Strong market breadth

After hovering near the flat line in mid-morning trade, key benchmark indices moved higher in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 109.41 points or 0.45% at 24,595.36. The 50-unit Nifty 50 index was currently up 33.80 points or 0.45% at 7,469.95. In overseas stock markets, Asian stocks extended gains and Chinese stocks staged an intraday rebound, which in turn aided the upmove for Indian stocks.

The Sensex rose 159.75 points or 0.65% at the day's high of 24,645.70 in early trade. The barometer index fell 21.62 points or 0.08% at the day's low of 24,464.33 in morning trade. The Nifty rose 39.90 points or 0.53% at the day's high of 7,476.05 in early trade. The index shed 16.45 points or 0.22% at the day's low of 7,419.70 in morning trade, its lowest level since 22 January 2016.

The market breadth indicating the overall health of the market was strong. On BSE, 1,410 shares gained and 865 shares fell. A total of 143 shares were unchanged. The BSE Mid-Cap index was currently up 0.52%. The BSE Small-Cap index was currently up 0.53%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks edged higher after better-than-expected corporate earnings triggered rally in US stocks overnight. In mainland China, the Shanghai Composite index staged a strong intraday rebound. The index was currently off 0.79%. US stocks ended sharply higher yesterday, 26 January 2016, as energy stocks soared amid a rebound in oil prices.

Meanwhile, the Federal Open Market Committee (FOMC) is widely expected to keep US interest rates unchanged after the conclusion of a two-day monetary policy meeting today, 27 January 2016. Investors are awaiting the Fed's policy statement for the US central bank's comments on global risk factors such as falling oil prices and economic slowdown in China.

Shares of power generation and power distribution companies gained. Torrent Power (up 4.58%), NHPC (up 1.8%), Tata Power Company (up 0.41%), Adani Power (up 1.42%), NTPC (up 2.87%), Reliance Infrastructure (up 0.87%) and Reliance Power (up 0.9%) gained.

Power Grid Corporation of India rose 3.53% ahead of its Q3 results today, 27 January 2016.

Coal India dropped 1.46% to Rs 300.05. The stock hit high of Rs 307 and low of Rs 298.15 in intraday trade.

Auto stocks were mixed. Eicher Motors (down 0.8%), Hero MotoCorp (down 0.61%) and Bajaj Auto (down 0.79%) declined. Mahindra & Mahindra (M&M) (up 0.35%), Ashok Leyland (up 1.33%) and TVS Motor Company (up 1.06%) gained.

Maruti Suzuki India rose 1.13% after media reports that the company's Japanese parent Suzuki Motor Corporation is considering a wide-ranging partnership with Toyota Motor Corporation. According to reports, Toyota Motor Corporation and Suzuki Motor Corporation are considering a wide-ranging partnership to meet growing demand for compact cars in emerging markets such as India. Media reports suggested that Suzuki and Toyota are discussing a possible partnership from a variety of angles, including a cross-shareholding deal. However, a separate media report said that Toyota Motor Corp and Suzuki Motor Corp have, both, denied the reports of talks for a potential partnership.

Maruti is scheduled to announce its Q3 December 2015 results tomorrow, 28 January 2016.

Housing finance major HDFC gained 0.55% ahead of its Q3 results today, 27 January 2016. The company during market hours today, 27 January 2016, announced that it will raise Rs 450 crore from an issue of secured, redeemable non convertible debentures to on private placement basis. The issue will open for subscription tomorrow, 28 January 2016, and closes on the same day. The debentures carry a coupon of 8.6% per annum, with tenor of 3 years and 1 month. The object of the issue is to augment the long term resources of the company.

Hinduja Foundries rose 1.05% after the company said its board of directors approved a proposal to issue Global depository receipts (GDRs) to promoters, promoter group, group companies and any other entity, which is a subsidiary, associate of its parent, group companies or any other entity eligible to invest in GDR for an amount up to Rs 400 crore. The announcement was made after market hours on Monday, 25 January 2016.

Indosolar was locked at 5% lower circuit at Rs 10.16 after the company reported net loss of Rs 38.30 crore in Q3 December 2015, higher than net loss of Rs 10.52 crore in Q3 December 2014. The result was announced after market hours on Monday, 25 January 2016. Indosolar's total income from operations (net) declined 23.71% to Rs 79.60 crore in Q3 December 2015 over Q3 December 2014.

Meanwhile, as per the outcome of the joint lenders meeting, the lenders to the company are not considering a second restructuring proposal for the company as of now and are exploring the possibility of sale to asset restructuring company (ARC) and/or to invoke change in management.

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