Metal and mining stocks gain as copper prices rise

After extending gains in morning trade, key benchmark indices trimmed gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 71.12 points or 0.32% at 24,756.65. The 50-unit Nifty 50 index was up 29.60 points or 0.39% at 7,542.15. Gains in global stocks supported the upmove on the domestic bourses.

Asian stocks edged higher on stronger currencies relative to the US dollar. A broad based weakness in the dollar aided gains in Asian currencies on the heels of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US.

The market breadth indicating the overall health of the market was positive. On BSE, 1,126 shares rose and 973 shares fell. A total of 120 shares were unchanged. The BSE Mid-Cap index was currently up 0.04%. The BSE Small-Cap index was currently up 0.22%. Both these indices underperformed the Sensex.

In overseas stocks markets, Chinese stocks led gains in Asian markets after Chinese authorities guided the yuan stronger against the dollar. In mainland China, the Shanghai Composite was currently up 2.07%. In Hong Kong, the Hang Seng index was currently up 0.67%. US stocks edged higher yesterday, 17 March 2016, as energy, materials and industrials sectors rose sharply, helped by soaring commodity prices.

ICICI Bank edged higher after the bank said it is evaluating issuance of long term bonds in the nature of debentures on a private placement basis for lending to long term projects in infrastructure and affordable housing on a private placement basis. The stock was up 0.64%. The borrowing proposal will be considered in the meeting of Committee of Executive Directors at any time in next week starting from 21 March 2016, ICICI Bank said. The announcement was made after market hours yesterday, 17 March 2016.

Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 0.72%), Hindustan Copper (up 1.8%), Vedanta (up 4.23%), Hindalco Industries (up 3.58%), Hindustan Zinc (up 2.01%), Jindal Steel & Power (up 2.21%), Tata Steel (up 1.62%), Steel Authority of India (Sail) (up 1.29%), National Aluminum Company (up 0.38%) and NMDC (up 1.9%) gained. Bhushan Steel fell 1.61%.

High Grade Copper for May 2016 delivery was currently up 1.03% at $2.316 per pound on the COMEX.

Telecom stocks gained. Bharti Airtel (up 0.22%), Tata Teleservices (Maharashtra) (up 0.8%), Reliance Communications (up 1.97%) and Idea Cellular (up 1.64%) gained.

MOIL rose 5.08% after the state government of Madhya Pradesh granted mining lease of over 48.974 hectare in village Lugma, Tehsil Paraswada of Balaghat District in Madhya Pradesh in favour of the company. The lease has been executed and registered by the company, MOIL said. This area falls under Ukwa mine of the company. The announcement was made after trading hours yesterday, 17 March 2016.

Dhanuka Agritech rose 4.35% after the company said it has received a licence from the Joint Director of Agriculture (Plant & Protection), Rajasthan to manufacture Insecticides at its unit situated at Keshwana, Kotputli (Jaipur), Rajasthan. The announcement was made after trading hours yesterday, 17 March 2016.

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