Key benchmark indices extended intraday gains and hit fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 97.22 points or 0.37% at 26,076.82. The Nifty 50 index was currently up 16.50 points or 0.21% at 7,995.60. The Sensex was currently trading well above the psychologically important 26,000 level. The Nifty was currently trading a tad below the crucial 8,000 mark after regaining that mark in mid-afternoon trade. Bargain hunting has kicked in after indices witnessed prior seven days of losses.
After a subdued start to the trade tracking weak Asian cues, indices reversed losses in early afternoon trade and consolidated further in the green.
The Sensex rose 163.59 points or 0.62% at the day's high of 26,143.19 in mid-afternoon trade. It lost 107.22 points or 0.41% at the day's low of 25,872.38 in morning trade. The Nifty rose 43.50 points or 0.54% at the day's high of 8,022.60 in mid-afternoon trade. It fell 37.05 points or 0.46% at the day's low of 7,942.05 in morning trade.
The BSE Mid-Cap index was currently down 0.16%. The BSE Small-Cap index was currently up 0.13%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,365 shares rose and 1,045 shares fell. A total of 156 shares were unchanged.
Tata Steel rose 0.74% after the company said that it has executed definitive agreements to acquire 100% equity of Odisha based manufacturer of iron ore pellets, Brahmani River Pellets (BRPL) from Aryan Mining and Trading Corporation (AMTC) and companies in the Moorgate Industries Group (MIG) for enterprise value of Rs 900 crore plus closing adjustments. The announcement was made during market hours today, 23 December 2016.
BRPL recorded revenue of Rs 452 crore in FY 2016. The indicative time period for completion of the acquisition is about four months.
Shares of most power generation and power distribution companies saw buying interest after indices reversed losses. Torrent Power (up 0.46%), NHPC (up 0.01%), NTPC (up 0.62%), Adani Power (up 0.34 %), Reliance Infrastructure (up 0.07%) and Reliance Power (up 0.12%) gained. Tata Power Company (down 0.74%) and Power Grid Corporation of India (down 0.33%) declined.
Shares of state run coal mining major Coal India rose 0.02% to Rs 288.10. The stock hit high of Rs 288.65 and low of Rs 286.10 in intraday trade.
Auto stocks witnessed a mixed trend. Ashok Leyland (up 0.71%), Maruti Suzuki India (up 1.43%), Bajaj Auto (up 2.08%), Hero MotoCorp (up 1.18%), and TVS Motor Company (up 0.99%) gained. Mahindra & Mahindra (M&M) (down 0.79%), Eicher Motors (down 1.48%), and Tata Motors (down 0.88%) declined.
Reliance Defence and Engineering rose 3.57% to Rs 55.05 on BSE after a huge bulk deal of 1.23 crore shares was executed on the scrip at Rs 55.10 per share at 09:35 IST on BSE.
Asian Oilfield Services surged 10.14% after the company said it has scheduled a board meeting on 27 December 2016, to consider allotment of warrants. The announcement was made after market hours yesterday, 22 December 2016. The allocation of warrants is subject to the company's shareholders' approval in its extraordinary general meeting (EGM) to be held on 23 December 2016.
Overseas, European stocks were mixed in early trade. The Italian government approved a decree today, 23 December 2016, to bail out Monte dei Paschi di Siena after the world's oldest bank failed to win investor backing for a desperately needed capital increase. Prime Minister Paolo Gentiloni said his Cabinet had authorised a 20 billion-euro ($20.9 billion) fund to help lenders in distress - first and foremost Monte dei Paschi.
Asian stocks witnessed a mixed trend. Overnight, US equities posted their first back-to-back daily declines of the month in light trading ahead of the Christmas weekend. Wall Street stocks had witnessed an unabated rally since the US election on expectations that Donald Trump's promised fiscal stimulus will boost economic growth and company profits.
Among economic data in US, Gross domestic product increased at a 3.5% annual rate instead of the previously reported 3.2% pace, the Commerce Department said in its third GDP estimate. In another data point, consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2% in November, below the estimates.
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