PSU OMCs edge higher after hike in diesel price

After a volatile start, key benchmark indices hovered in negative zone in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex was down 29.73 points or 0.11% at 26,980.41. The Sensex was currently trading below the psychological 27,000 level after falling below that level in early trade. The 50-unit CNX Nifty was down 6 points or 0.07% at 8,173.50. The market breadth indicating the overall health of the market was positive. On BSE, 1,053 shares rose and 773 shares fell. A total of 90 shares were unchanged. The BSE Mid-Cap index was up 0.26%. The BSE Small-Cap index was up 0.25%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were mixed. US stocks surged yesterday, 15 October 2015, as financial stocks rallied and mostly soft economic data supported the case for a rate hike delay.

Closer home, data released after market hours yesterday, 15 October 2015 showed that India's merchandise exports continued to decline for tenth straight month at 24.3% to $21.85 billion in September 2015 over a year ago. Meanwhile, merchandise imports also dipped 25.4% to $32.32 billion. The trade deficit narrowed 27.6% to $10.5 billion in September 2015 from $14.47 billion in September 2014.

Shares of public sector oil marketing companies (PSU OMCs) edged higher after announcing hike in diesel price effective 16 October 2015. BPCL (up 1.75%), HPCL (up 1.18%) and Indian Oil Corporation (IOCL) (up 0.53%) gained. IOCL announced increase in the retail selling price of diesel by 95 paise per litre at Delhi (including State levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi stood at Rs 45.90 per litre. IOCL said that the current level of the international prices and rupee-dollar exchange rate warrant a price increase, which is being passed on to consumers with this price revision.

Meanwhile, in the global commodities markets, Brent crude oil futures edged higher. Brent for December settlement was currently up 39 cents at $50.12 a barrel. The contract had risen 4 cents or 0.08% to settle at $49.73 a barrel during the previous trading session.

Shares of oil exploration and production (E&P) firms were mixed. Cairn India (down 0.59%) and ONGC (down 0.71%) edged lower. Oil India (up 0.4%) edged higher.

Index heavyweight Reliance Industries was up 0.55% at Rs 909. The company is scheduled to announce its Q2 September 2015 results today, 16 October 2015.

Metal and mining stocks declined. Steel Authority of India (down 1.31%), Jindal Steel & Power (down 0.07%), National Aluminium Company (down 0.87%), Tata Steel (down 0.72%), Vedanta (down 0.5%) and Hindalco Industries (down 0.28%) edged lower. JSW Steel (up 0.2%), Hindustan Zinc (up 1.45%) and NMDC (up 2.74%) gained.

Shares of state-run coal mining giant Coal India were off 0.95% at Rs 338.55.

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