Key benchmark indices trimmed gains in mid-afternoon trade as European shares slipped in early trade there. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 124.69 points or 0.47% at 26,474.86. The Nifty 50 index was currently up 45.30 points or 0.56% at 8,172.20.
Earlier, after opening higher, key indices extended gains and hit their highest levels in almost two weeks. The Sensex rose 236.90 points, or 0.89% at the day's high of 26,587.07 in afternoon trade, its highest level since 16 November 2016. The index rose 7.39 points, or 0.03% at the day's low of 26,357.26 at onset of day's trading session. The Nifty rose 70.45 points, or 0.86% at the day's high of 8,197.35 in afternoon trade, its highest level since 16 November 2016. The index rose 1.80 points, or 0.02% at the day's low of 8,128.70 at onset of day's trading session.
The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,687 shares rose and 806 shares declined. A total of 171 shares were unchanged. The BSE Mid-Cap index was currently up 0.87%. The BSE Small-Cap index was currently up 1.06%. Both these indices outperformed the Sensex.
Metal and mining stocks fell. Vedanta (down 0.18%), JSW Steel (down 0.86%), Steel Authority of India (Sail) (down 0.97%), Hindustan Zinc (down 0.58%), Jindal Steel & Power (down 0.71%), Hindalco Industries (down 0.98%), NMDC (down 0.49%), Hindustan Copper (down 1.63%) edged lower. National Aluminium Company rose 1.31%.
Shares of Tata Steel rose 0.92%. Tata Steel UK announced the signing of a letter of intent with Liberty House Group to enter into exclusive negotiations for the potential sale of its Speciality Steels business for an enterprise value of 100 million subject to due diligence and corporate approvals.
The letter of intent covers several South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China. Speciality Steels employs about 1,700 people making steels for the aerospace, automotive and the oil & gas industries. The announcement was made after market hours today, 28 November 2016.
Tata Steel UK has invested 1.5 billion of capital over the last nine years. The company's boards consider the technical feasibility and economic returns of investments when taking decisions, as well as their affordability. The company is pursuing a transformation plan to create a sustainable future for its UK strip products business. The success of this plan is likely to influence decisions on future investments.
Separately, Tata Steel announced that the company at its meeting held on Friday, 25 November 2016, decided to convene an extraordinary general meeting (EGM) on 21 December 2016, pursuant to the special notice & requisition dated 10 November 2016, received from Tata Sons, promoter and principal shareholder of the company, holding 29.75% of the paid-up ordinary share capital of the company, to consider and if thought fit, to pass the resolutions viz. removal of C. P. Mistry as director of the company and removal of Nusli N. Wadia as director of the company. The announcement was made after market hours on Friday, 25 November 2016.
FMCG stocks rose. Britannia Industries (up 2.06%), GlaxoSmithkline Consumer Healthcare (up 1.19%), Colgate-Palmolive (India) (up 1.2%), Dabur India (up 0.7%), Hindustan Unilever (up 0.17%), Nestle India (up 3.21%), Tata Global Beverages (up 1.08%), Jyothy Laboratories (up 0.35%) and Bajaj Corp (up 0.41%) rose. Godrej Consumer Products (down 1.22%), Marico (down 0.04%) and Procter & Gamble Hygiene and Health Care (down 0.47%) fell.
Idea Cellular surged 4.13% on media reports that the company is likely to sell 100% stake in its tower subsidiary. Idea Cellular has dropped its earlier plans to sell a minority stake in the tower business and now it is looking to sell 11,000 telecom towers for close to $1 billion, reports suggested.
Overseas, European shares were trading lower with commodities-related stocks coming under renewed selling pressure after a sharp decline in metals and oil prices. Asian stocks closed on a mixed note ahead of key global events set to take place this week, including a meeting tomorrow, 30 November 2016 between the world's largest oil producers and the release of the US nonfarm payroll report on Friday, 2 December 2016. US stocks declined yesterday, 28 November 2016 for their worst performance in nearly a month, weighed down by a pullback in the financial and consumer discretionary sectors as some investors booked profits on the heels of a record-setting week.
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