Amid a lackluster and rangebound session of trade so far, key indices trimmed gains after consolidating on to its initial gains and hitting fresh intraday high in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 29.67 points or 0.11% at 26,337.65. The Nifty 50 index was currently up 8.25 points or 0.1% at 8,090.65. Asian stocks have now turned mixed.
After a bout of initial volatility after opening higher triggered by modest gains in Asian stocks, indices so far traded in positive terrain albeit with small gains.
The BSE Mid-Cap index was up 0.28%. The BSE Small-Cap index was currently up 0.34%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,212 shares rose and 884 shares declined. A total of 130 shares were unchanged.
Overseas, Asian stocks were mixed amid volatility after overnight advances in US stocks. China's Shanghai Composite led gainers in Asian stocks rising 1.16%. Among economic news in Asia, the Japanese government raised its overall assessment of the domestic economy for the first time in 21 months today, 21 December 2016, though it still took a cautious line on uncertainties in the global economy.
The government said in its monthly report for December that the economy is continuing on a moderate recovery path. Previously, the government said there were spots of weakness while noting that a gradual recovery was under way.
US stocks rose yesterday, 20 December 2016, with the Dow Jones Industrials Average and Nasdaq hitting their latest in a series of records, as the market's recent upward trend, led by a rally in bank stocks continued unabated.
Back home, among the sectoral trend, telecom stocks saw a buying interest. Bharti Airtel (up 0.74%), MTNL (up 0.79%) and Idea Cellular (up 0.82%) gained.
Reliance Communications (RCom) rose 4.71% on reports that the company is likely to announce tower sale deal with the Brookfield Group this week. According to reports, The Brookfield Group is set to sign a definitive agreement with RCom this week to buy a majority stake in the Anil Ambani-controlled telecoms company's tower unit for about Rs 11000 crore.
On 11 October 2016, RCom had announced signing of a non-binding term sheet with Brookfield Infrastructure Group (Brookfield) in relation to the proposed acquisition of RCom's nationwide tower assets and related infrastructure by Brookfield. Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate special purpose vehicle (SPV), to be owned by Brookfield.
RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCom will receive an upfront cash payment of Rs 11000 crore from the proposed transaction. RCom will also enjoy 49% future economic upside from the towers business, based on certain conditions. RCom had stated that it intended to utilize the proceeds of the proposed transaction solely to reduce its debt.
Shares of Bharti Infratel fell 0.72%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
While, cement stocks were mixed. Shree Cement (down 0.49%) and Ambuja Cements (down 0.27%) declined. ACC (up 1%) and UltraTech Cement (up 0.99%) gained.
Grasim Industries advanced 0.11%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
In news specific action in side counters, Datamatics Global Services surged 7.73% at Rs 121.95 on BSE after Insync Capital Partners LLP bought shares in the company in a bulk deal on BSE yesterday, 20 December 2016.
Insync Capital Partners LLP bought 2.95 lakh shares of Datamatics Global Services at an average price of Rs 102.08 per share in a bulk deal on BSE yesterday, 20 December 2016. Insync Capital Partners LLP sold 153 shares of the company at an average price of Rs 113.10 per share in a bulk deal on BSE yesterday, 20 December 2016. Amrita Vidur Bhogilal was seller to the tune of 5 lakh shares at an average price of Rs 102.08 per share in the bulk deal on BSE yesterday, 20 December 2016.
Insync Capital Partners LLP is a Limited Liability Partnership firm incorporated in 2009. Designated Partners of the company are Utpal Hemendra Sheth, Amitabh Sonthalia, Rakesh Radheyshyam Jhunjhunwala and Rekha Jhunjhunwala.
Oriental Carbon & Chemicals rose 0.05% after the company said it has commissioned the commercial production of its project for expansion of insoluble sulphur production capacity at Mundra in Gujarat. The announcement was made after market hours yesterday, 20 December 2016.
The company announced that it has commissioned/started the commercial production, ahead of schedule, on 20 December 2016, of the first phase of 5,500 metric tonnes per annum capacity of its project for expansion of insoluble sulphur production capacity at special economic zone (SEZ) at Mundra, Gujarat.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
