Telecom and oil sector stocks led gains as key benchmark indices edged higher for the third straight trading session. The barometer index, the S&P BSE Sensex, gained 169.35 points or 0.67% at 25,489.79, as per the provisional closing data. The Nifty 50 index rose 50 points or 0.65% at 7,750.90, as per the provisional closing data. The two key benchmark indices traded in positive zone throughout the trading session. The Sensex hit its highest level in more than a week when it jumped 252.46 points or 0.99% at the day's high of 25,572.90 in early afternoon trade. The barometer index gained 52.03 points or 0.2% at the day's low of 25,372.47 in early trade. The Nifty also hit its highest level in more than a week when it rose 75.70 points or 0.98% at the day's high of 7,776.60 in early afternoon trade. The index rose 14.85 points or 0.19% at the day's low of 7,715.75 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,419 shares rose and 1,273 shares fell. A total of 226 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.32%. The BSE Small-Cap index provisionally rose 0.20%. Both these indices underperformed the Sensex.
Gain in Asian stocks underpinned sentiment on the domestic bourses. Asian stocks edged higher after overnight gains for US stocks. Energy sector stocks led gains for US equities yesterday, 15 December 2015, as crude oil prices rose. Meanwhile, the US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting today, 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. The US central bank has hinted that it intends to hike rates gradually.
The total turnover on BSE amounted to Rs 2713 crore, higher than turnover of Rs 2577.64 crore registered during the previous trading session.
Index heavyweight and India's largest cigarette maker by sales ITC fell 0.96% to Rs 319.50. The stock hit a high of Rs 324.60 and low of Rs 318.25 in intraday trade.
Index heavyweight and housing finance major HDFC rose 1.02% to Rs 1,219. The stock hit a high of Rs 1,222.65 and low of Rs 1,209.55 in intraday trade.
Index heavyweight and IT major Infosys rose 1.22% to Rs 1,090. The stock hit a high of Rs 1,097.80 and low of Rs 1,080 in intraday trade.
Telecom stocks edged higher. Bharti Airtel (up 3.89%), Idea Cellular (up 2.81%), Reliance Communications (up 1.80%) and Tata Teleservices (Maharashtra) (up 0.25%), edged higher. MTNL (down 2.64%), edged lower.
Stocks of diesel vehicle makers were mixed. Ashok Leyland (up 0.69%) and Tata Motors (up 0.32%) edged higher. Mahindra & Mahindra (M&M) fell 4.97%. The Supreme court today, 16 December 2015, reportedly imposed a ban on registration of diesel passenger vehicles of engine capacity of 2000cc or above in Delhi till 31 March 2016. The court reportedly clarified that no non-Delhi destined trucks can enter the city from National highways 1 and 8 and specified that no truck registered prior to 2005 can ply on the roads of Delhi.
The court was hearing petitions seeking to address Delhi's alarming pollution levels.
Shares of oil exploration and production firms edged higher. Cairn India (up 3.47%), ONGC (up 3.99%), Oil India (up 3.15%) and Reliance Industries (up 0.22%) edged higher.
Shares of public sector oil marketing companies (PSU OMCs) also moved higher. HPCL (up 2.27%), BPCL (up 1.62%) and Indian Oil Corporation (up 1.83%) edged higher. PSU OMCs have reduced the price of petrol by 50 paise a litre and diesel price by 46 paise a litre in Delhi with corresponding price revision in other states with effect from the midnight of 15 December 2015. Meanwhile, the government today, 16 December 2015, reportedly raised excise duty on diesel by Rs 1.17 per litre and on petrol by 30 paise per litre. The hike seeks to take advantage of a slump in global crude oil prices to shore up government revenues without stoking inflation.
In the global commodities markets, Brent for January settlement was currently down 81 cents at $37.64 a barrel. The contract had risen 53 cents or 1.4% to settle at $38.45 a barrel during the previous trading session. Brent for February settlement was currently down 86 cents at $37.87 a barrel. The Brent January contract expires today, 16 December 2015.
Meanwhile, Finance Minister Arun Jaitley reportedly said today, 16 December 2015, that the proposed Goods and Services Tax (GST) rate would be much less than 18%. Jaitley's comments on the GST rate come after a committee headed by Chief Economic Adviser Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report submitted to the government early this month suggested standard GST rate at 17% to 18%. Typically, the majority of the goods and services will be taxed at the standard rate under the GST regime. The Finance Minister was also quoted as saying that the demand to scrap the 1 percent levy under the GST Bill is fair. The GST constitutional amendment bill has been stuck in the Rajya Sabha where the BJP-led NDA lacks a majority. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The bill has been passed by the Lok Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country.
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