Sensex, Nifty hit over two-week high

Extending intraday gains, the key benchmark indices hit fresh intraday high in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 255.23 points or 0.97% at 26,622.71. The Nifty 50 index was currently up 74.60 points or 0.92% at 8,178.20. Both the Sensex and the Nifty hit their highest levels in over two weeks. The broad market depicted strength. Positive Asian stocks and steady buying by domestic institutional investors boosted sentiment on the domestic bourses.

Trading for the last day of the week and the calendar year 2016 kicked-off on an upbeat note on positive Asian stocks. Domestic stocks kept on gaining ground thereafter as the day's trade progressed. The Sensex gained 276.03 points or 1.05% at the day's high of 26,642.18 in early afternoon trade, its highest level since 15 December 2016. The index rose 40.38 points or 0.15% at the day's low of 26,406.53 at the onset of the session. The Nifty gained 78.45 points or 0.97% at the day's high of 8,182.05 in early afternoon trade, its highest level since 15 December 2016. The index rose 11.15 points or 0.14% at the day's low of 8,114.75 at the onset of the session.

 

Data showed that domestic institutional investors (DIIs) bought shares worth a net Rs 957.83 crore yesterday, 29 December 2016, as per provisional data. The foreign portfolio investors (FPIs) sold shares worth a net Rs 662.29 crore yesterday, 29 December 2016, as per provisional data released by the stock exchanges.

The BSE Mid-Cap index was currently up 1.28%. The BSE Small-Cap index was currently up 1.06%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were almost three gainers against every loser on BSE. On the BSE, 1,722 shares rose and 580 shares fell. A total of 126 shares were unchanged.

IT stocks gained. Infosys (up 1.3%), Tech Mahindra (up 2.03%), MindTree (up 0.99%), Wipro (up 0.18%), HCL Technologies (up 0.74%), Oracle Financial Services Software (up 0.41%), TCS (up 0.68%) and Hexaware Technologies (up 0.66%) rose. MphasiS (down 0.29%) fell.

RS Software (India) rose 3.13% after the company said it made further investment in its wholly-owned subsidiary, Paypermint by acquiring 59 lakh equity shares for Rs 5.90 crore. RS Software (India) holds 75% stake in Paypermint. The announcement was made after market hours yesterday, 29 December 2016.

Realty stocks rose. DLF (up 1.32%), Indiabulls Real Estate (up 1.72%), Housing Development and Infrastructure (up 5.55%), D B Realty (up 1.26%), Unitech (up 2.54%), Sobha (up 0.59%), Oberoi Realty (up 0.48%) and Parsvnath Developers (up 0.95%) gained. Prestige Estates Projects (down 2.14%) fell.

Godrej Properties fell 0.13%. The company announced that it has entered into a partnership to develop a residential group housing project in the prime locality of Bavdhan, West Pune. Spread over 5.5 acres, the project will offer approximately 52,000 square metres (560,000 square feet) of saleable area and will be developed as a modem residential development comprising of apartments of various configurations. This project will be developed under the profit share arrangement. The announcement was made before market hours today, 30 December 2016.

Shriram Transport Finance Company rose 3.31% after the company said it has allotted unsecured redeemable rated listed non-convertible subordinated debt in the nature of debentures aggregating to Rs 75 crore yesterday, 29 December 2016 on private placement basis. The debentures have tenure of 10 years and carry coupon rate of 8.5% per annum. The announcement was made after market hours yesterday, 29 December 2016.

Berger Paints India rose 1.23% to Rs 212 after the company's promoter entities rejigged their holding in the company via block deal mechanism on the stock exchanges. Kuldip Singh Dhingra sold 5 lakh shares of Berger Paints India at Rs 208 per share in a block deal on the NSE yesterday, 29 December 2016. Vinu Dhingra offloaded 5 lakh shares at Rs 208 a piece. U K Paints India bought these entire 10 lakh shares.

Kuldip Singh Dhingra held 0.7% stake, Vinu Dhingra owned 0.83% and U K Paints India held 48.67% stake in Berger Paints India end September 2016.

Meanwhile, with the 50-day period for depositing of demonetised Rs 500 and Rs 1000 notes expiring today, 30 December 2016, Prime Minister Narendra Modi is reportedly set to address the nation at 19:30 IST tomorrow, 31 December 2016. In his address, the Prime Minister may reporedtly speak about the roadmap post the demonetisation period especially on the steps likely to be taken to ease cash flow that has been a major problem ever since demonetisation took place. He may also speak on the steps to deal with the problems the economy faces after the demonetisation was announced on 8 November 2016. On Tuesday, 27 December 2016, Modi had met economists and experts at a meeting in Niti Aayog to discuss the current economic situation.

On the economic front, the government will release data for several economic indicators today, 30 December 2016 including fiscal deficit, foreign exchange reserves, foreign debt and trade figures.

Overseas, Asian stocks were trading higher. US stocks closed fractionally lower yesterday, 29 December 2016 as investors remained reluctant to make big bets in a thinly-traded session ahead of long holiday weekend.

On the US data front, jobless claims declined by 10,000 to 265,000 for the week ending 24 December 2016, according to Labor Department report. This marks the 95th straight week that claims were below 300,000, a threshold associated with a healthy labor market.

Meanwhile, US trade deficit grew last month, according to a report released by the Commerce Department on Thursday. The initial estimate, which does not include trade in services, showed that the country exported $1.2 billion less in November than in October. Imports rose by $2.2 billion during the month.

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