The BSE Sensex and NSE Nifty extended gains for the second day on account of short coverings and value buying in front line blue chip stocks ahead of the crucial Fed policy meeting. Sensex closed 170.09 points up at 25,320, while Nifty50 index settled 50.85 points up at 7,700.90.
In the 50-share index, Bosch, HUL, Lupin, ONGC and Reliance Industries gained between 2.15 per cent and 3.10 per cent. On the other hand, Tech Mahindra, Punjab National Bank, Wipro and ICICI Bank slid between 1.30 per cent and 4.15 per cent.
Among the sectoral indices on the BSE, the BSE Metal index and BSE TECk index slid 0.22 per cent and 0.06 per cent. On the other hand, BSE Consumer Durables and BSE Auto index gained 1.50 per cent and 1.31 per cent, respectively.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “We have seen a defensive buying in the market just before the Fed meet which starts later today. We feel that the market has already factored the consensus rate hike expectation of 25 basis points. On the domestic front, November CPI inflation has moved up to 5.4 per cent, which is just below the 5.8 per cent targeted by RBI for January, 2016. This may limit the room for further rate cut by RBI in the near-term.”
In a scrip specific development, Lux Industries share price hit upper circuit on the National Stock Exchange after changes in circuit limit were implemented. The scrip jumped 20 per cent to Rs 3,607.95 on Tuesday after the exchange transferred the stock from trade for trade segment to rolling segment. It was kept in trade for trade segment for 11 trading sessions. As a result, the circuit limit of Lux Industries changed from 5 per cent to 20 per cent now.
National Building Construction Company (NBCC) gained over 3 per cent after the state-run engineering and construction firm has been awarded the work to carry out work on feasibility study and entry-level activities under the Clean Ganga project for all towns and cities of Bihar on the bank of the river. The share price of the realt estate major closed 3.78 per cent up at Rs 992.65.
Overall market breadth for the day remained positive as advances to declines ratio for Nifty stood at 32:16 for the day.
European markets were trading with good gains, UK’s FTSE 100 increased 102.25 points or 1.74 per cent to 5,976.31, France’s CAC was up by 106.5 points or 2.38 per cent to 4,579.57 and Germany’s DAX gained 228 points or 2.25 per cent to 10,367.34.
Asian equity markets ended mixed on Tuesday after crude oil prices which have been on the decline lately, rose in US trading session. Japanese shares though declined to a 7-1/2-week low, as investors avoided riskier assets ahead of the historic Federal Reserve meeting ending Wednesday. The US central bank is widely expected to raise its target range for the federal funds rate to 0.25-0.50 per cent, bringing an end to the seven-year period of near-zero interest rates. Chinese stocks too ended slightly lower, with a correction in banking and resource shares countering a surge in property firms that was triggered by hopes of more support measures for the real estate market.
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Markets through the day
3.30 pm: Domestic equity markets extended their gaining streak to the second day, and despite some choppiness in early deals managed to post decent gains, supported by short covering and value buying ahead of the crucial Fed policy meeting. Sensex closed 170.09 points up at 25,320, while Nifty50 index settled 50.85 points up at 7,700.90.
3.15 pm: Reliance Industries and Bosch were up 2.06 per cent and 3.64 per cent. Nifty 50 index was up 54 points at 7704. Sensex was up 176 points at 25,327.
2.47 pm: European shares rose on Tuesday to bounce back from stinging losses in the previous session, as gains in major French companies propped up the region’s equity markets.
2.46 pm: Shares of Adani Enterprises were up 4.59 per cent at Rs 78.55. In a relief to Indian mining giant Adani Group, an Australian court on Tuesday rejected a bid by environmentalists to stop its $16.5 billion controversy-hit Carmichael coal mine project, saying the firm can go ahead if it agrees to some environmental measures. Sensex was up 160 points at 25,310. Nifty was up 46.65 points at 7,692.
2.28 pm: On the global front, the Asian markets were trading mostly in red, while the European markets were trading on optimistic note.
1.58 pm: Sensex up over 103 points at 25,253. Nifty was up 19.65 points at 7,669. Tech Mahindra share price fell over 3 per cent intra-day on Tuesday after the IT major and Mahindra and Mahindra announced that they have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A., an iconic Italian brand in automotive and industrial design.
1.35 pm: Sensex was up over 50.08 points at 25,200. Nifty was up 12.95 points at 7,663. Kalyani Forge is planning to increase its turnover by two fold to Rs 500 crore in the next 2-3 years by entering a new product range and expansion. The company is expanding its machined components capacity by 25 percent, which is expected to be ready by the current fiscal year. Share price of Kalyani Forge was trading 3.83 per cent up at Rs 287.60.
1.01 pm: Shares of Lux Industries were trading 16.74 per cent up at Rs 3,510 on NSE. Nifty 50 index was marginally up 2.70 points at 7,652.
12.56 pm: Share of Sun Pharma was trading 1.22 per cent higher after the company’s subsidiaries entered into an agreement with Nostrum Laboratories for sale of the Bryan (Ohio) unit in the US. The BSE Healthcare index was up 0.40 per cent at 16,322.
12.39 pm: Natco Pharma received approval from the Drugs Controller General of India (DCGI) to launch generic version of Gilead Sciences’ hepatitis C treatment drug in India. The share price of Natco Pharma was marginally down 0.13 per cent at Rs 548. Sensex was up 29 points at 25,179.
