Sensex ends 174 points up ahead of US Fed decision, Nifty settles at 7,751

The BSE Sensex and NSE Nifty extended gains for the third consecutive trading session on Wednesday on account of buying in front line blue chip stocks as investors awaited the Fed’s decision on interest rates later in the day. Sensex closed 173.93 points up at 25,494.37, while Nifty closed 50 points up at 7,750.90.

Traders also drew some comfort with Finance Minister Arun Jaitley making a fresh bid to end the deadlock on GST bill and reaching out to main opposition Congress. He hinted that the government is willing to scrap the proposed 1 per cent additional tax levy under the goods and services tax (GST) regime, but ruled out putting the new tax rate under GST in the Constitution amendment bill itself or setting up a dispute resolution panel.

In the 50-share index, Bharti Airtel, ONGC, Cairn India, Power Grid and Idea Cellular gained between 2.65 per cent and 4.10 per cent. On the other hand, M&M, Asian Paints, ITC, Hindalco and PNB slid between 0.50 per cent and 5.30 per cent.

Barring the BSE Auto index (down 0.58 per cent), BSE FMCG index (down 0.58 per cent) and BSE Consumer Durables index (down 0.51 per cent), rest all other sectoral indices closed in green. The BSE Oil & Gas index and BSE Power index gained 1.71 per cent and 1.30 per cent, respectively.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The Domestic market reacts in line with the global peers, as the consensus of 25 basis points rate hike by FED has been already factored in, which may be unveiled later today. The focus of investors has now shifted to the further outlook from the FED chairman.”

In the scrip specific development, M&M and select auto stocks came under selling pressure after the Supreme Court agreed to ban registration of diesel SUVs and cars over 2000 cc. M&M shares settled 5.43 per cent down at Rs 1,219.

Indraprastha Gas gained nearly 7 per cent as it is considered as beneficiaries from the government’s focus on cleaner fuel to tackle pollution.

PSU oil marketing companies surged 1-3 per cent on account of lower-than-expected cut in petrol and diesel prices. Petrol and diesel prices on Tuesday were cut by 50 paise and 46 paise a litre, respectively. Though, the government has raised excise duty on petrol and diesel taking advantage of the fall in global crude prices. The duty on petrol has been raised by 30 paise a litre while that on diesel is up by a steeper Rs 1.17 per litre.

Country’s third largest software services firm Wipro said recent floods in Chennai will have a “material impact” on its December quarter revenues and hurt its operating margins. The share price of Wipro closed 0.38 per cent down at Rs 556.50.

Overall market breadth for the day remained positive as advances to declines ratio for Nifty stood at 37:13 for the day.

Asian equity markets ended in green on Wednesday, with sentiment helped by broad gains on Wall Street before an expected rise in US interest rates later in the day. Hong Kong stocks rebounded and breaking a nine-session losing streak as energy shares surged.

Chinese shares closed higher, with energy stocks gaining ground after China’s top planning body, the National Development and Reform Commission, suspended a retail oil price cut that was scheduled for Wednesday and said it would adjust the current pricing mechanism in a bid to combat air pollution, and news that China plans to issue significantly more government bonds next year to aid the economy.

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Markets through the day

3.30 pm: Sensex closed 173.93 points up at 25,494.37, while Nifty closed 50 points up at 7,750.90.

2.49 pm: European shares edged higher on Wednesday, mirroring gains on Wall Street and in Asia, with investors awaiting the outcome of a crucial rate-setting meeting of the US Federal Reserve for hints about the market’s near-term direction.2.55 pm: NTPC shares gained as much as 2.66 per cent as the company has received green signal to a power project in Telangana by the Ministry of Environment and Forests.

2.20 pm: Arcotech has received an order from India Government Mint (IGM), Mumbai for supply of 6,000 MT Nickel Brass Coils worth Rs 268.30 crore with an option of another 25 per cent order making it an aggregate order of Rs 335.37 crore. The share price of the company gained as much as 8.69 per cent intra-day on Wednesday.

