A bout of volatility was witnessed as key benchmark indices pared gains after extending initial gains triggered by firm Asian stocks. At 10:17 IST, the barometer index, the S&P BSE Sensex, was up 178.49 points or 0.73% at 24,614.15. The 50-unit Nifty 50 index was currently up 51.50 points or 0.69% at 7,473.95. The Sensex hit its highest level in more than a week when it jumped 214.91 points or 0.87% at the day's high of 24,650.57 in early trade. The barometer index rose 85.93 points or 0.35% at the day's low of 24,521.59 in early trade. The Nifty also hit its highest level in more than a week when it rose 64.70 points or 0.87% at the day's high of 7,487.15 in early trade. The index rose 25.40 points or 0.34% at the day's low of 7,447.85 in early trade.
The broad market depicted strength. There were almost five gainers against every loser on BSE. 1,658 shares gained and 332 shares fell. A total of 76 shares were unchanged. The BSE Mid-Cap index was currently up 1%. The BSE Small-Cap index was currently up 1.56%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian shares edged higher on speculation that the Japan's central bank will introduce new monetary stimulus at its meeting later this week, on 28-29 January 2016. US stocks rose on Friday, 22 January 2016, as oil futures surged and investors were encouraged by hints of potential central-bank stimulus in Europe and Japan after a tough week for global markets. At a news conference after the conclusion of European Central Bank's (ECB) regular policy review, ECB President Mario Draghi signalled last week that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly.
Capital goods stocks gained. Havells India (up 1.73%), ABB India (up 0.78%), Bharat Electronics (up 1.74%), L&T (up 0.96%), BEML (up 2.74%) and Siemens (up 1.72%) gained.
Bharat Heavy Electricals (Bhel) rose 2.24% after reports the government has asked four leading public sector companies, including Bhel to consider buyback of shares. The government is falling short in meeting its divestment target for the current fiscal year which is the reason why it has asked four leading public sector companies to consider buyback of shares, according to reports. The government currently holds 63.06% in Bhel (as per shareholding pattern as on 31 December 2015).
Realty stocks rose. DLF (up 0.9%), Sobha (up 1.14%), Indiabulls Real Estate (up 2.43%), Unitech (up 1.76%), Housing Development & Infrastructure (HDIL) (up 1.04%), Oberoi Realty (up 0.95%), and Phoenix Mills (up 0.25%) edged higher.
Godrej Properties rose 1.08% after the company announced a partnership with Lotus Greens to develop a 4 million square feet residential project in Noida. The announcement was made during trading hours today, 25 January 2016.
Index heavyweight and cigarette major ITC edged higher in volatile trade after announcing its third quarter results. The stock was currently up 0.44% at Rs 310. The stock hit high of Rs 311.80 and low of Rs 304.25 so far during the day. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016.
ITC said that its performance in Q3 December 2015 remained subdued, reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry. The performance of the company's cigarettes business remained muted in Q3 December 2015 due to taxation and regulatory headwinds facing the legal cigarette industry in India. The company added that it continues to engage with the concerned authorities, both at the central government and state level, highlighting the need for moderation in tax rates on cigarettes to maximise the revenue potential from the tobacco sector, arrest the growth of the illegal cigarette segment and protect the interest of the Indian tobacco farmer.
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