Gains in European stocks helped key equity benchmark indices in India extend gains in mid-afternoon trade. At 14:16 IST, barometer index, the S&P BSE Sensex, was up 125.13 points or 0.5% at 25,275.48. The gains for the Sensex were higher in percentage terms compared with those for 50-unit Nifty 50 index. The Nifty was currently up 33.55 points or 0.44% at 7,683.60. The Sensex rose 128.33 points or 0.51% at the day's high of 25,278.68 in mid-afternoon trade, its highest level since 11 December 2015. The barometer index fell 74.81 points or 0.29% at the day's low of 25,075.54 in morning trade. The Nifty rose 34.25 points or 0.45% at the day's high of 7,684.30 in mid-afternoon trade, its highest level since 11 December 2015. The Nifty fell 24.95 points or 0.32% at the day's low of 7,625.10 in morning trade.
In overseas stock markets, European shares surged led by gains in stocks of financial firms, auto makers and commodity producers. Asian stocks witnessed a mixed trend amid caution ahead of a highly anticipated US Federal Reserve meeting this week. The Fed is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 16 December 2015. With markets having already priced in a 25 basis points rate hike this week, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. US stocks ended a volatile session with modest gains yesterday, 14 December 2015, lifted by a rebound in crude-oil prices.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,393 shares rose and 1,050 shares fell. A total of 173 shares were unchanged. The BSE Mid-Cap index was currently up 0.28%. The BSE Small-Cap index was currently up 0.49%. Both these indices underperformed the Sensex.
On the macro front, data released by the government after trading hours yesterday, 14 December 2015, showed that inflation based on the consumer price index (CPI) spiked to 5.41% in November 2015 from 5% in October 2015. The acceleration in consumer price inflation was driven by an increase in food prices.
FMCG shares were mixed. Hindustan Unilever (up 1.84%), Dabur India (up 1.46%), GlaxoSmithKline Consumer Healthcare (up 1.23%), Godrej Consumer Products (up 1.22%), Colgate Palmolive (India) (up 0.89%), Marico (up 0.66%), Britannia Industries (up 0.35%) and Procter & Gamble Hygiene & Health Care (up 0.04%) edged higher. Nestle India (down 0.25%), Tata Global Beverages (down 0.3%), Bajaj Corp (down 0.48%) and Jyothy Laboratories (down 0.59%) edged lower.
Auto stocks were in demand. Eicher Motors (up 2.37%), Escorts (up 1.57%), Maruti Suzuki (India) (up 0.73%), TVS Motor Company (up 2.07%), Bajaj Auto (up 0.21%), Hero MotoCorp (up 0.03%) and Ashok Leyland (up 0.46%) edged higher.
Tata Motors edged higher in volatile trade. The stock currently up 1.43% at Rs 377. The stock hit a high of Rs 377.90 and a low of Rs 365.10 so far during the day.
Mahindra & Mahindra (M&M) was up 0.96%. Tech Mahindra was down 3.34%. Tech Mahindra and Mahindra & Mahindra (M&M) have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A., an iconic Italian brand in automotive and industrial design. The announcement was made after market hours yesterday, 14 December 2015. Pininfarina is an automotive design and engineering services company providing services to global automotive OEMs. Pininfarina clocked revenue of about euro 86.60 million in year ended 31 December 2014. The acquisition will broaden Tech Mahindra's engineering service offering to its customers.
As part of the agreement, Tech Mahindra and M&M shall purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincar S.r.l. at a price of euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a special purpose vehicle (SPV) whose ownership shall be held 60% by Tech Mahindra and 40% by M&M. This will be followed by an open offer for all the remaining ordinary shares of Pininfarina at the same purchase price paid for the shares held by Pincar. The SPV will infuse funds to the tune of euro 20 million into Pininfarina by way of a rights issue before the end of 2016. Tech Mahindra and M&M have also signed definitive agreement with the lenders, creditors and lessors of Pininfarina to restructure the existing debt of Pininfarina. Tech Mahindra and M&M have also decided to provide on a joint and several basis corporate guarantee not exceeding euro 114.50 million to the lenders, creditors and lessors of Pininfarina.
Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina continuing as the Chairman of its board.
Alstom T&D India gained 1.36% after the company said regular operations of manufacturing facilities at Pallavaram and Padappai in Chennai started from 7 December 2015 onwards after recent floods in Chennai. The company made the announcement during market hours today, 15 December 2015. Alstom T&D India said that there has not been any material loss/damage to the property and assets of the company due to recent floods in Chennai, although it said that some deliveries would get delayed. The company's priority is to ensure safety and protection of all the company's employees and the assets. Due to recent heavy rains/floods in Chennai, the manufacturing facilities of the company at Pallavaram and Padappai were closed for four days.
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