A rally in European stocks helped trigger gains for Indian stocks which rose for the second day in a row. The barometer index, the S&P BSE Sensex, gained 135.17 points or 0.54% at 25,285.52, as per the provisional closing data. The gains for the 50-unit Nifty 50 index were higher in percentage terms compared with those for the Sensex. The Nifty rose 50.85 points or 0.66% at 7,700.90, as per the provisional closing data. The Sensex and the Nifty, both, hit one-week high in late trade. The Sensex rose 192.43 points or 0.76% at the day's high of 25,342.78 in late trade, its highest level since 8 December 2015. The barometer index fell 74.81 points or 0.29% at the day's low of 25,075.54 in morning trade. The Nifty rose 54.95 points or 0.71% at the day's high of 7,705 in late trade, its highest level since 8 December 2015. The index fell 24.95 points or 0.32% at the day's low of 7,625.10 in morning trade.
In overseas stock markets, European shares surged led by gains in oil and gas stocks as global crude oil futures clawed back from multi-year lows. Earlier during the global day, Asian stocks ended on a mixed note amid caution ahead of a highly anticipated US Federal Reserve meeting this week. The Fed is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 16 December 2015. With markets having already priced in a 25 basis points rate hike this week, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. US stocks ended a volatile session with modest gains yesterday, 14 December 2015, lifted by a rebound in crude-oil prices.
The market breadth indicating the overall health of the market was positive. On BSE, 1,581 shares rose and 1,065 shares fell. A total of 203 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.56%. The BSE Small-Cap index provisionally rose 0.69%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2568 crore, higher than turnover of Rs 2424.96 crore registered during the previous trading session.
Stocks of oil production and exploration companies edged higher as global crude oil futures clawed back from multi-year lows. Cairn India (up 1.40%) and ONGC (up 2.06%) edged higher. Oil India fell 0.76%.
In the global commodities markets, Brent for January settlement was currently up 73 cents at $38.65 a barrel. The contract had ended almost unchanged at $37.92 a barrel during the previous trading session. Brent for February settlement was currently up 56 cents at $38.72 a barrel. The Brent January contract expires tomorrow, 16 December 2015.
Index heavyweight Reliance Industries rose 2.14% at Rs 975.90. The stock hit a high of Rs 977.90 and a low of Rs 953 in intraday trade.
Index heavyweight and housing finance major HDFC rose 1.26% at Rs 1,202.60. The stock hit a high of Rs 1,209.50 and a low of Rs 1,180 in intraday trade.
Index heavyweight and cigarette major ITC rose 1.02% at Rs 322.90. The stock hit a high of Rs 323.60 and a low of Rs 318.10 in intraday trade.
Index heavyweight and IT major Infosys rose 0.7% at Rs 1,077. The stock hit a high of Rs 1,079 and a low of Rs 1,058.15 in intraday trade.
Bosch rose 2.80% to Rs 18,752.05. The stock hit a high of Rs 18,885 and a low of Rs 18,161.05 in intraday trade.
Aviation stocks surged. Interglobe Aviation (up 8.43%), SpiceJet (up 7.04%) and Jet Airways (India) (up 5.10%) edged higher.
Auto stocks were in demand. TVS Motor Company (up 3.29%), Eicher Motors (up 3.03%), Ashok Leyland (up 1.69%), Bajaj Auto (up 1.63%), Escorts (up 1.61%), Maruti Suzuki (India) (up 1.32%) and Hero MotoCorp (up 1.09%), edged higher.
Tata Motors edged higher in volatile trade. The stock rose 1.96% at Rs 379. The stock hit a high of Rs 380.65 and a low of Rs 365.10 in intraday trade.
Mahindra & Mahindra (M&M) fell 0.21%. Tech Mahindra fell 4.15%. Tech Mahindra and Mahindra & Mahindra (M&M) have jointly entered into an agreement with Pincar S.r.l., to purchase a controlling stake in Pininfarina S.p.A., an iconic Italian brand in automotive and industrial design. The announcement was made after market hours yesterday, 14 December 2015. Pininfarina is an automotive design and engineering services company providing services to global automotive OEMs. Pininfarina clocked revenue of about euro 86.60 million in year ended 31 December 2014. The acquisition will broaden Tech Mahindra's engineering service offering to its customers.
As part of the agreement, Tech Mahindra and M&M shall purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincar S.r.l. at a price of euro 1.1 per share. This investment by Tech Mahindra and M&M shall be done via a special purpose vehicle (SPV) whose ownership shall be held 60% by Tech Mahindra and 40% by M&M. This will be followed by an open offer for all the remaining ordinary shares of Pininfarina at the same purchase price paid for the shares held by Pincar. The SPV will infuse funds to the tune of euro 20 million into Pininfarina by way of a rights issue before the end of 2016. Tech Mahindra and M&M have also signed definitive agreement with the lenders, creditors and lessors of Pininfarina to restructure the existing debt of Pininfarina. Tech Mahindra and M&M have also decided to provide on a joint and several basis corporate guarantee not exceeding euro 114.50 million to the lenders, creditors and lessors of Pininfarina.
Pininfarina will continue to remain an independent company, listed on the Milan Stock Exchange, with Paolo Pininfarina continuing as the Chairman of its board.
On the macro front, data released by the government after trading hours yesterday, 14 December 2015, showed that inflation based on the consumer price index (CPI) spiked to 5.41% in November 2015 from 5% in October 2015. The acceleration in consumer price inflation was driven by an increase in food prices.
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