Key indices register modest gains in volatile session

Gains in banking, telecom and pharma stocks and index heavyweights ITC and L&T pulled Key benchmark indices higher on the first trading session of the week. The barometer index, the S&P BSE Sensex rose 149.57 points or 0.58% to settle at 25,760.10. The Nifty 50 index rose 44.35 points or 0.57% to settle at 7,806.60. Trading was volatile. Key indices bounced back from their lowest level in almost 7 weeks after a weak opening.

The Sensex rose 149.57 points or 0.58% to settle at 25,760.10, its highest closing level since 11 November 2015. The index rose 255.89 points or 1% at the day's high of 25,866.42 in mid-afternoon trade. The index fell 159.11 points or 0.62% at the day's low of 25,451.42 in the morning trade, its lowest level since 29 September 2015.

The Nifty rose 44.35 points or 0.57% to settle at 7,806.60, its highest closing level since 11 November 2015. The index rose 76.60 points or 0.98% at the day's high of 7,838.85 in mid-afternoon trade. The index fell 48.10 points or 0.61% at the day's low of 7,714.15 in the morning trade, its lowest level since 29 September 2015.

The BSE Mid-Cap index rose 0.22%. The BSE Small-Cap index rose 0.5%. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,374 shares rose and 1,259 shares fell. A total of 170 shares were unchanged.

The total turnover on BSE amounted to Rs 2544 crore, lower than turnover of Rs 2631.54 crore registered during the previous trading session on Friday, 13 November 2015.

Among the sectoral indices on BSE, the S&P BSE Bankex index (up 1.51%) and BSE Capital Goods index (up 1.07%) outperformed the Sensex. The S&P BSE FMCG index (up 0.5%), BSE Healthcare index (up 0.49%), BSE IT index (down 0.97%), BSE Auto index (up 0.25%), BSE Consumer Durables index (down 0.06%), BSE Metal index (up 0.23%), BSE Oil & Gas index (up 0.43%), BSE Power index (up 0.4%), BSE Realty index (down 0.02%) and BSE Teck index (down 0.88%) underperformed the Sensex.

Index heavyweight and cigarette major ITC rose 2.69% at Rs 338.30. The stock hit a high of Rs 339.05 and a low of Rs 329.80 in intraday trade.

Another index heavyweight and construction equipment major L&T rose 1.9% at Rs 1,357.20. The stock hit a high of Rs 1,363 and a low of Rs 1,325.55 in intraday trade.

Bank stocks were in demand. Among public sector banks, Syndicate Bank (up 3.55%), Union Bank of India (up 3.24%), State Bank of India (up 3.23%), Punjab National Bank (up 2.52%), IDBI Bank (up 2.44%), Canara Bank (up 2.03%), Bank of Baroda (up 1.58%) and Corporation Bank (up 0.6%) edged higher. United Bank of India (down 0.23%) edged lower.

Among private sector banks, IndusInd Bank (up 2.17%), ICICI Bank (up 2.1%), Yes Bank (up 1.82%), Kotak Mahindra Bank (up 1.5%) and HDFC Bank (up 0.66%) edged higher. Axis Bank (down 0.51%) edged lower.

Telecom stocks advanced. Mahanagar Telephone Nigam (up 6.84%), Tata Teleservices (Maharashtra) (up 1.83%), Reliance Communications (up 1.36%), Bharti Airtel (up 0.55%) and Idea Cellular (up 0.42%) edged higher.

Pharma stocks rose. Dr Reddy's Laboratories (up 3.43%), Glenmark Pharmaceuticals (up 3.01%), Strides Arcolab (up 2.38%), Lupin (up 1.72%), Cipla (up 1.23%), Ipca Laboratories (up 0.61%) and Wockhardt (up 0.17%) edged higher. Divi's Laboratories (down 1.44%), GlaxoSmithkline Pharmaceuticals (down 1.03%) and Sun Pharmaceutical Industries (down 0.2%) edged lower.

