Shares hold firm at higher level on strong European signals

Key benchmark indices continued to trade on a firm note after European shares opened higher. At 14:16 IST, the barometer index, the S&P BSE Sensex, was up 396.27 points or 1.45% at 27,648.80. The Nifty 50 index was up 135.40 points or 1.61% at 8,567.40. Strong global cues boosted investors' sentiment.

In overseas stock markets, European shares advanced in early trade today, 10 November 2016, led higher by miners and banks, with encouraging results from companies such as Vivendi supporting the broader market. Asian stocks edged higher to join a global rebound on speculation Donald Trump will pursue business-friendly policies. Japan's Nikkei 225 ended 6.72% higher. According to reports, investors were focusing on Trump's key policy priorities including generous tax cuts and higher infrastructure and defence spending, along with deregulation for banks.

US stocks rallied Wednesday, 9 November 2016, led by a surge in financial, health-care and industrial stocks, as investors bet on the infrastructure spending policy promised by President-elect Donald Trump. Trump was declared as the 45th President of the United States yesterday, 9 November 2016.

Back home, the broad market depicted strength. There were more than three gainers against every loser on BSE. 2,060 shares rose and 572 shares fell. A total of 135 shares were unchanged. The BSE Mid-Cap index was currently up 2.16%. The BSE Small-Cap index was currently up 2.10%. Both these indices outperformed the Sensex.

Capital goods shares edged higher. Punj Lloyd (up 3.47%), Reliance Defence and Engineering (up 3.46%), Havells India (up 2.78%), Lakshmi Machine Works (up 2.12%), SKF India (up 2.08%), GE T&D India (up 2.01%), BEML (up 1.99%), Jindal Saw (up 1.93%), Thermax (up 1.91%), Praj Industries (up 1.80%), Siemens (up 1.80%), GE Power India (up 1.31%), Bharat Heavy Electricals (up 1.15%), Suzlon Energy (up 1.05%), Bharat Electronics (up 0.91%), ABB India (up 0.46%) and Crompton Greaves (up 0.30%), edged higher. AIA Engineering was down 0.56%.

Auto shares were mixed. TVS Motor Company (up 1.50%), Tata Motors (up 1.36%), Maruti Suzuki India (up 0.30%) and Mahindra & Mahindra (up 0.29%), edged higher. Eicher Motors (down 0.02%), Bajaj Auto (down 0.16%), Ashok Leyland (down 0.77%) and Hero MotoCorp (down 1.49%), edged lower.

Eicher Motors was down 0.41% to Rs 23,312.05 on reports that a foreign brokerage has upgraded the stock to buy from neutral earlier with increased target price of Rs 28,000.

Bodal Chemicals fell 1.18% to Rs 138.30. The company's net profit rose 45.56% to Rs 34.04 crore on 30.25% rise in net total income from operations to Rs 357.35 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 10 November 2016.

On the macro front, the figures for direct tax collections up to October 2016 show that net collections are at Rs 3.77 lakh crore which is 10.6% more than the net collections for the corresponding period last year. Till October 2016, 44.5% of the Budget estimates of direct taxes for financial year 2016-17 has been achieved.

The figures for indirect tax collections (Central Excise, Service Tax and Customs) up to October 2016 show that net revenue collections are at Rs 4.85 lakh crore which is 26.7% more than the net collections for the corresponding period last year. Till October 2016, 62.4% of the Budget estimates of indirect taxes for financial year 2016-17 has been achieved.

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