Benchmark indices eke out small gains

A divergent trend for various index constituents resulted in small gains for the two key benchmark indices. The barometer index, the S&P BSE Sensex, rose 43.12 points or 0.17% to 26,050.42, as per the provisional closing data. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 17.25 points or 0.22% to 7,979.90, as per the provisional closing data. The Sensex provisionally ended above the psychologically important 26,000 mark. The barometer index alternately moved above and below that level earlier during the trading session. A rally took the Sensex past the psychologically important 26,000 mark yesterday, 26 April 2016.

The Sensex rose 85.63 points, or 0.33% at the day's high of 26,092.93 in mid-afternoon trade, its highest level since 4 January 2016. The index fell 122.06 points, or 0.47% at the day's low of 25,885.24 in early trade. The Nifty rose 28.35 points, or 0.36% at the day's high of 7,991 in mid-afternoon trade, its highest level since 6 November 2015. The index fell 22.10 points, or 0.28% at the day's low of 7,940.55 in early trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,287 shares fell and 1,275 shares rose. A total of 197 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.13%, underperforming the Sensex. The BSE Small-Cap index provisionally rose 0.28%, outperforming the Sensex.

The total turnover on BSE amounted to Rs 2489 crore, lower than turnover of Rs 2685.52 crore registered during the previous trading session.

In overseas stock markets, the main European markets witnessed a mixed trend. Earlier during the global day, Asian stocks declined as traders awaited policy decisions from the Federal Reserve and the Bank of Japan. The Bank of Japan's (BOJ) two-day monetary policy meeting began today, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.

US stocks closed with mixed results yesterday 26 April 2016, ahead of a barrage of tech earnings and monetary policy statement from the Federal Reserve. The Federal Reserve's two-day policy meeting concludes today, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future interest rate increases.

Index heavyweight and cigarette major ITC rose 1.40% to Rs 332.30. The stock hit a high of Rs 334.20 and a low of Rs 326.45 in intraday trade.

Telecom major Bharti Airtel gained 3.63% to Rs 373.50 ahead of its Q4 results today, 27 April 2016. Along with the Q4 results, the company's board of directors will also consider a proposal for buyback of equity shares of the company.

Telecom towers firm Bharti Infratel rose 3.24% to Rs 375.60 after consolidated net profit rose 19% to Rs 661.70 crore on 7% growth in revenue to Rs 3161.90 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 26 April 2016. Bharti Infratel's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 1443.90 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 45.7% in Q4 March 2016, from 45.1% in Q4 March 2015.

Bharti Infratel's board of directors at its meeting held yesterday, 26 April 2016, approved the proposal to buyback equity shares of the company on a proportionate basis through a tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 2000 crore at a maximum price of Rs 450 per share. At maximum buyback price, the buyback translates into approximately 4.44 crore equity shares of the company, representing 2.34% of the total paid up equity share capital of the company.

Shares of oil exploration and production companies rose as global crude oil prices surged. Cairn India (up 1.10%), Oil India (up 2.79%), ONGC (up 3.34%) and Reliance Industries (up 0.17%) edged higher. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.

Crude oil prices rose in the global commodities markets after weekly data from the American Petroleum Institute showed decline in US crude inventories last week. Brent for June settlement was currently up 46 cents at $46.20 a barrel. The contract had risen $1.26 a barrel or 2.83% to settle at $45.74 a barrel during the previous trading session.

Shares of public sector oil marketing companies rose. HPCL (up 0.18%), BPCL (up 0.38%) and Indian Oil Corporation (up 0.66%), edged higher.

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