A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 19.86 points or 0.07% at 27,384.78. The 50-unit CNX Nifty was up 9 points or 0.11% at 8,284.05. The market breadth indicating the overall health of the market was strong. On BSE, 1,467 shares rose and 798 shares fell. A total of 143 shares were unchanged. The BSE Mid-Cap index was up 0.8%. The BSE Small-Cap index was up 0.75%. Both these indices outperformed the Sensex.
There was lack of direction from overseas markets. There was no big move on either side for key Asian markets. US stocks registered small gains yesterday, 19 October 2015, in range-bound trading session.
Shares of oil exploration firms declined after overnight decline in global crude oil prices. Reliance Industries (RIL) (down 0.66%), Cairn India (down 1.09%), ONGC (down 1.07%) and Oil India (down 0.70%) dropped. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Shares of public sector oil marketing companies edged higher as global crude oil prices fell. BPCL (up 0.20%), Indian Oil Corporation (up 0.20%) and HPCL (up 0.98%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
In global commodities markets, Brent for December settlement was currently up 21 cents at $48.82 a barrel. The contract had lost $1.85 a barrel or 3.66% to settle at $48.61 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 64.92, compared with its close of 64.80 during the previous trading session.
Power generation stocks were in demand. Torrent Power (up 6.54%), Reliance Power (up 6.37%), GMR Infrastructure (up 6.08%), Adani Power (up 5.92%), JSW Energy (up 4.42%), Tata Power (up 3.10%), NHPC (up 1.98%), CESC (up 1.42%), Jaiprakash Power Ventures (up 1.37%), Reliance Infrastructure (up 1.24%) and NTPC (up 0.94%), edged higher.
Tinplate Company of India gained 2.94% to Rs 70.05 after net profit rose 43.8% to Rs 21.08 crore on 10.7% fall in net sales to Rs 223.43 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 19 October 2015.
SKS Microfinance rose 2.46% to Rs 460 after net profit rose 37.19% to Rs 77.85 crore on 61.31% rise in total income to Rs 324.28 crore in Q2 September 2015 over Q2 September 2014. The company announced results after market hour yesterday, 19 October 2015.
Meanwhile, global credit rating agency Standard & Poor's Ratings Services (S&P) has affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit rating on India with stable outlook on the rating. S&P said in a statement that its current ratings on India reflect the country's sound external profile and improved monetary credibility. However, India's low per capita income and weak public finances are two major constraints on India's sovereign ratings, S&P said. According to S&P, India has made progress to address long-standing impediments to growth. These include strengthening the business climate, improving labor market flexibility and reforming the energy sector. S&P expects the Centre's revenue to get a boost in the medium term from the likely introduction of the goods and services tax. According to the rating agency, domestic supply-side constraints will put a lid India's economic growth.
S&P further said that based on its current assessment, the rating agency is unlikely to change its current sovereign ratings on India till at least 2016.
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