Auto stocks extend recent gains

Key indices hovered in the positive terrain with small gains in mid-morning trade as the Government promulgating the ordinance to amend the Insolvency and Bankruptcy Code, 2016 perked up sentiment. At 11:20 IST, the barometer index, the S&P BSE Sensex, advanced 98.45 points or 0.29% at 33,686.53. The Nifty 50 index rose 33.45 points or 0.32% at 10,382.20.

The market opened higher and held firm in the positive terrain so far during the session.

The S&P BSE Mid-Cap index rose 0.53%. The S&P BSE Small-Cap index advanced 0.6%. Both these indices outperformed the Sensex.

The breadth indicating health of the market was strong. On BSE, 1,506 shares rose and 833 shares declined. A total of 109 shares were unchanged.

Telecom stocks were mixed. Bharti Airtel (up 0.68%), and Reliance Communications (up 1.47%) gained. Tata Teleservices (Maharashtra) (down 2.62%) and Idea Cellular (down 0.31%) declined.

Shares of Bharti Infratel rose 1.42%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Auto stocks gained for the seventh straight day. Mahindra & Mahindra (M&M) (up 0.37%), Ashok Leyland (up 1.66%), Maruti Suzuki India (up 0.51%), Eicher Motors (up 0.72%), Bajaj Auto (up 1.19%), Tata Motors (up 0.5%) and TVS Motor Company (up 0.7%) gained. Hero MotoCorp declined 0.03%.

Gujarat Pipavav Port gained 3.67% to Rs 153.95 after a bulk deal of 5.01 lakh shares was executed on the scrip at Rs 150.05 per share at 09:24 IST on BSE.

On the macro front, the Government of India promulgated yesterday, 23 November 2017, the ordinance to amend the Insolvency and Bankruptcy Code, 2016. Earlier, the President of India had given his assent to the ordinance to amend the code.

The ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the code. The amendments aim to keep-out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company.

In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the committee of creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers.

Overseas, Asian stocks were mixed while investors viewed Chinese shares with caution after their big fall the previous day. Japanese manufacturing activity expanded at the fastest pace in more than three years in November, a preliminary survey showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) rose to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.

US stock markets remained closed yesterday, 23 November 2017 on account of Thanksgiving holiday.

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