Key benchmark indices were trading higher in early trade. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 134.95 points or 0.53% at 25,436.85. The Nifty 50 index was up 36.20 points or 0.47% at 7,785.90.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 611 shares rose and 212 shares fell. A total of 40 shares were unchanged. The BSE Mid-Cap index was currently up 0.40%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.55%, outperforming the Sensex.
In the overseas markets, Asia markets were mixed today, 23 May 2016, with the Japanese benchmark index falling, as markets adjust to a slew of recent comments from the US Federal Reserve about a possible interest rate hike in June. Japan's Nikkei 225 was down 0.98%. A two-day meeting of G7 finance ministers and central bank governors was scheduled on 20 and 21 May 2016 in Japan. The United States issued a fresh warning to Japan against intervening in currency markets on Saturday, 21 May 2016, as the two countries' differences over foreign exchange overshadowed a Group of 7 finance leaders' gathering in the Asian nation. Japan and the United States are at logger-heads over currency policy with Washington saying Tokyo has no justification to intervene in the market to stem yen gains, given the currency's moves remain orderly. The G7 meeting is the meeting of the finance ministers from the group of seven nations viz. United States, Japan, Germany, France, United Kingdom, Italy and Canada.
US stocks finished the trading week in positive zone as the equity markets reclaimed some of the recent losses that commenced on the heels of the release of the minutes from the Fed's April monetary policy meeting. In US, Philadelphia Fed President Patrick Harker will speak to the Philadelphia Council for Business Economics followed by the press meet in Philadelphia on Monday, 23 May 2016. St. Louis Federal Reserve Bank President James Bullard will address a speech on the economy and monetary policy in Beijing followed by the press meet on Monday, 23 May 2016.
Reliance Communications (RCom) was up 1%. The company announced on Saturday, 21 May 2016, that based on the substantial further progress made, RCom, Maxis Communications Berhad (MCB) and Sindya Securities and Investments (Sindya) have mutually extended the exclusivity period between RCom and MCB and Sindya, the shareholders of Aircel (Aircel), by 30 days to 22 June 2016, to consider the potential combination of the Indian wireless business of RCom and Aircel and mutually derive the expected substantial benefits of in-country consolidation, including opex and capex synergies and revenue enhancement. The discussions, though at advanced stage, are non-binding in nature. Any transaction is subject to completion of due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there is no certainty that any transaction will result.
Britannia Industries was down 6.36%. The company's consolidated net profit rose 13.73% to Rs 190.23 crore on 6.87% rise in total income to Rs 2235.68 crore in Q4 March 2016 over Q4 March 2015. The announcement was made after market hours on Friday, 20 May 2016. The revenue growth was impacted due to phasing out of excise duty incentives available to the company.
Multi Commodity Exchange of India (MCX) was up 5.37%. The Reserve Bank of India (RBI) removed the restrictions placed on purchase of the company's shares by foreign institutional investors (FIIs) with immediate effect. The RBI after trading hours on Friday, 20 May 2016, said that the aggregate shareholding of FIIs in MCX has gone below the prescribed threshold caution limit stipulated as per the current FDI policy.
Metal shares were in demand. National Aluminium Company (up 6.30%), Vedanta (up 1.91%), Hindalco Industries (up 1.26%), Hindustan Zinc (up 0.99%), Steel Authority of India (up 0.88%), Jindal Steel & Power (up 0.83%), JSW Steel (up 0.66%), Bhushan Steel (up 0.42%), Tata Steel (up 0.42%) and NMDC (up 0.38%), edged higher.
Meanwhile, the High Grade Copper for July 2016 delivery was currently up 0.22% at $2.06 per pound on the COMEX. Copper, used largely in power and construction, is considered a gauge of economic activity.
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