Key benchmark indices hovered in a narrow range in positive terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 97.30 points or 0.38% at 25,862.44. The Nifty 50 index was currently up 36.55 points or 0.46% at 7,965.65. Firmness in Asian stocks supported gains on the bourses. The Sensex was currently trading below the psychological 26,000 mark after regaining that mark in early trade. The Sensex had settled below that mark in the previous session. The Nifty was currently hovering below the psychological 8,000 mark after regaining that mark in early trade. It had closed below that mark in the previous session.
In overseas stock markets, Asian stocks gained in the wake of solid gains in US markets overnight, while the Japanese yen briefly strengthened after a powerful earthquake rocked northern Japan. A powerful earthquake that rocked northern Japan today, 22 November 2016, appeared to have been taken in stride by investors. The quake generated a tsunami that hit the same northern Pacific coast devastated by a massive quake, tsunami and nuclear disaster in 2011.
US stocks closed higher at fresh record highs yesterday, 21 November 2016, aided by a jump in oil prices and a pullback in the dollar, giving the indices their third simultaneous all-time closing highs this year. Global risk assets, led by US stocks and the dollar, have led gains since Republican Donald Trump's upset election win early this November. Expectations that Trump's administration will usher in expansionary fiscal policies have seen a dramatic selloff in US Treasuries and fueled a surge in the dollar.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,151 shares rose and 1,016 shares declined. A total of 139 shares were unchanged. The BSE Mid-Cap index was currently up 0.45%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.13%, underperforming the Sensex.
Cement stocks gained. ACC (up 0.64%), Shree Cement (up 1.16%), Ambuja Cements (up 0.26%), and UltraTech Cement (up 1.39%) gained.
Grasim Industries advanced 1.23%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Realty stocks extended recent steep losses on worries of slowing demand post government's recent move to demonetize higher denomination notes in crackdown on black money as this sector is known to have a high volume of cash transactions, being the preferred route for stowing back money. Indiabulls Real Estate (down 0.01%), Unitech (down 2.58%), Oberoi Realty (down 1.38%), Housing Development & Infrastructure (down 0.01%), DLF (down 1.79%) and Godrej Properties (down 0.51%) dropped.
Sobha lost 4.5% after consolidated net profit fell 1.03% to Rs 38.40 crore on 8.36% increase in total income to Rs 552.20 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 21 November 2016. In Q2 September 2016, Sobha achieved new sales of 8.55 lakh square feet, valued at Rs 551 crore with an average realisation of Rs 6443 per square feet (Sobha's share of sale value stood at Rs 518 crore with an average realisation of Rs 6056 per square feet).
J.C. Sharma, Vice Chairman and Managing Director, Sobha said that the company has seen consistent improvement in cash flow and generated net positive operational cash flow for the past five consecutive quarters.
Suven Life Sciences rose 0.81% after the company said it secured two product patents in China and Mexico. The announcement was made during trading hours today, 22 November 2016. Suven Life Sciences announced the grant of one product patent from China and one product patent from Mexico corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these patents are valid through 2032 and 2031 respectively. The granted claims of the patents are from the mechanism of action include the class of selective H3 inverse agonist compounds and are being developed as therapeutic agents and are useful in the treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer's disease, Attention deficient hyperactivity disorder (ADHD), Huntington's disease, Major Depressive disorder (MDD), Parkinson and Schizophrenia.
Vedanta rose 3.7% ahead of the company's board meeting later today, 22 November 2016, to consider raising Rs 300 crore by issuing rated secured redeemable non-convertible debentures.
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