12.09 pm: Benchmark indices were trading marginally in green in early noon session, as investors got some encouragement with the report of global rating agency Fitch stating that India will continue to post good growth despite subdued prospect for the Asia Pacific region amid an expected rise in US rates, dollar strength and lower commodity prices.
11.43 am: Shares of hospitality chain Hotel Leelaventure gained as much as 5 per cent intra-day on Tuesday on completion of Rs 725-crore sale of its Goa property to Ceres Hotels. The scrip was trading 2.72 per cent up at Rs 20.80.
11.19 am: Jain Irrigation share price climbed over 3 per cent in the morning trade on Tuesday after the Andhra Pradesh government has allotted over 623 acres of land to the company for setting up an integrated agriculture and horticulture park in Kurnool district of the state. The scrip was trading 3.35 per cent up at Rs 63.30.
11.06 am: Life Insurance Corporation of India (LIC) has bought 2.7 lakh shares or 0.1 per cent stake of Bharat Forge from the open market. Following the acquisition, LIC’s stake in the forging company rose to 5 per cent from 4.9 per cent earlier. The share price of Bharat Forge was up 1.04 per cent at Rs 803.35. Sensex was down 37.74 points at 25,112.
10.50 am: According to sources, YES Bank on Tuesday declared its advance tax figures on Tuesday. The payment increased 38.11 per cent in December 2015 to Rs 424 crore from Rs 307 crore in December 2014, they said. The share price of YES Bank was up 0.88 per cent at Rs 688.20. Sensex was marginally down 0.05 per cent at 25,136.83. Nifty was down 0.06 per cent at 7,645.45.
10.33 am: In the 50-share index, Cairn India, Bank of Baroda, Sun Pharma, YES Bank and ONGC were up between 0.65 per cent and 1.50 per cent. On the other hand, Tata Motors, Idea Cellular, ICICI Bank, ITC and Mahindra and Mahindra were down between 0.50 per cent and 0.90 per cent. Nifty50 index was down 12.15 points at 7,637.90.
10.01 am: The rupee appreciated by 11 paise to 66.98 against the dollar in early trade on Tuesday on increased selling of the American currency by exporters and banks.
9.28 am: MOIL share price was trading 6.95 per cent up at Rs 222.35. A total of 1.02 lakh shares exchanged hands so far on BSE, which were nearly 7 times the two-week average. Sensex was marginally down 0.10 per cent at 25,126.
9.24 am: Delhi High Court sought the government’s response on whether it would buy the excess “sweet” crude, containing higher levels of sulphur, produced by Cairn India’s Rajasthan oil field and if not, can the company export it. The share price of Cairn India was trading 1.01 per cent up at Rs 126.20. The BSE Oil & Gas index was up 0.42 per cent at 9,033.85.
9.16 am: Share price of Tech Mahindra was trading 0.40 per cent down at Rs 540.55. Nifty was down 3.75 points at 7,646.30. Automaker Mahindra & Mahindra, with its IT arm Tech Mahindra, will buy 76.06 per cent of Pininfarina for 25.3 millon euros ($28 million). Pininfarina had net debt of $48 million as on September 2015, hence the EV of the business is over $106 million, according to Reuters calculations.
9.15 am: The BSE Sensex and NSE Nifty opened on flat-to-cautious note on Tuesday tracking mixed Asian markets ahead of the US Federal Reserve meet, which is slated to begin later in the day. Sensex opened 36.33 points, or 0.14 per cent, up at 25186.68. Nifty opened 9.10 points up at 7,659.15.
Asian markets were mixed on Tuesday, as investors were reluctant to make any big moves amid volatile crude oil and before a widely anticipated US interest rate increase by the Federal Reserve later this week. Hang Sensex and Shanghai were up 0.46 per cent and 0.14 per cent, while Nikkei were down 0.73 per cent in the morning trade.
On Wall Street, major indexes erased early losses and marked gains, as oil prices recovered slightly. Dow closed 0.60 per cent up at 17,368.50.
US crude was down 0.2 per cent at $36.24 after falling as low as $34.53 on Monday before ending nearly 2 per cent higher. Brent crude fell as low as $36.33 a barrel on Monday, its weakest since December 2008. A fall below $36.20 would take oil down to levels not seen since 2004.
Back home, the BSE Sensex on Monday rebounded from over three-month lows by rising 106 points to 25,150.35 on better-than-expected factory output data, even as the market mood remained muted ahead the US Federal Reserve meet.
On similar lines, the NSE Nifty, which dipped below the 7,600-level intra-day to hit a low of 7,551.05 and finally settled 39.60 points or 0.52 per cent higher at 7,650.05 after the day’s high of 7,663.95.
Retail inflation rose to 5.41 per cent in November, 4th straight month of uptick as prices of vegetables, pulses and fruits went up further to push the rate of price rise above the Reserve Bank’s comfort level.
Shares of Tata Motors, NHPC and Tata Steel will remain in focus on Tuesday. Tata Motors on Monday post market hours said that it will hike price of its entire passenger vehicle model range by up to Rs 20,000 from January.
Hydro power major NHPC said it will temporary shut down 520 MW Parbati project in Himachal Pradesh till February next year for carrying out repair and maintenance work. The Parbati-III Power Station (4X130 MW) in Himachal Pradesh “shall be complete shutdown w.e.f. December 15, 2015 to February 15, 2016 to carry out repair of pressure shaft, sealing of surge shaft gate & MIV seals and annual maintenance of units”, NHPC said in a filing to the BSE.