Capital goods, power generation stocks gain

Key benchmark indices hovered in positive zone in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex was up 109.85 points or 0.42% at 26,505.56. The Nifty 50 index was currently up 28.45 points or 0.35% at 8,137.30. Positive Asian stocks boosted sentiment on domestic bourses.

The Sensex rose 136.19 points or 0.52% at the day's high of 26,531.90 at onset of the day's trading session, its highest level since 10 June 2016. The index rose 50.88 points or 0.19% at the day's low of 26,446.59 in early trade. The Nifty gained 38.75 points or 0.18% at the day's high of 8,147.60 at onset of the day's trading session, its highest level since 10 June 2016. The index rose 14.30 points or 0.18% at the day's high of 8,123.15 in early trade.

In overseas markets, Chinese mainland markets rose, shrugging off a decision by stock index provider MSCI saying yesterday, 14 June 2016 to delay inclusion of mainland-traded Chinese A shares in its key emerging market index. In mainland China, the Shanghai Composite index was currently up 1.53%. In Hong Kong, the Hang Seng index was currently up 0.46%. In Japan, the Nikkei 225 index was currently up 0.37%. Most other Asian stocks were trading higher as investors awaited outcome of the central bank meetings in the US and Japan. The US Federal Open Market Committee concludes its two-day meeting today, 15 June 2016 while the Bank of Japan will start its two-day meeting today, 15 June 2016. US stocks declined yesterday, 14 June 2016 as investors grappled with mixed signals from lower oil prices, stronger-than-expected retail sales and geopolitical uncertainty roiling European markets.

Closer home, the broad market depicted strength. There were more than two gainers for every loser on BSE. 1,386 shares gained and 510 shares declined. A total of 113 shares were unchanged. The BSE Mid-Cap index was currently up 0.53%. The BSE Small-Cap index was currently up 0.74%. Both these indices outperformed the Sensex.

Capital goods stocks edged higher. ABB India (up 1.73%), Bharat Heavy Electricals (Bhel) (up 0.91%), Bharat Electronics (up 1.55%), Crompton Greaves (up 1.59%), L&T (up 1.33%), Siemens (up 0.06%), and Thermax (up 0.21%) gained. BEML fell 0.76%.

Power generation stocks rose. Tata Power Company (up 0.53%), CESC (up 1.93%), NTPC (up 1.15%), Torrent Power (up 1.48%), Jaiprakash Power Ventures (up 4.37%), Adani Power (up 0.06%), JSW Energy (up 4.36%) edged lower.

Reliance Infrastructure (down 1.19%), Reliance Power (down 0.19%) and NHPC (down 0.4%) fell.

Coal India fell 0.7%%. The company announced after market hours yesterday, 14 June 2016, that the board of directors of its subsidiary, South Eastern Coalfields (SECL), approved the buyback of 8.46 lakh fully paid equity shares of face value of Rs 1000 each from the members of the company on a proportionate basis through tender offer representing 23.53% of the total number of equity shares in the paid-up share capital of the company. The shares will be bought back for an aggregate amount not exceeding Rs 1200.19 crore with maximum buyback size being upto 25% of the paid-up equity share capital and free reserves as on financial year ended 31 March 2016, at a buyback price of Rs 14,180.57 per share payable in cash.

Shares of two stocks saw mixed trend after addition in the National Stock Exchange's futures and options segment. Sintex Industries surged 6.35%. NIIT Technologies shed 0.17%. The National Stock Exchange (NSE) after market hours yesterday, 14 June 2016 announced that the futures and options (F&O) contracts on NIIT Technologies and Sintex Industries will be available for trading from 1 July 2016. The market lot, scheme of strikes and quantity freeze limit of the securities shall be informed to members on 30 June 2016 through a separate circular.

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