Broad market depicts strength

Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 234.42 points or 0.89% at 26,600.57. The Nifty 50 index was currently up 66.45 points or 0.82% at 8,170.05. The broad market depicted strength. Positive Asian stocks and steady buying by domestic institutional investors boosted sentiment on the domestic bourses.

Data showed that domestic institutional investors (DIIs) bought shares worth a net Rs 957.83 crore yesterday, 29 December 2016, as per provisional data. The foreign portfolio investors (FPIs) sold shares worth a net Rs 662.29 crore yesterday, 29 December 2016, as per provisional data released by the stock exchanges.

The BSE Mid-Cap index was currently up 1.23%. The BSE Small-Cap index was currently up 1.03%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than three gainers against every loser on BSE. On the BSE, 1,678 shares rose and 526 shares fell. A total of 124 shares were unchanged.

Capital goods stocks edged higher. Bharat Heavy Electricals (Bhel) (up 1.47%), Punj Lloyd (up 1.34%), BEML (up 1.6%), Bharat Electronics (up 1.43%), Crompton Greaves (up 1.46%), L&T (up 0.64%), ABB India (up 0.84%) and Siemens (up 0.66%) rose. Thermax (down 0.25%) fell.

GE Power India jumped 6.21% after the company said it has secured a contract worth about Rs 271.1 crore from Bharat Heavy Electricals (Bhel) to supply components and services for the supercritical steam generator island packages. The announcement was made before market hours today, 30 December 2016.

The first package is for 2x800 megawatts (MW) coal-based Uppur thermal power project (contract value about Rs 162.6 crore) and the second package is for 1x800 MW coal-based North Chennai supercritical thermal power project stage-III (contract value about Rs 108.5 crore). Both the thermal power projects are located in Tamil Nadu. This is in line with the government's focus on upgrading the power infrastructure in the country.

Telecom stocks saw mixed trend. Reliance Communications (up 1.2%), Idea Cellular (up 0.41%) and Tata Teleservices (Maharashtra) (up 0.67%) rose. Bharti Airtel (down 0.66%) and MTNL (down 0.48%) fell.

Shares of Bharti Infratel slipped 0.09%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Engineers India fell 8.34% to Rs 153.35 on profit booking after a recent rally. Shares of Engineers India rose 10.77% in three trading sessions to settle at Rs 334.65 yesterday, 29 December 2016, from its close of Rs 302.10 on 26 December 2016.

Jai Corp rose 1.67% to Rs 73.10 as Morgan Stanley Mauritius Company purchased bulk shares of the company via bulk deal mechanism yesterday, 29 December 2016. Morgan Stanley Mauritius Company purchased 75.56 lakh shares of Jai Corp at Rs 67.25 per share in bulk deals on the BSE on 29 December 2016. Valiant Mauritius Partners sold 34 lakh shares. Valiant Mauritius Partners Offshore liquidated 41.55 lakh shares. Valiant Mauritius Partners held 1.91% and Valiant Mauritius Partners Offshore owned 2.33% stake in Jai Corp as at end 30 September 2016.

Meanwhile, the government will release data for several economic indicators today, 30 December 2016 including fiscal deficit, foreign exchange reserves, foreign debt and trade figures.

Overseas, Asian stocks were trading higher. US stocks closed fractionally lower yesterday, 29 December 2016 as investors remained reluctant to make big bets in a thinly-traded session ahead of long holiday weekend.

On the US data front, jobless claims declined by 10,000 to 265,000 for the week ending 24 December 2016, according to Labor Department report. This marks the 95th straight week that claims were below 300,000, a threshold associated with a healthy labor market.

Meanwhile, US trade deficit grew last month, according to a report released by the Commerce Department on Thursday. The initial estimate, which does not include trade in services, showed that the country exported $1.2 billion less in November than in October. Imports rose by $2.2 billion during the month.

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