Market trims gains

A bout of volatility was witnessed in morning trade as key benchmark indices trimmed gains after extending initial gains and hitting fresh intraday high. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 109.59 points or 0.43% at 25,874.73. The Nifty 50 index was currently up 37.25 points or 0.47% at 7,966.35. Firmness in Asian stocks supported gains on the bourses. The Sensex was trading below the psychological 26,000 mark after regaining that mark in early trade. The Sensex had settled below that mark in the previous session. The Nifty was currently hovering below the psychological 8,000 mark after regaining that mark in early trade. It had closed below that mark in the previous session.

Key indices had extended gains after starting the day's trade with a gap-up opening. The Sensex rose 51.39 points or 0.19% at the day's low of 25,816.53 in morning trade. The barometer index rose 274.56 points or 1.06% at the day's high of 26,039.70 in early trade. The Nifty rose 17.25 points or 0.21% at the day's low of 7,946.35 in morning trade. The index rose 89.35 points or 1.12% at the day's high of 8,018.45 in early trade.

In overseas stock markets, Asian stocks gained in the wake of solid gains in US markets overnight, while the Japanese yen briefly strengthened after a powerful earthquake rocked northern Japan. A powerful earthquake that rocked northern Japan today, 22 November 2016, appeared to have been taken in stride by investors. The quake generated a tsunami that hit the same northern Pacific coast devastated by a massive quake, tsunami and nuclear disaster in 2011.

US stocks closed higher at fresh record highs yesterday, 21 November 2016, aided by a jump in oil prices and a pullback in the dollar, giving the indices their third simultaneous all-time closing highs this year. Global risk assets, led by US stocks and the dollar, have led gains since Republican Donald Trump's upset election win early this November. Expectations that Trump's administration will usher in expansionary fiscal policies have seen a dramatic selloff in US Treasuries and fueled a surge in the dollar.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,085 shares rose and 909 shares declined. A total of 117 shares were unchanged. The BSE Mid-Cap index was currently up 0.22%. The BSE Small-Cap index was currently up 0.09%. Both these indices underperformed the Sensex.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.24%), Havells India (up 1.3%), ABB India (up 0.5%), Bharat Electronics (up 1.09%), BEML (up 1.08%), Thermax (up 0.45%), and Siemens (up 1.51%) gained.

L&T declined 0.09%. The company announced that its construction division won orders worth Rs 1926 crore across its various business segments. The announcement was made before market hours today, 22 November 2016. L&T announces Q2 results today, 22 November 2016.

Telecom stocks were mixed. Tata Teleservices (Maharashtra) (up 1.84%) and Idea Cellular (up 0.77%) gained. Bharti Airtel (down 0.73%) and Reliance Communications (down 0.41%) declined.

Shares of Bharti Infratel rose 0.77%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Asian Oilfield Services jumped 5.01% after the company said it received two contracts from Oil India worth approximately Rs 140 crore. The announcement was made after market hours yesterday, 21 November 2016. The company said it received letters of award of two contracts from Oil India for acquisition of 2D Seismic Data in unappraised on land areas of North East India for an estimated total value of Rs 140 crore for both the contracts.

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