2.14 pm: Gayatri Projects informed stock exchanges that the company in joint venture with Vishwa Infrastructures and Services has bagged a new order worth Rs 143.42 crore from the Government of Mizoram. Shares of Gayatri Projects were trading 0.95 per cent up at Rs 720.  The project involves the construction and completion of water distribution & feeder mains by providing and laying DI pipes of 185 Km and GI pipes of 71 Km as well as some road restoration. The project is being financed by the Asian Development Bank (ADB) and shall be completed in 48 months. The resulting infrastructure will supply water to the city of Aizwal, the capital of Mizoram. Sensex was up 182 points at 25,503.

2.05 pm: Meanwhile, Marico informed that the company has fixed Record Date as December 24, 2015 to ascertain the members entitled to receive Bonus Equity Shares. The share price of Marico was trading 0.79 per cent up at Rs 436.20.

1.49 pm: After hitting an upper circuit on Tuesday, Lux Industries shares extended gains and were trading 6.78 per cent up at Rs 3,830.10. Nifty 50 index was up 42 points at 7,743. Sensex was up 151 points 25,471.98.

1.44 pm: Sensex and Nifty pared some more gains. The benchmark index was trading 123 points up at 25,443. Nifty50 was up 37.15 points at 7,738.

1.39 pm: Sensex was up 171 points at 25,491. Nifty was up 47.20 points at 7748.10. Shares related to automobile companies were trading mixed on the bourses after the Supreme Court banned registration of luxury diesel cars until March 31, 2016.

1.20 pm: Foreign portfolio investors (FPIs) bought shares worth a net Rs 48.67 crore on Tuesday as per provisional data released by the stock exchanges. Sensex was up 190.82 points at 25,511. Nifty was up 59.80 points at 7,760.70.

12.59 pm: Share price of NTPC jumped over 2 per cent after the Ministry of Environment and Forests gave ‘green signal’ to a power project being set up by state-owned NTPC in Telangana while it has deferred another project of the PSU in Andhra Pradesh. Sensex was up 206 points at 25,527.

12.28 pm: Alkem Laboratories shares are expected to list on exchanges on or before December 29, according to a source familiar with the listing. The healthcare major raised Rs 1,350 crore in its initial public offering after pricing shares at Rs 1,050 each. Sensex was up 241.56 points at 25,562. Nifty was up 72.30 points at 7,773.20.

12.18 pm: The Supreme Court banned on registration of diesel cars above 2000 cc in Delhi for 3 months – Jan 2016 to Mar 2016. According to Mihir Jhaveri, director, institutional research, Religare Capital Markets, the impact for Mahindra & Mahindra is minor as Delhi only forms around 2 per cent of its passenger vehicle sales. The decision may impact consumer sentiment for buying a diesel vehicle and whether this ban could percolate to other regions. M&M share price was down 4.19 per cent at Rs 1,235.10.

12.09 pm: Everest Kanto Cylinder shares surged over 15 per cent after court orders Delhi taxis to replace diesel with CNG. The company manufactures CNG cylinders. The scrip was trading 16.34 per cent at Rs 15.31. Sensex was up 214 points at 25,534.

11.52 am: In a bid to check generation of domestic black money, the government will soon issue a notification making quoting of PAN mandatory for all cash transactions beyond Rs 2 lakh, Finance Minister Arun Jaitley said on Tuesday. According to JM Financial, This move to have a temporary adverse impact on the organised jewellery trade where the size of transactions tend to be on the higher side. Share price of Shree Ganesh Jewellery and Rajesh Exports were trading 7.69 per cent and 1 per cent up at Rs 10.50 and Rs 688.40. On the other hand, Titan Company shares were trading 2 per cent down at Rs 356.50 apiece.

“This move would adversely affect investor sentiments on jewellery stocks like Titan, but at the same time, a section of the Street could be relieved that the revised limit is not as low as originally proposed,” said JM Financial.

11.35 am: In a bid to expand its fast-growing cattle-feed business, Hatsun Agro Product is planning to acquire feed mill in Tamil Nadu. The company’s board will meet on December 23 to consider a proposal to acquire a feed mill. Hatsun Agro Product shares were trading 0.98 per cent up at Rs 409. Sensex was up 186 points at 25,506.

