Telecom, cement stocks edge higher

Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 343.54 points or 1.35% at 25,826.06. The Nifty 50 index was up 102.80 points or 1.33% at 7,834.60.

Overseas cues were positive. Asian stocks edged higher after the US Federal Reserve's meeting minutes sent strong signals of a rate increase in December, a vote of confidence in the health of the world's largest economy and a boon for the banking sector. US stocks rallied yesterday, 18 November 2015, after minutes from last month's Federal Reserve meeting showed most officials anticipated economic conditions could be strong enough for a December interest-rate increase. The Fed has kept its benchmark for short-term rates near zero since late 2008.

Closer home, the market breadth indicating the overall health of the market was strong. There were more than two gainers against every loser on BSE. 1,673 shares rose and 796 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index was currently up 1.06%. The BSE Small-Cap index was up 1.11%. Both these indices underperformed the Sensex.

Cement stocks rose. ACC (up 0.08%) and UltraTech Cement (up 0.69%) edged higher. Shree Cement (down 1.03%) edged lower.

Shares of Ambuja Cements were unchanged at Rs 197.40.

Grasim Industries was up 0.89%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom stocks gained. Tata Teleservices (Maharashtra) (up 0.6%), Bharti Airtel (up 0.7%) and Reliance Communications (up 1.08%) edged higher. Idea Cellular (down 1.34%) and Mahanagar Telephone Nigam (down 0.79%) edged lower.

Dr Reddy's Laboratories dropped 2.53% at Rs 3,290 after reports that Los Angeles-based law firm Lundin Law has filed a class action law suit, alleging that the company possibly violated federal securities laws. The investigation reportedly is related to allegations that certain statements issued by Dr Reddy's Laboratories were false and misleading concerning its financial performance. Meanwhile, Dr Reddy's Lab during market hours today, 19 November 2015, clarified that the company has always adhered to all disclosure requirements both of the Securities and Exchange Commission (SECs) and Indian stock exchanges including accounting practices as per the Indian Financial Reporting Standards (IFRS) and the Indian Accounting Standards.

IOL Chemicals & Pharmaceuticals jumped 15.29% at Rs 98.05 after the company announced completion of de-bottlenecking project for its Ibuprofen manufacturing facilities at Barnala. The company made announcement during market hours today, 19 November 2015.

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