Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 370.12 points or 1.41% at 26,606.99. The Nifty 50 index was up 114.40 points or 1.41% at 8,216.45. Positive cues from Asian markets boosted investors' sentiment.
The Sensex and the Nifty, both, hit their highest intraday levels in one week. The Sensex rose 373.42 points, or 1.42% at the day's high of 26,610.29 in morning trade, its highest level since 1 December 2016. The index rose 120.48 points, or 0.46% at the day's low of 26,357.35 in early trade. The Nifty rose 114.05 points, or 1.41% at the day's high of 8,216.10 in morning trade, its highest level since 1 December 2016. The index rose 49.70 points, or 0.61% at the day's low of 8,151.75 in early trade.
The broad market depicted strength. There were more than four gainers against every loser on BSE. 1,614 shares rose and 331 shares fell. A total of 86 shares were unchanged. The BSE Mid-Cap index was currently up 1.28%. The BSE Small-Cap index was currently up 1.26%. Both these indices underperformed the Sensex.
IT stocks rose across the board. Infosys (up 1.51%), Oracle Financial Services Software (up 1.45%), MindTree (up 1.05%), Hexaware Technologies (up 1.04%), TCS (up 1.01%), Tech Mahindra (up 1%), MphasiS (up 0.75%), Wipro (up 0.70%), HCL Technologies (up 0.45%) and Persistent Systems (up 0.06%), edged higher.
Metal shares were in demand. Steel Authority of India (up 3.56%), Jindal Steel & Power (up 2.66%), Vedanta (up 2.38%), Hindustan Copper (up 2.22%), Hindalco Industries (up 2.09%), NMDC (up 1.94%), Bhushan Steel (up 1.85%), National Aluminium Company (up 1.08%), Hindustan Zinc (up 0.93%) and JSW Steel (up 0.81%), edged higher.
Tata Steel was up 2.87%. Tata Steel UK yesterday, 7 December 2016, reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business. The company will next week start consultation with its employees on a proposal to close the British Steel pension scheme to future accrual. Employees would be offered a competitive defined contribution scheme. The proposal on pensions and other changes in the employment terms are part of the ongoing transformation plan that the business is undertaking. As part of agreement all parties will work towards making Tata Steel UK a sustainable business.
The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing blast furnace configuration in Port Talbot until 2021. Further, based on achieving the necessary financial performance and cash flows as per the transformation plan of the UK business, the company will continue to invest across the UK sites to enhance the competitive position of Tata Steel UK in the European steel industry. The company has also offered an employment pact until 2021 which supports employees through future changes by investing in their skills to support further plant upgrades, automation and other digital initiatives.
Tata Steel is the UK's largest steel manufacturer. It supplies almost 50% of UK carmakers' steel requirements, including body panels and chassis, and a range of advanced steels for the UK construction industry which help to reduce buildings' energy use.
Separately, Tata Steel also announced that its subsidiary, TM International Logistics (TMILL) has divested entire stake in its wholly owned step down subsidiary TM Harbour Services (TMHSPL) to Adani Ports and Special Economic Zone (APSEZ) for a total consideration of Rs 106 crore in an all cash deal. TKM Global GmbH, Germany and International Shipping and Logistics FZE, Dubai, subsidiaries of TMILL, hold 74.18% and 25.82% equity shares in TMHSPL respectively. TMHSPL with an annual turnover of about Rs 29 crore is engaged in the business of providing Tug Services at Dhamra Port and owns 3 tug boats.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2017 delivery was currently up 0.21% at $2.6495 per pound on the COMEX.
Overseas, except China's Shanghai Composite, all other Asian stocks were trading higher today, 8 December 2016, after Wall Street strode to new records and bonds rallied on wagers the European Central Bank (ECB) would extend its asset buying campaign at a policy meeting later in the session.
US stocks closed higher yesterday, 7 December 2016, with the Dow industrials and S&P 500 notching new records. Investors are bracing for the ECB's policy-setting meeting today, 8 December 2016.
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