.
Coal India dropped 1.72% to Rs 315 after the company announced that its board of directors at a meeting held yesterday, 11 July 2016, approved the buyback of equity shares not exceeding 10.89 crore shares of the company, from all the shareholders holding equity shares of the company as on record date on a proportionate basis through the tender offer route at a price of Rs 335 per share payable in cash for an aggregate consideration not exceeding Rs 3650 crore which is not exceeding 25% of the aggregate fully paid up share capital and free reserves of the company as per audited accounts of the company for the financial year ended 31 March 2016. The announcement was made after market hours yesterday, 11 July 2016.
Tata Power Company slipped 0.61%. The company announced that its board of directors at a meeting held yesterday, 11 July 2016, approved issuance in one or more tranches, of non-cumulative, redeemable, taxable, listed, rated securities in the form of non-convertible debentures upto an aggregate amount not exceeding Rs 3500 crore and for tenor not exceeding 3 years (debentures) from the date of issue on private placement basis to any persons, entities, bodies corporate, companies, banks, financial institutions and any other categories of eligible investors permitted to invest in the debentures under applicable laws. The announcement was made after market hours yesterday, 11 July 2016.
Among macro economic data, the government will announce data on industrial production for May 2016 after market hours today, 12 July 2016. India's industrial production (IIP) contracted by 0.8% in April 2016. On the same day, the inflation based on the consumer price index (CPI) for June 2016 is scheduled to be released by the government. CPI inflation increased to 21-months high of 5.76% in May 2016, recording rise for second straight month.
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