11.20 am: Share price of gas distributing companies GAIL, Indraprastha Gas (IGL), Petronet LNG and Gujarat Gas rose in the morning trade on Wednesday as these companies are seen as key beneficiaries from government and judiciary’s focus on pollution. GAIL, IGL and Petronet LNG were trading 4.27 per cent, 3.43 per cent and 1.97 per cent up at Rs 354, Rs 484.60 and Rs 243.80, respectively. Gujarat Gas was trading 5.94 per ent up at Rs 602. According to market experts, focus to control pollution in Delhi will benefit IGL.

10.39 am: In the 50-share index, Cairn India, Tech Mahindra, BPCL, ONGC and BHEL were up between 1.05 per cent and 2.55 per cent. On the other hand, M&M, Tata Motors, Bosch, Bank of Baroda and Wipro were down between 0.28 per cent and 3.89 per cent. Nifty 50 index was up 56.75 points at 7,757. Sensex was up 200.97 points at 25521.41.

10.01 am: Sensex was up 175.61 points at 25,496. Nifty50 index was up 57.70 points at 7,758.60. For the second time in row, PSU oil marketing companies (OMCs) have slashed price of petrol and diesel by 50 paise per litre and 46 paise per litre respectively. The net impact of the crude oil prices and rupee depreciation have warranted a reduction of at least Rs 2 per litre but the reduction is much lower than an anticipated decrease as oil companies left cushion for the government to mop up gains accruing from global oil prices dipping to multi-year lows and also the government may like to raise excise duty on the two fuels to mop up its revenues as it has done five times in last one year.

9.54 am: Mahindra and Mahindra shares were down over 5 per cent at Rs 1219.85 in early trade as the Supreme Court is expected to decide on Wednesday whether to ban registering diesel SUVs and luxury cars with an engine capacity of over 2000 CC in Delhi to curb air pollution. Investors believe the impact on M&M will be significant as most of its models do not have a non-diesel variant. The BSE Auto index was down 0.32 per cent at 18,068.61. 

9.52 am: Brokers said pick-up in buying by participants, in step with a firming trend at other Asian bourses and overnight gains in the US and European markets ahead of the outcome of a Federal Reserve meeting which is likely to see a long-awaited interest rate rise, influenced sentiments.

9.42 am: The rupee rose by 4 paise at 66.88 against the US dollar in early trade today at the Interbank Foreign Exchange on continued selling of the American currency by exporters and banks.

9.17 am: After Tata Consultancy Services, another IT major Wipro on Wednesday informed the bourses that the recent floods and rains in Chennai will have a material impact on its third-quarter earnings. The share price of Wipro was down 0.35 per cent in the early trade. Sensex was up 112.39 points at 25,432.

9.15 am: The BSE Sensex and NSE Nifty opened in green on Wednesday tracking firm global cues. Indian markets will also keep an eye on the US Federal Reserve meet that began on Tuesday, where the central bank is expected to announce a 25 basis points rate hike. Sensex opened 82.03 points up at 25402.47, while Nifty 50 index opened 24.35 points up at 7,725.25.

Asian stocks gained on Wednesday, with sentiment lifting as Wall Street rose before a likely hike in the US interest rates, while the dollar held to large gains made as Treasury yields picked up.

At 8.33 am (IST), Hang Seng, Nikkei and Shanghai were up 2.25 per cent, 2.13 per cent and 0.44 per cent, respectively.

Back home, the BSE Sensex and NSE Nifty on Tuesday extended gains for the second day on account of short coverings and value buying in front line blue chip stocks. 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 Tuesday. On the other hand, Tech Mahindra, Punjab National Bank, Wipro and ICICI Bank slid between 1.30 per cent and 4.15 per cent.

Sugar stocks will remain in focus on Wednesday. A bill seeking to raise the sugar cess ceiling from Rs 25 to Rs 200 per quintal was passed by the Lok Sabha on Tuesday, with the government saying it will help cane-growers who are in crisis as it can facilitate rehabilitation and modernisation of sugar factories.

State-owned power equipment maker Bhel has commissioned a 500 mw thermal power plant in West Bengal.

(With agency inputs)