Volatility to the fore

Volatility continued in mid-morning trade as key benchmark once again slipped into the red after reversing intraday losses. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 2.94 points or 0.01% at 26,114.60. The 50-unit Nifty 50 index was down 2.70 points or 0.03% at 7,943.65. Data showing that combined index of eight core industries contracted in November weighed on investors' sentiment.

However, the broad market depicted strength. There were more than three gainers against every loser on BSE. 1748 shares rose and 580 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.68%. The BSE Small-Cap index was currently up 0.72%. Both these indices outperformed the Sensex.

Among macro data, the combined index of eight core industries comprising nearly 38% of the weight of items included in the index of industrial production (IIP) fell 1.3% in November 2015 over November 2014. The data was announced after market hours yesterday, 31 December 2015.

In overseas markets, Asian stocks were mixed. US stocks closed lower yesterday, 31 December 2015, with trading lighter than usual ahead of the New Year's Day holiday.

Maruti Suzuki India rose 0.39% after the company said that the total sales rose 8.5% to 1.19 lakh units in December 2015 over December 2014. Domestic sales rose 13.5% to 1.11 lakh units in December 2015 over December 2014. Exports fell 33.1% to 7,816 units in December 2015 over December 2014. The company made the announcement during market hours today, 1 January 2016.

Gail (India) declined 0.64%. The company said that it has entered into a binding Gas Sale and Purchase Agreement (GSPA) with Petronet LNG for supply of an additional 0.3 million metric tonnes per annum (MMTPA) of re-gasified liquefied natural gas (RLNG) with effect from 1 January 2016. Further, GAIL and Petronet LNG on 1 January 2016 have also entered into a agreement to adjust some aspects of their existing long term GSPA of 4.5 MMTPA. The company made the announcement during market hours today, 1 January 2016.

Aviation stocks jumped after jet fuel price was reduced by a steep 9.99% from 1 January 2016. SpiceJet (up 4.58%), Jet Airways (India) (up 4.9%) and InterGlobe Aviation (up 4.19%) edged higher.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 4,428 per kilolitre, or 9.99%, to Rs 39,892.32 per kilo litre with effect from midnight of 31 December 2015 and 1 January 2016. There will be a corresponding price revision in other states with respect to state levies.

ATF constitutes approximately 50% of operating expenses of Indian airlines. State-run oil marketing revise jet fuel prices on the last day of the month based on the average imported oil price in the preceding fortnight.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.83%), Havells India (up 4.59%), ABB India (up 0.17%), L&T (up 0.65%), BEML (up 1.38%), and Siemens (up 0.52%) gained.

Piramal Enterprises rose 1.75% after the company said that a meeting of its committee of directors will be held on 5 January 2016 to consider issue of secured non-convertible debentures amounting upto Rs 500 crore. The announcement was made after market hours yesterday, 31 December 2015.

Powered by Capital Market - Live News