A bout of volatility was witnessed as key benchmark indices trimmed gains after extending intraday gains in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex was up 205.07 points or 0.81% at 25,525.51. The 50-unit Nifty 50 index was currently up 62.10 points or 0.81% at 7,763. The Sensex hit its highest level in more than a week when it jumped 252.46 points or 0.99% at the day's high of 25,572.90 in early afternoon trade. The barometer index gained 52.03 points or 0.2% at the day's low of 25,372.47 in early trade. The Nifty also hit its highest level in more than a week when it rose 75.70 points or 0.98% at the day's high of 7,776.60 in early afternoon trade. The index rose 14.85 points or 0.19% at the day's low of 7,715.75 in early trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,568 shares rose and 869 shares fell. A total of 218 shares were unchanged. The BSE Mid-Cap index was currently up 0.89%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.73%, underperforming the Sensex.
Gains in overseas stocks aided the upmove on the domestic bourses. Asian stocks edged higher after overnight gains for US stocks. Energy sector stocks led gains in US markets yesterday, 15 December 2015, as crude oil prices rose. Meanwhile, the US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting today, 16 December 2015. With markets having already priced in a 25 basis points rate hike this week, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. The US central bank has hinted that it intends to hike rates gradually.
Telecom stocks surged. Bharti Airtel (up 4.2%), Idea Cellular (up 2.85%), Reliance Communications (up 2.18%) and Tata Teleservices (Maharashtra) (up 0.25%) edged higher. Mahanagar Telephone Nigam (down 0.88%) edged lower.
Cement stocks also edged higher. ACC (up 1.06%), Ambuja Cements (up 0.7%), Shree Cement (up 0.31%) and UltraTech Cement (up 0.01%) rose.
Grasim Industries was up 1.36%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Rural Electrification Corporation (REC) rose 1.35% at Rs 217.45 after a large bulk deal of 32.82 lakh shares was executed on the scrip at Rs 218.65 per share at 09:51 IST on BSE today, 16 December 2015.
Arcotech gained 3.2% at Rs 355 after the company announced that it has received an order worth Rs 268.30 crore with an option of another 25% order making it an aggregate order of Rs 335.37 crore, from India Government Mint, Mumbai. The announcement was made after market hours yesterday, 15 December 2015.
Meanwhile, Finance Minister Arun Jaitley reportedly said today, 16 December 2015, that the proposed Goods and Services Tax (GST) rate would be much less than 18%. Jaitley's comments on the GST rate come after a committee headed by Chief Economic Adviser Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report submitted to the government early this month suggested standard GST rate at 17% to 18%. Typically, the majority of the goods and services will be taxed at the standard rate under the GST regime. The Finance Minister was also quoted as saying that the demand to scrap the 1 percent levy under the GST Bill is fair. The GST constitutional amendment bill has been stuck in the Rajya Sabha where the BJP-led NDA lacks a majority. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The bill has been passed by the Lok Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country.
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