Broad market depicts strength

A range bound movement was witnessed as key benchmark indices traded higher in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 253.86 points or 0.99% at 25,844.51. The 50-unit Nifty 50 index was currently up 74.75 points or 0.96% at 7,860.85. Gains in global stocks underpinned sentiment on domestic bourses.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,634 shares rose and 596 shares fell. A total of 179 shares were unchanged. The BSE Mid-Cap index was currently up 0.44%. The BSE Small-Cap index was currently up 0.79%. Both these indices underperformed the Sensex.

In overseas stock markets, Asian stocks edged higher following a positive lead from Wall Street. US stocks shrugged off soft economic data yesterday, 22 December 2015, scoring gains across the board to finish higher for a second straight session.

On the macro front, the latest data showed that India's current account deficit (CAD) declined to $8.2 billion or 1.6% of GDP in Q2 September 2015 from $10.9 billion or 2.2% of GDP in Q2 September 2014. On sequential basis, the CAD witnessed an increase from $6.1 billion or 1.2% per cent of GDP in Q1 June 2015. The RBI said that the decline in CAD in Q2 September 2015 on year-on-year basis was primarily on account of lower trade deficit.

Stocks of public sector companies were in demand. Bharat Heavy Electricals (Bhel) (up 3.22%), GAIL (India) (up 4.27%), Power Grid Corporation of India (up 0.9%), Engineers India (up 0.85%), Coal India (up 1.27%), NHPC (up 1%) and NTPC (up 1.24%) edged higher.

Shares of oil exploration and production (E&P) firms rose as global crude oil prices rose. Reliance Industries (RIL) (up 1.72%), Cairn India (up 1.35%) and Oil India (up 0.07%) edged higher.

ONGC rose 1.32% after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 22 December 2015, gave its approval for investment of Rs 5000 crore by ONGC into the equity share capital of ONGC Videsh (OVL) by conversion of existing loan of equivalent amount into equity. This will strengthen the capital base of OVL which in turn will enhance the ability of ONGC and OVL to undertake overseas exploration and production (E&P) business.

Stocks of public sector oil marketing companies (PSU OMCs) also edged higher. HPCL (up 0.63%) and Indian Oil Corporation (up 0.14%) gained. BPCL shed 0.04%.

In the global commodities market, Brent crude oil prices edged higher. Brent for February settlement was currently up 35 cents at $36.46 a barrel. The contract had lost 24 cents or 0.66% to settle at $36.11 a barrel during the previous trading session.

Engineering and construction major L&T rose 0.91% after the company's construction segment won orders worth Rs 1178 crore across various businesses in December 2015. Meanwhile, L&T announced after market hours yesterday, 22 December 2015, that its Smart World & Communications business vertical is leading the way to make Jaipur India's first Smart City by creating a host of smart solutions like Wi-Fi hotspots, citizen interactive information kiosks, surveillance cameras, environmental sensors, parking information systems and remote kiosks with facility management services at select locations in the city. L&T has received the mandate from Jaipur Development Authority (JDA), which is leading the initiative to equip Jaipur with world-class digital facilities targeted primarily at the heavy tourist traffic that the city attracts. The Jaipur Smart City project has been planned in two phases with Phase 1 aimed at transforming six major locations into smart zones in the next month and a half and the remaining locations to be completed in a total of 120 days along with an Operations & Maintenance contract for 5 years. In Phase 1, L&T is completing the work at six locations, including the famous Ajmer Fort.

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