Key indices were trading firm in morning trade after an initial upmove triggered by positive Asian stocks. At 10:24 IST, the barometer index, the S&P BSE Sensex, was up 264.83 points or 0.74% at 36,118.39. The Nifty 50 index was up 82.90 points or 0.77% at 10,820.50
The Sensex was trading above the psychological 36,000 level after regaining that level in early trade. Domestic stocks opened on a firm note on positive Asian stocks.
On the macro front, the all-India general CPI inflation eased to 2.19% in December 2018 (new base 2012=100), compared with 2.33% in November 2018. The corresponding provisional inflation rate for rural area was 1.65% and urban area 2.91% in December 2018 as against 1.71% and 3.12% in November 2018. The core CPI inflation was flat at 5.73% in December 2018 compared with 5.70% in November 2018. The data was announced after market hours yesterday, 14 January 2019.
The S&P BSE Mid-Cap index was up 0.54%. The S&P BSE Small-Cap index was up 0.6%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1228 shares rose and 579 shares fell. A total of 86 shares were unchanged.
Overseas, Asian stocks were trading higher as markets recovered from the impact of weak economic data in Europe and China that sparked concerns about slowing global growth.
US stocks closed lower Monday as weaker-than-expected China trade data sparked fresh fears of a global economic slowdown. Corporate results were also in the spotlight as fourth-quarter earnings season got under way.
In Europe, Brexit concerns will rise to the forefront this week as UK lawmakers get ready to vote on Prime Minister Theresa May's separation deal with the European Union Tuesday. UK opposition leader Jeremy Corbyn said Sunday the Labor Party would push for a general election if Parliament rejects May's deal, and that he might force a vote of no-confidence soon.
Back home, Yes Bank (up 4.35%), Reliance Industries (up 2.42%), Infosys (up 2.27%), Asian Paints (up 1.63%) and Coal India (up 1.17%) edged higher from the Sensex pack.
Bharti Airtel fell 0.9%. With reference to news item captioned, "Bharti Airtel releases payment to Aircel to meet staff salaries, maintain assets," Bharti Airtel clarified after market hours yesterday, 14 January 2019, that it had, on behalf of Aircel and Dishnet Wireless (Aircel Entities), procured and submitted certain bank guarantees amounting to approximately Rs 453 crore to the Department of Telecommunications (DoT). The amount of the bank guarantees were deducted from the consideration to be paid to the Aircel entities for the spectrum being traded with Aircel entities in the year 2016. These were business transactions, the information of which was provided to the stock exchange on 8 April 2016. The bank guarantees were procured by Airtel against its credit lines with Axis Bank and Airtel was exposed to the extent of the bank guarantees' amounts towards Axis Bank, until the bank guarantees were to be returned in original or were to be irrevocably cancelled. The said bank guarantees were to be returned by the DoT as per the order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) dated 9 January 2018 in a matter between the Aircel entities and the DoT, which was not being done by the DoT.
Based on an appeal by the Aircel entities, the Supreme Court on 8 January 2019, passed orders to the effect that the said bank guarantees shall stand cancelled and shall no longer be used for any purpose whatsoever. Basis the cancellation of the bank guarantees and the consequent release of the credit lines of Bharti Airtel by Axis Bank, Airtel paid the amounts owed by it to the Aircel entities on 10 January 2019. These are routine transactions and Airtel has acted in accordance with the orders of the Supreme Court and the TDSAT, Bharti Airtel said.
ICICI Securities dropped 4%. On a consolidated basis, ICICI Securities' net profit fell 34.28% to Rs 101.17 crore on 18.04% decline in total income to Rs 404.75 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 14 January 2019.
Tata Metaliks declined 1.68%. Tata Metaliks' net profit fell 1.8% to Rs 39.63 crore on 11.5% rise in net sales to Rs 546.37 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 14 January 2019.
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