Market opens higher on positive global cues

Key benchmark indices were trading higher in early trade tracking positive leads from Asian markets and overnight gains on the Wall Street. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 80.19 points or 0.26% at 30,381.83. The Nifty 50 index was up 25.85 points or 0.28% at 9,386.40.

Among secondary barometers,the BSE Mid-Cap index was up 0.21%, underperforming the Sensex. The BSE Small-Cap index was up 0.35%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 983 shares rose and 541 shares fell. A total of 75 shares were unchanged.

Overseas, Asian shares rose after the US Federal Reserve signalled a cautious approach to future rate hikes and the reduction of its $4.5 trillion of bond holdings. Investors also looked ahead to an OPEC gathering widely expected to extend output cuts.

US stocks closed higher for a fifth-straight day yesterday, 24 May 2017, buoyed by the minutes of the Federal Reserve's May meeting. The S&P 500 rose 5.97 points, or 0.3%, to close at 2,404.39. The Dow Jones Industrial Average also rose for a fifth straight day, gaining 74.51 points, or 0.4%, to finish at 21,012.42, just 0.5% below its record close set on 1 March 2017. The Nasdaq Composite Index climbed 24.31 points, or 0.4%, to end at 6,163.02.

Minutes from the Fed's last policy meeting showed policymakers agreed they should hold off on raising interest rates until it was clear a recent US economic slowdown was temporary. The minutes also showed that policymakers favored a gradual reduction in its massive balance sheet. Fed staff proposed that the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially setting it at a low level and raising it every three months.

NHPC was up 0.52%. The company said that its board of directors in its meeting scheduled to be held on 30 May 2017 will consider the proposal for raising of Rs 1756 crore through issuance of 'W' series corporate bonds on private placement basis. The proposed issue is out of Rs 4500 crore already approved by the shareholders in 40th Annual General Meeting held on 22 September 2016. The announcement was made after market hours yesterday, 24 May 2017.

Bharti Airtel was down 1.41%. With respect to media reports titled "Moody's revises Airtel rating outlook to negative from stable," Bharti Airtel clarified that Moody's Investors Service has affirmed its Baa3 issuer rating and senior unsecured debt ratings. Moody's has also affirmed the Baa3 ratings on the senior unsecured notes issued by Bharti Airtel International (Netherlands) B.V., which are irrevocably and unconditionally guaranteed by Bharti Airtel. At the same time, Moody's has changed the outlook on the ratings to negative from stable, Bharti Airtel said. The clarification was made after market hours yesterday, 24 May 2017.

Praj Industries was down 3.02%. The company's consolidated net profit declined 40.75% to Rs 22.78 crore on 10.38% decrease in total income to Rs 315.72 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 May 2017.

Jain Irrigation Systems was up 4.50%. The company's consolidated net profit rose 23.96% to Rs 77.6 crore on 9.58% rise in revenue from operations to Rs 2286.5 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 May 2017.

Kalpataru Power Transmission was down 0.07%. The company said that the executive committee of board of directors of the company approved issuance of listed rated unsecured redeemable taxable non-convertible debentures of Rs 100 crore on private placement basis. The announcement was made after market hours yesterday, 24 May 2017.

Gujarat Gas was down 2.07%. The company's net profit fell 53.77% to Rs 33.14 crore on 1.75% rise in total income to Rs 1444.82 crore in Q4 March 2017 over Q4 March 2016. The announcement was made after market hours yesterday, 24 May 2017.

Indian Overseas Bank was up 0.79%. The bank said that a meeting of committee of directors of the bank will be held on 29 May 2017 to consider and approve the raising of equity capital by way of preferential issue to the Government of India. The announcement was made after market hours yesterday, 24 May 2017.

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