Market gains in early trade

Key benchmark indices edged higher in early trade tracking firmness in Asian stocks. At 9:28 IST, the barometer index, the S&P BSE Sensex, was up 166.14 points or 0.68% at 24,601.80. The Nifty 50 index was up 45.90 points or 0.62% at 7,468.35. Metal, capital goods and realty stocks led gains on the bourses.

The broad market depicted strength. There were more than six gainers against every loser on BSE. 1,210 shares gained and 177 shares fell. A total of 40 shares were unchanged. The BSE Mid-Cap index was currently up 0.86%. The BSE Small-Cap index was currently up 1.18%. Both these indices outperformed the Sensex.

In overseas markets, Asian shares gained as the blizzard on the US East coast pushed oil prices higher, relieving some of the bearish pressure on Wall Street and world markets. US stocks rose on Friday, 22 January 2016 helped by a recovery in oil from multiyear lows and hopes of stimulus overseas. Meanwhile, the Federal Open Market Committee (FOMC) is widely expected to keep US interest rates unchanged after the conclusion of a two-day monetary policy meeting on 26-27 January 2016.

HDFC Bank rose 0.75% ahead of its Q3 results today, 25 January 2016.

Index heavyweight and cigarette major ITC dropped 0.66% after the company reported small growth in profitability in Q3 results. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016.

Cairn India rose 3.45%. The company's consolidated net profit fell 99.35% to Rs 8.69 crore on 44.53% drop in total income to Rs 2230.19 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours on Friday, 22 January 2016.

Cipla gained 0.79%. The company announced after market hour on Friday, 22 January 2016, that it ceases to hold any stake in Biomab Holding Limited, Hong Kong (Biomab) after the company on 22 January 2016 completed the transfer formalities in relation to the divestment of its entire 25% stake held in Biomab.

UltraTech Cement rose 0.66%. The company announced after market hours on Friday, 22 January 2016, that the Supreme Court of India has allowed an appeal filed by the State of Rajasthan in a matter relating to transfer of mining lease in the name of the company's wholly-owned subsidiary viz. Gotan Lime Stone Khanij Udyog Private Limited (GKUPL). Supreme Court has directed the State of Rajasthan to frame and notify its policy relating to transfer of mining lease within one month of receipt of the order and thereafter pass appropriate order in respect of the mining lease of GKUPL. Till such a decision is taken, status quo may be maintained. The supply from these mines was in addition to its supply from existing mines and other sources. The company's day to day operations will not be impacted.

Tata Power Company gained 0.97%. The company announced after market hours on Friday, 22 January 2016, that its 100% subsidiary, Tata Power Renewable Energy (TPREL), issued and allotted guaranteed, unsecured, non-cumulative, redeemable, taxable, listed, rated, non-convertible debentures (NCDs) for an amount of Rs 425 crore on private placement basis. The NCDs have been rated AA (SO) by CARE. The NCDs will carry a spread of 0.13% above base rate of State Bank of India (fully floating) payable annually and are guaranteed by the company. The proceeds from the NCDs will be primarily used to prepay existing higher cost debt in TPREL. These NCDs have been issued on a private placement basis through a private placement offer letter cum information memorandum.

In a separate announcement on Friday, 22 January 2016, Tata Power announced termination of a share purchase agreement (SPA) with Ideal Energy Projects (IEPL) for acquisition of 100% stake in a 270 megawatts (MW) coal based thermal power project in Maharashtra, extendable to 540 MW. An agreement was reached earlier between Tata Power and IEPL for sale of 100% stake in IEPL in December 2014. As per the terms of SPA, the acquisition was subject to fulfillment of certain conditions precedent. The company made all efforts to arrive at a workable solution to salvage a stressed asset along with key stakeholders. However, the stakeholders could not conclude, leading to non-fulfillment of the aforesaid conditions precedent. In view of the above, the company has decided not to pursue this opportunity any further and confirm the termination of the SPA.

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