Higher opening on the cards

Market is set for a higher opening tracking positive global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 99 points at the opening bell.

In overseas stock markets, Asian stocks edged higher tracking overnight gains in US markets. US stocks registered modest gains yesterday, 15 November 2016, as energy shares climbed on the back of rising crude oil prices. Federal Reserve Vice Chair Stanley Fischer reportedly said yesterday, 15 November 2016, that he was surprised by the outcome of the US presidential election. Fischer cautioned it is too early to fully assess market fallout and said market swings following Britain's vote to leave the European Union provided a cautionary example. Fischer reportedly said that US banking rules may be limiting liquidity for some securities but their impact is not unduly hurting markets.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 2353.82 crore yesterday, 15 November 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) offloaded shares worth a net Rs 104.83 crore yesterday, 15 November 2016, as per provisional data.

Among corporate news, HDFC announced after market hours yesterday, 15 November 2016, that it intends to raise Rs 2000 crore from issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.72% per annum and will have a tenor of 10 years.

Wipro and ASG Technologies, a global provider of information access, management and control solutions, announced an expanded partnership that integrates the offerings of Wipro's Data Management Centre of Excellence (CoE) with ASG's Enterprise Data Intelligence solution to improve compliance for the global financial services companies. The announcement was made after market hours yesterday, 15 November 2016.

GAIL (India)'s net profit surged 179.84% to Rs 924.65 crore on 15% decline in total income to Rs 12375.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 15 November 2016.

Net profit was boosted by a turnaround in its petrochemical business and reduction in interest costs. The company's profit before tax (PBT) surged 151% to Rs 1375 crore in Q2 September 2016 over Q2 September 2015.

The company's net profit rose 9% to Rs 924.65 crore in Q2 September 2016 over Q1 June 2016 (excluding the gains from stake sale in Mahanagar Gas), largely on account of better performance in natural gas transmission and petrochemical segment.

During the quarter, GAIL's petrochemical business has seen a turnaround with sales jumping 61% on year-on-year basis. This has resulted in increase in revenue in this segment by 53% to Rs 1358 crore and the profit stood at Rs 104 crore in Q2 September 2016 as against loss of Rs 364 crore in Q2 September 2015.

The increase in net profit during Q2 September 2016 on year on year basis, was also supported by increase in natural gas marketing & transmission volumes by 8% and 12% respectively and liquid hydrocarbon sales by 9%.

Shares of public sector oil marketing companies (PSU OMCs) will be in focus after announcing a cut in petrol and diesel prices. Indian Oil Corporation (IOCL) yesterday, 15 November 2016, announced a decrease in the price of petrol and diesel with effect from the midnight of 15/16 November 2016. Petrol price was decreased by Rs 1.46 per litre and diesel price was cut by Rs 1.53 a litre (excluding state levies).

On the macro front, the data released by the government after market hours yesterday, 15 November 2016 showed that the all-India general CPI inflation dipped to 4.2% in October 2016 compared with 4.39% in September 2016. The core CPI inflation was nearly flat 4.81% in October 2016 from 4.77% in September 2016.

Key benchmark indices settled with heavy losses yesterday, 15 November 2016, extending the sharp sell off witnessed in the previous session. The Sensex had fallen 514.19 points or 1.92% to settle at 26,304.63, its lowest closing level since 23 May 2016.

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