Losses for telecom stocks and index heavyweight L&T pulled key benchmark indices off their highest level in more than 9 weeks. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 190.19 points or 0.7% at 27,477.85. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty was currently up 44.60 points or 0.54% at 8,296.30. The Sensex and the Nifty both hit their highest level in more than 9 weeks at the onset of the trading session on firm global stocks.
Asian and European stocks edged higher after the European Central Bank (ECB) signaled its readiness to expand its ongoing bond-buying program. After the conclusion of ECB's regular monetary policy meeting yesterday, 22 October 2015, ECB President Mario Draghi indicated at a press conference that the central bank could move next month to expand stimulus measures in the face of sluggish global growth that is exacerbating worries about persistently low inflation in the eurozone. The ECB embarked on a massive bond-buying program in March this year. US stocks surged yesterday, 22 October 2015, rallying on economic data, better-than-expected earnings and dovish comments from Draghi.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,365 shares rose and 1,075 shares fell. A total of 161 shares were unchanged. The BSE Mid-Cap index was down 0.01%. The BSE Small-Cap index was up 0.13%. Both these indices underperformed the Sensex.
Shares of oil exploration & production firms gained along with crude oil prices. Reliance Industries (up 0.55%), Oil India (up 0.39%) and ONGC (up 2.05%) edged higher.
Global crude oil prices rose in the global commodities markets amid prospects of expansion of stimulus measures from the ECB. Brent for December settlement was currently up 39 cents at $48.47 a barrel. The contract had risen 23 cents or 0.48% to settle at $48.08 a barrel during the previous trading session.
Cairn India edged higher after reporting a smaller-than-expected fall in second-quarter profit. The stock was up 3.18% at Rs 158.95. The company's consolidated net profit fell 70.46% to Rs 672.67 crore on 39.95% decline in total income to Rs 2743.28 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Wednesday, 21 October 2015.
Cairn India's revenue fell 44% to Rs 2242 crore in Q2 September 2015 over Q2 September 2014, mainly due to decline in crude prices.
In the wake of sustained low crude price environment, Cairn India said that it is actively engaging with the government along with other industry players on various strategic issues, which include a revision of the cess charged on oil production to be in-line with crude prices, PSC Extension policy and fair price realization of domestically produced hydrocarbons amongst others. Mayank Ashar, Managing Director and CEO of Cairn India said that with good visibility in near term on multiple projects in the pipeline, the management is optimistic of the company meeting its production projections for the current financial year.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 0.79%) and Indian Oil Corporation (up 0.58%) gained. HPCL (down 0.87%) edged lower.
Telecom stocks declined. Bharti Airtel (down 2.83%) and Reliance Communications (down 2.15%) edged lower. Tata Teleservices (Maharashtra) (up 2.27%) and Mahanagar Telephone Nigam (up 0.27%) edged higher.
Idea Cellular lost 5.61% at Rs 143.10 after consolidated net profit dropped 13.06% to Rs 809.26 crore on 1.24% decline in total revenue to Rs 8689.06 crore in Q2 September 2015 over Q1 June 2015. The result was announced after market hours on Wednesday, 21 October 2015.
Idea Cellular's consolidated net profit rose 7.06% to Rs 809.26 crore on 13.48% growth in total income to Rs 8722.72 crore in Q2 September 2015 over Q2 September 2014.
Idea Cellular will launch its 4G LTE services in 10 service areas, covering 750 large and small towns by the first half of 2016.
Aurobindo Pharma rose 1.49% at Rs 825.05 after the company said it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Tramadol Hydrochloride Extended-release Tablets USP, 100 mg, 200 mg and 300 mg. Aurobindo Pharma said that Tramadol Hydrochloride Extended-release Tablets USP, 100 mg, 200 mg and 300 mg will be launched in the US by Q4 March 2016. Tramadol Hydrochloride Extended-release Tablets are used in the treatment of moderate-to-severe pain in adults who require around-the-clock treatment for an extended period of time. The approved product had an estimated market size of $56 million in the US for twelve months ended August 2015, according to IMS data.
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