A bout of volatility was witnessed in morning trade as key benchmark indices trimmed initial gains. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 53.52 points or 0.2% at 26,199.19. The gains in the 50-unit CNX Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty was up 24.75 points or 0.31% at 7,960. Volatility was witnessed ahead of the Reserve Bank of India's monetary policy statement at 11:00 IST today, 1 December 2015. Meanwhile, the data after market hours showed pick up in economic activity in the second quarter.
Earlier, the Sensex and the Nifty, both, hit their highest level in three and half weeks. The Sensex rose 100.35 points or 0.38% at the day's high of 26,246.02 in early trade, its highest level since 6 November 2015. The Sensex rose 25.61 points or 0.09% at the day's low of 26,171.28 in morning trade. The Nifty rose 36.80 points or 0.46% at the day's high of 7,972.05 in early trade, its highest level since 6 November 2015. The Nifty rose 15.30 points or 0.19% at the day's high of 7,950.55 in morning trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,341 shares rose and 604 shares fell. A total of 93 shares were unchanged. The BSE Mid-Cap index was up 0.57%. The BSE Small-Cap index was up 0.52%. Both these indices outperformed the Sensex.
On macro front, India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours yesterday, 30 November 2015. Meanwhile, the Finance Ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
The index of eight core industries comprising nearly 38% of the weight of items included in the index of industrial production (IIP) rose 3.2% in October 2015 over October 2014. The data was announced after market hours yesterday, 30 November 2015.
In overseas markets, Asian shares rose, shrugging off one Chinese factory survey that did little to ease persistent concerns about cooling growth in the economy, while a private survey showed a hint of stabilisation. US stocks fell yesterday, 30 November 2015, weighed down by declines in retail shares.
Metal & mining stocks rose after gains in global commodity prices. JSW Steel (up 2.12%), Bhushan Steel (up 0.95%), Hindustan Copper (up 0.35%), Vedanta (up 2.67%), Hindalco Industries (up 1.95%), Hindustan Zinc (up 1.18%), Jindal Steel & Power (up 2.2%), Tata Steel (up 2.89%), Steel Authority of India (Sail) (up 2.19%), and NMDC (up 1.48%) gained. National Aluminum Company fell 0.25%.
IT stocks advanced. Tech Mahindra (up 0.82%), HCL Technologies (up 1.24%), TCS (up 0.2%), and Wipro (up 2.06%) edged higher. Infosys declined 0.37%.
Goa Carbon rose 0.71% after the company said that the operations at its Paradeep plant at Udayabata village in Orissa has commenced from 30 November 2015 onwards. The announcement was made after market hours yesterday, 30 November 2015.
Saint-Gobain Sekurit India fell 0.35% after the company said it shut the Bhosari plant in Pune with effect from the close of business hours on 30 November 2015, as it was economically unviable to continue the operations of this plant. The announcement was made after market hours yesterday, 30 November 2015.
Meanwhile, the Reserve Bank of India (RBI) will announce its fifth bi-monthly monetary policy decision at 11:00 IST today, 1 December 2015. The RBI is likely to keep its policy rate unchanged. In the fourth bi-monthly monetary policy on 29 September 2015, the central bank reduced the policy repo rate by 50 basis points from 7.25% to 6.75%. The RBI has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL).
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