Key benchmark indices edged higher in early trade. At 9:16 IST, the barometer index, the S&P BSE Sensex, rose 90.61 points or 0.27% at 33,143.65. The Nifty 50 index advanced 36.35 points or 0.36% at 10,229.30.
The stock market opened higher as bargain hunting emerged after previous two sessions of losses. The market also took note of the US Federal Reserve's decision of raising interest rates for the third time this year, underlining the confidence that the United States remains on solid footing.
The S&P BSE Mid-Cap index rose 0.56%. The S&P BSE Small-Cap index advanced 0.38%. Both the indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 816 shares rose and 262 shares declined. A total of 33 shares were unchanged.
Rural Electrification Corporation (REC) fell 0.03%. The company said it has launched an issue of $400 million, 3.068% notes due 2020, priced on 11 December 2017. The notes will mature on 2020 and all principal and interest payments will be made in US dollars. The settlement date for the notes is expected to be 18 December 2017. The announcement was made after market hours yesterday, 13 December 2017.
The net proceeds from the sale of the notes will be applied for refinancing the outstanding external commercial borrowings of the company within the ambit of the ECB Guidelines and such other guidelines specified by the Reserve Bank of India (RBI).
Tata Steel advanced 0.51% after the company said that a meeting of its board of directors will be held on 18 December 2017 and will conclude on 19 December 2017, to consider a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof, subject to such regulatory/statutory approvals as may be required, including approval of shareholders of the company, if applicable. The announcement was made after market hours yesterday, 13 December 2017.
Mahindra & Mahindra (M&M) was up 1.01% after wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) (MOICML) on 13 December 2017, sold 64.50 lakh shares, representing 5% of the share capital of CIE Automotive S.A. The Spanish company is listed on the Madrid and Bilbao Stock Exchanges. The average gross price was Euro 23.50 per share. The deal totalled Euro 151.58 million.
The sale has been executed on the stock exchange. Following the sale, MOICML's shareholding in CIE Automotive S.A. would come down to 7.435% of its share capital. This transaction will facilitate diversification of Investor base of CIE Automotive S.A.
MOICML would utilize the sale proceeds, inter alia, for part re-payment of MOICML's debt and/or for declaration of dividend or for any other purpose, as may be decided by the board of MOICML. The announcement was made after market hours yesterday, 13 December 2017.
On the macro front, the government will announce inflation data based on wholesale price index (WPI) for November at 12:00 IST today, 14 December 2017. Wholesale prices rose 3.59% year-on-year in October, following a 2.6% increase in September.
Among other news, the second phase of polling in Gujarat is underway today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.
Overseas, Asian stocks were mixed. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.
The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.
In Europe, a meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of 30 billion from January with the option of extending it in September 2018.
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