Market remains firm

Firmness continued on the bourses, with key benchmark indices trading with substantial gains. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 428.55 points or 1.79% at 24,390.76. The Nifty 50 index was up 134.60 points or 1.85% at 7,411.40. The Sensex hovered above the psychological 24,000 mark after a gap-up opening saw the barometer index regain that mark. Gains in global stocks aided the rally on the domestic bourses. The broad market depicted strength.

The Sensex jumped 438.38 points or 1.82% at the day's high of 24,400.59 in early afternoon trade, its highest level since 19 January 2016. The barometer index rose 157.83 points or 0.65% at the day's low of 24,120.04 in early trade. The Nifty gained 137.75 points or 1.89% at the day's high of 7,414.55 in early afternoon trade, its highest level since 20 January 2016. The index rose 50.80 points or 0.69% at the day's low of 7,327.60 in morning trade.

The broad market depicted strength. There were more than four gainers against every loser on BSE. 1,940 shares gained and 432 shares fell. A total of 129 shares were unchanged. The BSE Mid-Cap index was currently up 1.94%. The BSE Small-Cap index was currently up 2.18%. Both these indices outperformed the Sensex.

In overseas stock markets, Japan and Hong Kong led gains in Asian stocks triggered by hints of more stimulus from European Central Bank (ECB) President Mario Draghi. In Japan, the Nikkei 225 Average closed 5.88% higher. In Hong Kong, the Hang Seng index was currently up 2.4%. US stock index futures pointed at further gains for US stocks. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 105 points at the opening bell today, 22 January 2016. US stocks edged higher yesterday, 21 January 2016, after hints of more stimulus from ECB President Mario Draghi and as oil prices bounced back.

Draghi yesterday, 21 January 2016, signaled at a news conference that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly. The ECB left its key interest rates unchanged after a monetary policy review.

Index heavyweight and housing finance major HDFC advanced 1.75% to Rs 1,154.25. The stock hit high of Rs 1,160.25 and low of Rs 1,135.40 so far during the day.

Auto stocks were in demand on renewed buying. Tata Motors (up 3.83%), Maruti Suzuki India (up 3.4%), Mahindra & Mahindra (M&M) (up 3.35%), Bajaj Auto (up 2%), Hero MotoCorp (up 2.42%), TVS Motor Company (up 2.05%), Eicher Motors (up 5.24%) and Ashok Leyland (up 2.15%) gained.

Telecom stocks were mixed. MTNL (up 2.83%), Tata Teleservices (Maharashtra) (up 0.88%) and Reliance Communications (up 1.13%) rose. Bharti Airtel dropped 4.95%.

Idea Cellular lost 6.41% to Rs 106.60 after announcing weak Q3 result. The stock hit a low of Rs 105.60 so far during the day, which is a 52-week low for the counter. The stock hit a high of Rs 115 so far during the day. The company's consolidated net profit fell 0.37% to Rs 764.21 crore on 10.92% rise in total income to Rs 9040.48 crore in Q3 December 2015 over Q3 December 2014. The net profit was dragged down by sharp fall in other income to Rs 30.79 crore in Q3 December 2015 from Rs 132.62 crore in Q3 December 2014. The EBITDA (earnings before interest, taxation, depreciation and amortization) margin improved 0.4% on year-on-year basis at 34.7% in Q3 December 2015. The result was announced after market hours yesterday, 21 January 2016.

Biocon rose 1.24% after consolidated net profit rose 13.31% to Rs 103 crore on 9.89% growth in total income to Rs 856.10 crore in Q3 December 2015 over Q3 December 2014. Biocon's EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved to 24% in Q3 December 2015 from 22% in Q3 December 2014. The result was announced by the company before market hours today, 22 January 2016.

Commenting on the quarterly performance, Chairperson and Managing Director, Kiran Mazumdar-Shaw stated that Biocon's four most advanced biosimilar and generic insulin programs, Insulin Glargine, Trastuzumab, Pegfilgrastim and Adalimumab, continue to cross critical clinical milestones and are on track for regulatory filings in US & Europe in the year ending 31 March 2016 (FY 2016). These filings are likely to provide an early mover advantage in an addressable $30 billion market, she said.

Reliance Capital gained 3.92% after consolidated net profit rose 10.32% to Rs 235 crore on 10.06% growth in total income to Rs 2318 crore in Q3 December 2015 over Q3 December 2014. The result was announced by the company after market hours yesterday, 21 January 2016.

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