Benchmark indices recover after trimming gains

A bout of volatility was witnessed as key benchmark indices recovered after trimming gains in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 188.99 points or 0.72% at 26,555.67. The Nifty 50 index was currently up 57.55 points or 0.71% at 8,127.20. Gains in Asian stocks aided the upmove on the domestic bourses. Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy.

The Sensex rose 219.08 points, or 0.83% at the day's high of 26,585.76 in mid-morning trade, its highest level since 4 November 2015. The index rose 38.60 points, or 0.15% at the day's low of 26,405.28 in early trade. The Nifty rose 71.65 points, or 0.89% at the day's high of 8,141.30 in mid-morning trade, its highest level since 30 October 2015. The index rose 7.40 points, or 0.09% at the day's low of 8,077.05 in early trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,377 shares rose and 871 shares fell. A total of 168 shares were unchanged. The BSE Mid-Cap index was currently up 1.41%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.66%, underperforming the Sensex.

In overseas stock markets, Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy. US equities took a breather yesterday, 26 May 2016, following their steepest two-day advance since March as investors parsed a slew of economic reports. The latest data showed US durable goods orders, housing and initial jobless claims data coming in strong, while capital goods orders and the Kansas City Fed manufacturing survey were weak.

Most capital goods shares edged higher. Suzlon Energy (up 4.56%), BEML (up 3.17%), Siemens (up 2.42%), Bharat Electronics (up 2.28%), Punj Lloyd (up 2.17%), Praj Industries (up 2.10%), Reliance Defence and Engineering (up 1.87%), Thermax (up 1.62%), ABB India (up 1.27%), Crompton Greaves (up 0.41%), Jindal Saw (up 0.25%), Lakshmi Machine Works (up 0.17%) and AIA Engineering (up 0.07%), edged higher. SKF India (down 0.21%), ALSTOM India (down 0.27%), Havells India (down 0.27%) and Alstom T&D India (down 2.34%) edged lower.

Engineering & construction major L&T was down 1.02% to Rs 1,457.55. The stock hit a high of Rs 1,486.60 and a low of Rs 1,453.55 so far during the day.

Telecom shares edged higher. Reliance Communications (up 4.30%), MTNL (up 1.98%), Tata Teleservices (Maharashtra) (up 1.08%), Bharti Airtel (up 0.79%) and Idea Cellular (up 0.66%), edged higher.

Telecom tower company Bharti Infratel was down 0.22% to Rs 389.10.

FDC rose 3.17% after net profit rose 12.9% to Rs 38.25 crore on 10.9% growth in net sales to Rs 238.90 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 26 May 2016.

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