A bout of volatility was witnessed as key benchmark indices entered positive terrain in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 8.29 points or 0.03% at 26,072.41. The Nifty 50 index was up 5.95 points or 0.07% at 7,985.85. The Sensex was trading above the psychologically important 26,000 mark. The Sensex pared gains after hitting its highest level in almost four months.
The Sensex rose 36.42 points, or 0.14% at the day's high of 26,100.54 in early trade, its highest intraday level since 4 January 2016. The index fell 54.75 points, or 0.21% at the day's low of 26,009.37 at the oset of trading session. The Nifty index rose 12.10 points, or 0.15% at the day's high of 7,992 in morning trade. The index fell 20.80 points, or 0.26% at the day's low of 7,959.10 at the oset of trading session.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month April 2016 series to May 2016 series. The near month April 2016 derivatives contract expire today, 28 April 2016.
The market breadth indicating the overall health of the market was positive. On BSE, 1,097 shares rose and 710 shares fell. A total of 109 shares were unchanged. The BSE Mid-Cap index was currently up 0.42%. The BSE Small-Cap index was currently up 0.32%. Both these indices outperformed the Sensex.
In overseas markets, most Asian stocks edged lower. Investors across the Asia-Pacific region were waiting for results from the Bank of Japan's two-day policy meeting, which began yesterday, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
US stocks closed mostly higher yesterday, 27 April 2016, but the gains were checked by weakness in the technology sector. Meanwhile, the Federal Reserve's two-day policy meeting concluded yesterday, 27 April 2016. The Fed's policy committee said it would leave interest rates unchanged, taking a wait-and-see stance on future rate increases. The Fed's signal that it was in no rush to raise rates relieved investors.
IT stocks edged higher. Oracle Financial Services Software (up 1.55%), TCS (up 0.50%), MindTree (up 0.44%), Wipro (up 0.41%), Tech Mahindra (up 0.28%), MphasiS (up 0.22%) and Hexaware Technologies (up 0.16%), edged higher. Persistent Systems (down 0.29%) and Infosys (down 0.63%), edged lower.
HCL Technologies lost 2.55% to Rs 816.35 after consolidated net profit rose 0.3% to Rs 1926 crore on 3.4% growth in revenue to Rs 10698 crore in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. The result was announced before market hours today, 28 April 2016. The company's revenue in constant currency terms rose 1.7% on sequential basis in the quarter ended 31 March 2016. In dollar terms, HCL Tech's net profit declined 2% to $285 million on 1.3% growth in revenue to $1,587 million in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. HCL Tech has changed its accounting year to the period from 1 April to 31 March from earlier 1 July to 30 June.
Most metal shares edged lower. NMDC (down 1.52%), National Aluminium Company (down 1.48%), Vedanta (down 1.14%), Hindustan Copper (down 0.63%), Jindal Steel & Power (down 0.59%), Hindalco Industries (down 0.54%), Steel Authority of India (down 0.22%) and JSW Steel (down 0.03%), edged lower. Tata Steel (up 0.11%), Hindustan Zinc (up 0.38%) and Bhushan Steel (up 0.84%), edged higher.
Meanwhile, the High Grade Copper for May 2016 delivery was currently up 0.22% at $2.2295 per pound on the COMEX. Copper, used largely in power and construction, is considered a gauge of economic activity.
Kansai Nerolac Paints rose 0.84% after net profit jumped 920% to Rs 615.77 crore on 10.3% growth in net sales to Rs 888.20 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 27 April 2016. On 30 March 2016, the company had sold its Perungudi fixed assets for a consideration of Rs 537.86 crore. The profit of Rs 535.34 crore is disclosed as an exceptional item in Q4 March 2016.
Canara Bank rose 0.83% after the bank said that it has successfully raised Rs 3000 crore under BASEL-III compliant tier-II bonds with a coupon of 8.4% per annum. The announcement was made before market hours today, 28 April 2016. Canara Bank said that as per the powers delegated by the board of directors of the bank, the Bond Committee had decided to raise Basel III compliant Tier -II bonds amounting to Rs 1000 crore with an option to retain oversubscription, at the sole discretion of the bank for an amount up to Rs 2000 crore on private placement basis. The issue was opened on 18 April 2016 and closed on 27 April 2016.
Powered by Capital Market - Live News
