Key benchmark indices edged higher in early trade tracking firmness in Asian stocks. At 9:20 IST, the barometer index, the S&P BSE Sensex was up 89.22 points or 0.36% at 24,755.99. The 50-unit Nifty 50 index was up 74.55 points or 0.99% at 7,573.30. IT and metal stocks led gains on the bourses.
The market breadth indicating the overall health of the market was very strong. On BSE, 747 shares rose and 346 shares fell. A total of 49 shares were unchanged. The BSE Mid-Cap index was currently up 0.23%. The BSE Small-Cap index was currently up 0.3%. Both these indices underperformed the Sensex.
In overseas markets, Asian stocks gained led by Chinese stocks after the Federal Reserve's cautious stance on further rate increases prompted investors to rebuild their bets on riskier assets. In mainland China, the Shanghai Composite was currently up 1.88%. In Hong Kong, the Hang Seng index was currently up 0.64%. Fed slashed its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US. US stocks rose yesterday, 17 March 2016 as energy, materials and industrials sectors rose sharply, helped by soaring commodity prices.
Bharat Heavy Electricals (Bhel) (up 1.53%), TCS (up 1.44%) and Bharti Airtel (up 1.2%) were the major gainers from the Sensex pack.
Hindustan Unilever (HUL) dropped 0.67%. LT Foods jumped 11.19%. The company announced that it has signed an agreement for the sale of its rice exports business carried out primarily under the brands Gold Seal Indus Valley and Rozana to LT Foods Middle East DMCC, a group company of LT Foods. HUL's decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business. The deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing. The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months, HUL said. HUL will continue to manage the business until the completion of the transaction, it added. The announcement was made after trading hours yesterday, 17 March 2016.
Oil India gained 1.03% after the company said that Moody's Investor Service has confirmed credit rating of 'Baa2' to the company's senior unsecured regular bond/debenture. The outlook is stable. The announcement was made after trading hours yesterday, 17 March 2016.
Crompton Greaves (CG) rose 2.14% after the company said that it won an order of $35 million (Rs 236 crore approximately) from PT PLN (Persero), the state-owned electricity company of Indonesia, to manufacture and install 28 power transformers ranging from 83.3 mega-volt ampere (MVA) to 167 MVA and rated voltage 500 kilovolt (kV)/150 kV. CG's power transformers will be installed across PT PLN's transmission network, spread over multiple substations and power plants in the Java, Sumatra and Kalimantan provinces of Indonesia. The delivery period is scheduled between May 2016 and March 2017. The power transformers will be manufactured in CG's manufacturing facility in Indonesia. The announcement was made after trading hours yesterday, 17 March 2016.
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