Shares of public sector oil marketing companies (PSU OMCs) declined. BPCL (down 0.8%) and Indian Oil Corporation (down 1.31%) edged lower. HPCL (up 1.6%) edged higher.

PSU OMCs have raised the price of petrol by 36 paise a litre and diesel by 87 paise a litre following their fortnightly review to align local prices with international ones and adjust for foreign exchange rates. The prices will be effective from today, 16 November 2015.

Meanwhile, Brent for January settlement was currently up 34 cents at $44.81 a barrel. The contract had fallen 72 cents or 1.59% to settle at $44.47 a barrel during the previous trading session.

Coal India fell 1.94% at Rs 331.10. The stock hit a high of Rs 336.55 and a low of Rs 326.95 in intraday trade. The company's consolidated net profit rose 16.02% to Rs 2543.80 crore on 6.89% rise in total income to Rs 18921.23 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 13 November 2015.

Tata Power declined 1.54% at Rs 67.25. The stock hit a high of Rs 68.60 and a low of Rs 66.70 in intraday trade. The company announced during market hours today, 16 November 2015 that its consolidated power generation rose 6.5% to 11,663 million units in Q2 September 2015 over Q2 September 2014. Together with all its subsidiaries, the company achieved generation sales of 11,376 million units of power from all its power plants during Q2 September 2015, Tata Power said.

DLF fell 0.23% to Rs 110. The stock hit a high of Rs 111 and a low of Rs 108.20 in intraday trade. The company said before market hours today, 16 November 2015, that the Competition Commission of India (CCI) vide its letter dated 12 November 015 has communicated that CCI in its meeting held in 10 November 2015 considered and approved the proposed combination of DLF Home Developers (DHDL), a wholly-owned subsidiary of DLF and GIC, Singapore's sovereign wealth fund (GIC) to enter into a joint venture to invest in two upcoming projects located in Central Delhi. The detailed order of the commission in this regard is awaited. Pursuant to receipt of this approval, both parties are initiating the necessary steps to successful closing of this transaction.

DHDL, a wholly-owned subsidiary of DLF and GIC, Singapore's sovereign wealth fund (GIC) have signed an agreement to enter into a joint venture to invest in two upcoming projects located in Central Delhi. GIC will invest a sum of approximately Rs 1990 crore in the projects, subject to meeting all statutory requirements and conditions precedents which are customary, prior to the closing.

MMTC jumped 7.58% to Rs 45.40 after the company reported net profit of Rs 43.84 crore in Q2 September 2015 as compared with net loss of Rs 10.08 crore in Q2 September 2014. MMTC's total income jumped 95.5% to Rs 4981.31 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 13 November 2015.

GMR Infrastructure advanced 13.13% at Rs 13.44 after the company reported consolidated net loss of Rs 398.67 crore in Q2 September 2015, lower than net loss of Rs 609.86 crore in Q2 September 2014. Total income rose 14.4% to Rs 3184.11 crore in Q2 September 2015 over Q2 September 2014. The result was announced on Saturday, 14 November 2015.

The Sensex has declined 896.73 points or 3.36% in this month so far (till 16 November 2015). The Sensex has fallen 1,739.32 points or 6.32% in this calendar year so far (till 16 November 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 926.56 points or 3.73%. The Sensex is off 4,264.64 points or 14.2% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, latest data released by the government showed that the annual rate of inflation, based on monthly wholesale price index (WPI) stood at minus 3.81% for the month of October 2015 as compared to minus 4.54% for the previous month and 1.66% during the corresponding month of the previous year.

In overseas stock markets. European stocks reversed initial losses. Asian markets declined after terror attacks in Paris unnerved investors and data showed Japan entered a recession for the second time in two years. Selling hit Wall Street for a third straight day on Friday, 13 November 2015, amid a selloff in retail stocks, capping the worst week for the major averages since August.

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