Key benchmark indices edged higher in early trade tracking positive global cues. At 9:18 IST, the barometer index, the S&P BSE Sensex was up 237.99 points or 0.9% at 26,542.62. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty was currently up 98.40 points or 1.21% at 8,206.85.
Meanwhile, the data released by the government after market hours yesterday, 15 November 2016 showed that the all-India general CPI inflation dipped to 4.2% in October 2016 compared with 4.39% in September 2016. The core CPI inflation was nearly flat 4.81% in October 2016 from 4.77% in September 2016.
In overseas stock markets, Asian stocks edged higher tracking overnight gains in US markets. US stocks registered modest gains yesterday, 15 November 2016, as energy shares climbed on the back of rising crude oil prices. Federal Reserve Vice Chair Stanley Fischer reportedly said yesterday, 15 November 2016, that he was surprised by the outcome of the US presidential election. Fischer cautioned it is too early to fully assess market fallout and said market swings following Britain's vote to leave the European Union provided a cautionary example. Fischer reportedly said that US banking rules may be limiting liquidity for some securities but their impact is not unduly hurting markets.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,075 shares rose and 201 shares declined. A total of 44 shares were unchanged. The BSE Mid-Cap index was currently up 1.1%. The BSE Small-Cap index was currently up 1.43%. Both these indices outperformed the Sensex.
HDFC was up 0.19%. The company announced after market hours yesterday, 15 November 2016, that it intends to raise Rs 2000 crore from issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.72% per annum and will have a tenor of 10 years.
Wipro was up 1.26% after the company and ASG Technologies, a global provider of information access, management and control solutions, announced an expanded partnership that integrates the offerings of Wipro's Data Management Centre of Excellence (CoE) with ASG's Enterprise Data Intelligence solution to improve compliance for the global financial services companies. The announcement was made after market hours yesterday, 15 November 2016.
GAIL (India) rose 0.7% after net profit surged 179.84% to Rs 924.65 crore on 15% decline in total income to Rs 12375.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 15 November 2016.
Net profit was boosted by a turnaround in its petrochemical business and reduction in interest costs. The company's profit before tax (PBT) surged 151% to Rs 1375 crore in Q2 September 2016 over Q2 September 2015.
The company's net profit rose 9% to Rs 924.65 crore in Q2 September 2016 over Q1 June 2016 (excluding the gains from stake sale in Mahanagar Gas), largely on account of better performance in natural gas transmission and petrochemical segment.
During the quarter, GAIL's petrochemical business has seen a turnaround with sales jumping 61% on year-on-year basis. This has resulted in increase in revenue in this segment by 53% to Rs 1358 crore and the profit stood at Rs 104 crore in Q2 September 2016 as against loss of Rs 364 crore in Q2 September 2015.
The increase in net profit during Q2 September 2016 on year on year basis, was also supported by increase in natural gas marketing & transmission volumes by 8% and 12% respectively and liquid hydrocarbon sales by 9%.
Ambuja Cements was off 0.83%. ACC was down 0.75%. In a press release yesterday, 15 November 2016, LafargeHolcim announced that its subsidiary Holderind Investments has increased its shareholding in Ambuja Cements by 3.91 crore shares to 125.31 crore shares (63.11% of total Ambuja shares) and in ACC, a subsidiary of Ambuja, by 78.70 lakh shares shares to 84.11 lakh shares (4.48% of total ACC shares). The purchase price will be paid in Indian rupees. The impact on LafargeHolcim's net debt is CHF 325 million. This investment was not included in the Group's net debt objective of around CHF 13 billion at the end of 2016 which should be adjusted accordingly, LafargeHolcim said. India is one of LafargeHolcim's key markets with very solid long term fundamentals and a clear potential for further improvement in business performance. These share purchases further increase the Group's interest in its two strong companies which constitute a solid platform from which to capture future growth, LafargeHolcim said.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 2.18%) and HPCL (up 1.99%) gained. Indian Oil Corporation (IOCL) (down 0.28%) declined. IOCL yesterday, 15 November 2016 announced that the petrol price was decreased by Rs 1.46 per litre and diesel price was cut by Rs 1.53 a litre (excluding state levies) with effect from the midnight of 15/16 November 2016.
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