Market opens on a firm note on positive Asian stocks

Key benchmark indices opened on a firm note on positive Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 195.63 points or 0.74% at 26,721.09. The Nifty 50 index was currently up 44.15 points or 0.54% at 8,184.90.

In overseas markets, Asian stocks were trading higher ahead of the UK's upcoming 23 June 2016 referendum vote on its future within the European Union. US stocks closed modestly higher yesterday, 16 June 2016 ending a five-day streak of losses with telecoms leading sector advancers. Meanwhile, the Bank of England yesterday, 16 June 2016 kept its key interest rate at a record low of 0.5% and made no changes to its 375-billion-pound ($530 billion) asset-purchase program. All nine rate-setting policy makers voted to hold rate unchanged. The decision marked the last before the 23 June 2016 referendum in the UK on whether the country should stay or exit the European Union (EU). A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy, the BOE said in a statement. The interest rate decision was announced after close of Indian market hours yesterday, 16 June 2016.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, shares 1,023 shares advanced and 246 shares declined. A total of 59 shares were unchanged. The BSE Mid-Cap index was currently up 0.59%. The BSE Small-Cap index was currently up 0.72%. Both these indices underperformed the Sensex.

HDFC (up 1.73%), Maruti Suzuki India (up 1.49%) and Axis Bank (up 1.39%) edged higher from the Sensex pack.

Realty stocks gained. DLF (up 1.64%), Indiabulls Real Estate (up 2.52%), Housing Development and Infrastructure (up 1.62%), D B Realty (up 2.15%), Unitech (up 2.45%), Sobha (up 1.27%), Godrej Properties (up 0.9%) and Oberoi Realty (up 0.86%) rose.

On the macro front, India's current account deficit (CAD) narrowed sharply to $0.3 billion (0.1% of GDP) in Q4 of 2015-16, significantly lower than $7.1 billion (1.3% of GDP) in Q3 of 2015-16 and marginally lower than $0.7 billion (0.1% of GDP) in Q4 of 2014-15. The contraction in CAD was primarily on account of a lower trade deficit ($24.8 billion) than in Q4 of last year ($31.6 billion) and $34 billion in the preceding quarter. The government announced the economic data after market hours yesterday, 16 June 2016.

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