Gains in global stocks triggered by a recovery in battered global commodity prices aided gains for Indian stocks. The barometer index, the S&P BSE Sensex, gained 259.65 points or 1.01% to settle at 25,850.30. The 50-unit Nifty 50 index rose 79.85 points or 1.03% to settle at 7,865.95. Stocks of public sector companies and metal and oil exploration and production (E&P) sector stocks along with index heavyweight Infosys led the upmove for the two key benchmark indices. The Sensex and the Nifty remained in positive zone throughout the trading session after opening with an upward gap. The Sensex attained its highest closing level in almost three weeks. The Nifty attained a 3-week closing high.
Metal and mining stocks were in demand as copper prices rose in global commodity markets. Tata Steel edged higher after the company announced that Tata Steel UK (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), has signed a Letter of Intent with Greybull Capital to start exclusive negotiations for the potential sale of its Long Products Europe business. Shares of oil E&P firms rose as global crude oil prices rose.
Engineering and construction major L&T edged higher after the company's construction division won orders worth Rs 1178 crore across various businesses in December 2015.
Dr. Lal PathLabs, a provider of diagnostics and related healthcare tests and services, made a solid debut. Another new listing Alkem Laboratories also made a strong debut.
In overseas stock markets, mining stocks led gains for European equities as copper prices rose in global commodities markets. Asian stocks edged higher as global commodity prices stabilized. US stocks shrugged off soft economic data yesterday, 22 December 2015, scoring gains across the board to finish higher for a second straight session.
The Sensex gained 259.65 points or 1.01% to settle at 25,850.30, its highest closing level since 3 December 2015. The index jumped 284.62 points or 1.11% at the day's high of 25,875.27. The barometer index rose 99.05 points or 0.38% at the day's low of 25,689.70.
The Nifty rose 79.85 points or 1.03% to settle at 7,865.95, its highest closing level since 2 December 2015. The index jumped 85.35 points or 1.09% at the day's high of 7,871.45. The index rose 40 points or 0.51% at the day's low of 7,826.10.
The market breadth indicating the overall health of the market was positive. On BSE, 1,526 shares rose and 1,145 shares fell. A total of 247 shares were unchanged.
The BSE Mid-Cap index rose 0.3%. The BSE Small-Cap index gained 0.43%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2306 crore, lower than turnover of Rs 2685.05 crore registered during the previous trading session.
Metal and mining stocks were in demand as copper prices rose in global commodity markets. Vedanta (up 4.01%), JSW Steel (up 1.38%), Steel Authority of India (Sail) (up 1.89%), Hindustan Zinc (up 1.73%), Jindal Steel & Power (up 1.6%), Hindalco Industries (up 5.91%), NMDC (up 1.57%), edged higher. National Aluminium Company (down 3.03%) and Hindustan Copper (down 0.26%) fell.
High Grade Copper for March 2016 delivery was currently up 0.59% at $2.1215 per pound on the COMEX.
Tata Steel gained 2.68% after the company announced that Tata Steel UK (TSUK), an indirect subsidiary company of Tata Steel Europe (TSE), has signed a Letter of Intent with Greybull Capital to start exclusive negotiations for the potential sale of its Long Products Europe business. The memorandum covers several UK-based assets including TSUK's Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York and associated distribution facilities. It also includes Scottish mills in Dalzell and Clydebridge which are currently being mothballed. The announcement was made after market hours yesterday, 22 December 2015.
Engineering and construction major L&T rose 0.87% after the company's construction division won orders worth Rs 1178 crore across various businesses in December 2015. Meanwhile, L&T announced after market hours yesterday, 22 December 2015, that its Smart World & Communications business vertical is leading the way to make Jaipur India's first Smart City by creating a host of smart solutions like Wi-Fi hotspots, citizen interactive information kiosks, surveillance cameras, environmental sensors, parking information systems and remote kiosks with facility management services at select locations in the city. L&T has received the mandate from Jaipur Development Authority (JDA), which is leading the initiative to equip Jaipur with world-class digital facilities targeted primarily at the heavy tourist traffic that the city attracts. The Jaipur Smart City project has been planned in two phases with Phase 1 aimed at transforming six major locations into smart zones in the next month and a half and the remaining locations to be completed in a total of 120 days along with an Operations & Maintenance contract for 5 years. In Phase 1, L&T is completing the work at six locations, including the famous Ajmer Fort.
