Banking and telecom sector stocks and index heavyweight Reliance Industries (RIL) led recovery as Indian stocks snapped a three day losing streak. The barometer index, the S&P BSE Sensex, gained 304.45 points or 1.26% at 24,492.82, as per the provisional closing data. The gains for Sensex in percentage terms were higher than the gains for the 50-unit Nifty 50 index. The Nifty gained 84.10 points or 1.14% at 7,435.10, as per the provisional closing data. Gains in global stocks aided the upmove on the domestic bourses.
The Sensex jumped 374.97 points or 1.55% at the day's high of 24,563.34 in mid-afternoon trade, its highest level since 15 January 2016. The barometer index rose 58.86 points or 0.24% at the day's low of 24,247.23 in early trade. The Nifty rose 111.75 points or 1.52% at the day's high of 7,462.75 in mid-afternoon trade. The index rose 13.15 points or 0.17% at the day's low of 7,364.15 in early trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,733 shares gained and 944 shares fell. A total of 147 shares were unchanged. The BSE Mid-Cap index was provisionally up 1.75%. The BSE Small-Cap index was provisionally up 1.74%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3049 crore, lower than turnover of Rs 3191.81 crore registered during the previous trading session.
In overseas stock markets, European stocks edged higher as slowing growth in China raised hopes for further stimulus for the world's second-largest economy. US stock index futures pointed at firm opening for US stocks later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 207 points at the opening bell today, 19 January 2016.
Chinese stocks led gains in Asian stocks after latest data pointing to slower Chinese economic growth fanned stimulus hopes. In mainland China, the Shanghai Composite index ended with gains of 3.22%. In Hong Kong, the Hang Seng index rose 2.07%. China's economy grew 6.8% in the fourth quarter from a year earlier, easing from 6.9% in the third quarter. It was the weakest pace of expansion since the first quarter of 2009, when growth tumbled to 6.2%. China's economic growth rate slowed to a 25-year low of 6.9% in 2015. China's GDP expansion stood at 7.3% in 2014.
Index heavyweight and housing finance major HDFC advanced 1.68% to Rs 1,152.85. The stock hit high of Rs 1,157.75 and low of Rs 1,130 in intraday trade. The government has recommended the proposal of HDFC Standard Life Insurance Co. to raise foreign shareholding in the company to the Cabinet Committee on Economic Affairs. Standard Life plc proposes to raise its stake in the life insurance firm to 35% from 26% by way of purchase of existing shares held by HDFC in the joint venture. The transaction involves foreign direct investment (FDI) of Rs 1705 crore. HDFC Standard Life Insurance Co. is the life insurance joint venture between HDFC and Standard Life plc.
Index heavyweight Reliance Industries advanced 2.85% to Rs 1,047 ahead of its Q3 December 2015 results today, 19 January 2016. The stock hit a high of Rs 1,049 and a low of Rs 1,015.20 in intraday trade. As per reports, Reliance Jio Infocomm, the telecom business of RIL, will raise Rs 15000 crore through a rights issue. Reliance Jio Infocomm will be issuing 1500 crore equity shares of Rs 10 each to existing shareholders, reports indicated.
Axis Bank surged 5.98% to Rs 395.90 ahead of its Q3 December 2015 results tomorrow, 20 January 2016. The stock hit high of Rs 395.90 and low of Rs 376.85 in intraday trade.
Capital goods stocks edged higher. L&T (up 3.8%), Bharat Heavy Electricals (Bhel) (up 1.44%), ABB India (up 1.9%), BEML (up 0.07%), Bharat Electronics (up 1.42%), Punj Lloyd (up 2.81%), Crompton Greaves (up 1.03%), Siemens (up 1.91%) and Thermax (up 1.18%) rose.
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