Market drifts higher in early trade

Key benchmark indices edged higher in early trade on positive Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 78.13 points or 0.3% at 26,473.84. The Nifty 50 index was currently up 25.55 points or 0.32% at 8,134.40

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 1.52%. In Hong Kong, the Hang Seng index was currently up 0.33%. In Japan, the Nikkei 225 index was currently up 0.72%. 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 market breadth indicating the overall health of the market was strong. On BSE, shares 973 shares gained and 223 shares declined. A total of 69 shares were unchanged. The BSE Mid-Cap index was currently up 0.33%. The BSE Small-Cap index was currently up 0.58%. Both these indices outperformed the Sensex.

Coal India rose 0.06% after 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.

Telecom stocks gained. Idea Cellular (up 1.68%), MTNL (up 0.71%), Tata Teleservices (Maharashtra) (up 2.19%) and Reliance Communications (up 0.63%) rose.

Bharti Airtel gained 1.56% after the company announced after market hours yesterday, 14 June 2016, a new initiative - Open Network - which will display its mobile network coverage and signal strength across India in addition to network site deployment status. The initiative under Project Leap, its national network transformation initiative, sees the company open up its entire mobile network information to its customers through an interactive online interface, said a company statement. The new interface will be available to customers in the website and app from today, 15 June 2016.

Shares of telecom towers maker Bharti Infratel fell 1.43%.

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