Benchmark indices extend gains

After hovering in positive zone in early afternoon trade, key benchmark indices extended gains in afternoon trade. At 13:19 IST, the barometer index, the S&P BSE Sensex, was up 117.50 points or 0.47% at 25,161.93. The 50-unit Nifty 50 index was currently up 38.85 points or 0.51% at 7,649.30. The Sensex retained the psychologically important 25,000 mark. Earlier, the barometer index had fallen below that level when it opened with a downward gap. The Sensex rose 124.94 points or 0.49% at the day's high of 25,169.37 in afternoon trade. The barometer index fell 176.70 points or 0.7% at the day's low of 24,867.73 in early trade, its lowest level since 8 September 2015. The Nifty rose 46.35 points or 0.6% at the day's high of 7,656.80 in afternoon trade. The index fell 59.40 points or 0.78% at the day's low of 7,551.05 in early trade, its lowest level since 8 September 2015.

In overseas stock markets, Asian equities edged lower amid sharpening worries about the stability of the junk-bond market and tumbling oil prices. Lower commodity prices have stirred up concerns that oil and gas companies won't be able to pay back all their debt. Investors were also cautious before the highly anticipated US Federal Reserve policy meeting this week, when officials are widely expected to raise interest rates for the first time in almost a decade from ultralow levels. Higher rates are expected to draw investors back into the US and away from riskier assets, including in emerging markets and Asia. The Fed is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 15-16 December 2015. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done.

US stocks tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. News during the previous day on 10 December 2015 that high-yield mutual fund Third Avenue Focused Credit Fund is blocking investors from withdrawing their money, added to market jitters.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,473 shares rose and 925 shares fell. A total of 189 shares were unchanged. The BSE Mid-Cap index was currently up 0.83%. The BSE Small-Cap index was currently up 0.55%. Both these indices outperformed the Sensex.

FMCG shares edged higher. Hindustan Unilever (up 2.2%), Tata Global Beverages (up 1.09%), Britannia Industries (up 1.5%), Bajaj Corp (up 0.23%), Colgate Palmolive (India) (up 0.86%), Godrej Consumer Products (up 0.52%), Marico (up 0.12%) and Emami (up 0.67%) gained. Dabur India (down 1.59%), GlaxoSmithkline Consumer Healthcare (down 0.8%), Jyothy Laboratories (down 0.13%) and Nestle India (down 1%) declined.

Shares of Procter & Gamble Hygiene and Health Care were unchanged at Rs 5,600.

Telecom stocks rose. Mahanagar Telephone Nigam (up 6.13%), Reliance Communications (up 4.73%), Idea Cellular (up 2.32%) and Tata Teleservices (Maharashtra) (up 2.28%) edged higher. Bharti Airtel (down 1.03%) declined.

Ashapura Intimates Fashion rose 3.54% at Rs 257.40 after the company said that it will inaugurate its exclusive brand outlet store at Vashi, New Mumbai on 15 December 2015. The company made the announcement during market hours today, 14 December 2015.

Global Offshore Services fell 1.02% at Rs 365. The stock was volatile. The stock hit a high of Rs 380.30 and a low of Rs 363.35 so far during the day. Global Offshore Services after market hours on Friday, 11 December 2015, announced that it has sold its old anchor handling tug cum supply vessel.

On the macro front, the latest data showed that inflation based on the wholesale price index (WPI) remained in negative zone in November 2015. WPI stood at negative 1.99% in November 2015 compared to a reading of negative 3.81% for October 2015.

Meanwhile, India's Index of Industrial Production (IIP) growth surged to 60-months high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015. An extremely farvourable base effect with IIP declining 2.7% in October 2014 has mainly fuel the IIP growth for October 2015. Also, the festive season shifting to November this year compared with October in last year, aided IIP growth in October 2015 driven by pre-festive season surge in production. The data was announced by the government after market hours on Friday, 11 December 2015.

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