Kalpataru Power Transmission rose 3.39% after the company announced that it has secured new orders of approximately Rs 1395 crore. The company made the announcement during market hours today, 23 December 2015. Commenting on new orders, Kamal Jain, Director of Finance & CFO Kalpataru Power Transmission said that the domestic order inflows of over Rs 2100 crore till date in the year ending 31 March 2016 (FY 2016) is very strong. It is almost double compared to the same period of previous year. He added that the company expects this momentum to continue for atleast 1 to 2 years considering government's push for the sector in which it operates.
Stocks of public sector companies were in demand. Bharat Heavy Electricals (Bhel) (up 3.58%), GAIL (India) (up 5.82%), Power Grid Corporation of India (up 1.23%), Engineers India (up 0.25%), Coal India (up 0.83%), MMTC (up 0.23%) and NTPC (up 1.53%) edged higher.
Shares of oil exploration and production (E&P) firms rose as global crude oil prices rose. Reliance Industries (RIL) (up 1.63%), Cairn India (up 1.46%) and Oil India (up 0.86%) edged higher.
ONGC rose 2.04% after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 22 December 2015, gave its approval for investment of Rs 5000 crore by ONGC into the equity share capital of ONGC Videsh (OVL) by conversion of existing loan of equivalent amount into equity. This will strengthen the capital base of OVL which in turn will enhance the ability of ONGC and OVL to undertake overseas exploration and production (E&P) business.
Stocks of public sector oil marketing companies (PSU OMCs) also edged higher. HPCL (up 1.45%) and Indian Oil Corporation (up 0.68%) gained. BPCL shed 0.22%.
In the global commodities market, Brent crude oil prices edged higher. Brent for February settlement was currently up 36 cents at $36.47 a barrel. The contract had lost 24 cents or 0.66% to settle at $36.11 a barrel during the previous trading session.
Bank stocks gained. Among public sector banks, Punjab National Bank (up 0.5%), Bank of Baroda (up 0.8%), State Bank of India (SBI) (up 0.7%), Union Bank of India (up 0.96%), Canara Bank (up 0.61%), and Bank of India (up 0.86%) edged higher.
Among private sector banks, Axis Bank (up 1.18%), HDFC Bank (up 0.81%), ICICI Bank (up 0.89%), Kotak Mahindra Bank (up 0.34%), Federal Bank (up 0.36%), Yes Bank (up 1.6%) and IndusInd Bank (up 0.58%) edged higher.
IT stocks gained. HCL Technologies (up 1.65%) and TCS (up 0.6%) gained. Tech Mahindra declined 0.22%.
Wipro edged higher in volatile trade after it signed a definitive agreement to acquire Viteos Group, a BPaaS (Business Process as-a-Service) provider for the Alternative Investment Management Industry, for a purchase consideration of $130 million. The stock rose 0.03% at Rs 555.80. The stock hit high of Rs 559.20 and low of Rs 553.85. Wipro said that the acquisition of Viteos will expand its capital markets portfolio in fund accounting services and enhance its business process services (BPS) capabilities. Viteos licenses its proprietary platform which offers transformation and integration post-trade operations. Wipro said that the company will be able to leverage this proprietary platform to launch solutions across other segments of capital market. These technology based solutions will bring in non-linear and higher revenue realisation for the company. The acquisition would be completed in Q4 March 2016, Wipro said.
Index heavyweight and IT major Infosys rose 1.33% to Rs 1,098. The stock hit high of Rs 1,100 and low of Rs 1,087.
Shares of pharma major Sun Pharmaceutical Industries rose 3.52% to Rs 791.05. The stock hit high of Rs 793.95 and low of Rs 771.
Alkem Laboratories, the fifth largest pharmaceutical company in India by domestic sales, made a strong debut. The stock settled at Rs 1,381.45 on BSE, a premium of 31.56% over the initial public offer price of Rs 1,050 per share. The stock debuted at Rs 1,380, a premium of 31.42% compared with IPO price. The stock hit a high of Rs 1,410 and a low of Rs 1,355.40 in intraday trade.
Dr. Lal PathLabs, a provider of diagnostics and related healthcare tests and services in India, made a solid debut. The stock settled at Rs 824.15 on BSE, a premium of 49.84% compared to the initial public offer (IPO) price of Rs 550 per share. The stock debuted at Rs 717, a premium of 30.36% compared to IPO price. The stock hit a high of Rs 842.40 and low of Rs 715.50 in intraday trade.
The Sensex has declined 295.37 points or 1.12% in this month so far (till 23 December 2015). The barometer index has fallen 1,649.12 points or 5.99% in this calendar year so far (till 23 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,016.76 points or 4.09%. The Sensex is off 4,174.44 points or 13.9% from a record high of 30,024.74 hit on 4 March 2015.
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