Key benchmark indices logged modest gains led by index heavyweights HDFC and Reliance Industries (RIL). The barometer index, the S&P BSE Sensex, rose 155.47 points or 0.59% to 26,366.15, as per the provisional closing data. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 68.75 points or 0.86% at 8,103.60, as per the provisional closing data. Intraday volatility was high as December 2016 derivatives contracts expired today, 29 December 2016.
Earlier, after reversing initial decline, the key indices indices gyrated in a small range until mid-afternoon trade only to gain strength in late trade. Both the Sensex and the Nifty hit their highest levels in over one week. The Sensex surged 218.95 points or 0.84% at the day's high of 26,429.63 in opening trade, its highest level since 20 December 2016. The index fell 44.01 points or 0.17% at the day's low of 26,166.67 at the onset of the session, its lowest level since 27 December 2016. The Nifty gained 76.25 points or 0.95% at the day's high of 8,111.10 in late trade, its highest level since 21 December 2016. The index declined 14.05 points or 0.17% at the day's low of 8,020.80 at the onset of the session, its lowest level since 27 December 2016.
The market was volatile during the day as traders rolled over positions in the futures & options (F&O) segment from the near month December 2016 series to January 2017 series. The near month December 2016 derivatives contracts expired today, 29 December 2016.
Mid-Cap and Small-Cap counters witnessed renewed buying in last few sessions. In side indices, the BSE Mid-Cap index provisionally rose 1.19%. The BSE Small-Cap index provisionally rose 1.11%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,672 shares rose and 906 shares fell. A total of 169 shares were unchanged.
The total turnover on BSE amounted to Rs 1982.79 crore, lower than the turnover of Rs 2467.40 crore registered during the previous trading session.
Index heavyweight and housing finance major HDFC advanced 1.67% to Rs 1,257.50. The stock hit high of Rs 1,261.40 and low of Rs 1,230.25 in intraday trade.
Index heavyweight Reliance Industries (RIL) rose 1.31% after the company announced the successful commissioning of the first phase of Para-xylene (PX) plant at Jamnagar, Gujarat. The announcement was made after market hours yesterday, 28 December 2016.
The plant with capacity of 2.2 million metric tonnes per annum (MMTPA) is built with state-of-theart crystallization technology from BP which is highly energy efficient and environment friendly. With the commissioning of this plant, RIL's PX capacity will more than double from 2 MMTPA to 4.2 MMTPA. On commissioning of entire PX capacity, RIL will be the world's second largest PX producer with 9% of global PX capacity and 11% share of global production.
The new PX capacity will add value to the output from refineries and improve the profitability of the Jamnagar complex. PX is the building block for the entire polyester chain. The new capacity will complete the integration within RIL's polyester value chain, leading to improved margins and also strengthen its position in polyester industry globally.
Mukesh D. Ambani, Chairman and Managing Director, RIL, said the commissioning of the new PX plant marks beginning of the culmination of a series of projects including the refinery off-gas cracker, ethane import project and petcoke gasification. These projects are part of the largest contemporary investment, in excess of Rs 1 lakh crore, in Refining and Petrochemicals sector anywhere in the world. RIL's projects are on schedule and at an advanced stage of mechanical completion. The new PX capacity takes RIL a step closer to being among the top 10 petrochemical players globally, Ambani said.
Metal and mining stocks gained as copper prices rose in global commodity markets. Vedanta (up 2.9%), JSW Steel (up 1.23%), Tata Steel (up 0.95%), Steel Authority of India (Sail) (up 2.8%), National Aluminium Company (up 6.62%), Hindustan Zinc (up 2.76%), Jindal Steel & Power (up 2.21%), Hindalco Industries (up 0.55%), NMDC (up 1.82%) and Hindustan Copper (up 0.34%) edged higher.
Copper edged higher in the global commodities market. High Grade Copper for March 2017 delivery was currently up 0.5% at $2.513 per pound on the COMEX.
Overseas, European shares were trading lower as banking shares and miners fell. Asian stocks settled on a mixed note. Trading has been thin across the globe during the last week of the year. US stocks fell yesterday, 28 December 2016 as shares financials and materials declined. In economic news, the Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 2.5% to 107.3 in November from 110 in October, data released by National Association of Realtors showed yesterday, 28 December 2016.
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