Key Indices Hold On to Positive Zone

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A short period of volatility was seen as key benchmark indices saw gains trimmed shortly after they were extended in the afternoon trade. At 13:19 IST, the S&P BSE Sensex, the barometer index, was up 100.14 points, or 0.41% at 24,777.51. The 50-unit Nifty 50 index was up 40.15 points, or 0.53% at 7,552.70. There was support for gains in global stocks movement up for the two key benchmark indices.

The market breadth indicating the overall health of the market was negative. On BSE, 1,266 shares fell, and 1,095 shares rose. A total of 175 shares were unchanged. The BSE Mid-Cap index was currently up by 0.03%. The BSE Small-Cap index was currently up by 0.13%. Both these indices underperformed the Sensex.

In the stock markets overseas, the majority of Asian stocks climbed higher on the strong currencies related to the US dollar. A broad spectrum weakness in the dollar assisted gains in the Asian currencies on the backs of the US Federal Reserve, cutting its projection for increases in rates to two in 2016. The former projection was four after rates remained unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016. Less US interest rate increases could support demand for the rising market assets as a result of investors having fewer incentives to pull money out of assets that were risky, while searching for higher yields within the USA.

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Photo credit: Bloomberg

Guiding the yuan stronger against the US dollar by Chinese authorities led to Chinese stocks edging higher. In Hong Kong, the Hang Seng index currently was up 0.56%, while in mainland China, the Shanghai Composite index ended 1.73% higher. On March 17 2016, industrial, materials, and energy sectors rose sharply aided by soaring commodity prices causing US stocks to edge higher.

Following a foreign brokerage report repeating its “outperform” rating on the stock IT major, TCS shares caused it to rise 2.48% to Rs 2,410.05. According to the news, at the 17 March 2016 analyst meeting, the brokerage maintained the outperformance rating following the TCS management demonstrating the capabilities of the company and the investments in the digital services business. The foreign brokerage is swayed about the management bandwidth to direct the company at a time when technology is evolving quickly.

Capital goods shares were mixed and the following edged lower:

  • Reliance Defence and Engineering was down 1.72%
  • Havells India was down 0.99%
  • Thermax was down 0.76%
  • SKF India was down 0.39%
  • Punj Lloyd was down 0.67%
  • Jindal Saw was down 0.37%
  • BEML was down 0.79%
  • Alstom T&D India was down 2.42%
  • ALSTOM India was down 0.3%
  • AIA Engineering was down 0.88%
  • ABB India was down 0.67%

Capital goods shares were mixed and the following edged higher:

  • Crompton Greaves was up 0.64%
  • Lakshmi Machine Works was up 0.99%)
  • Suzlon Energy was up 0.07%
  • Larsen & Toubro was up 0.32%
  • Praj Industries was up 0.42%
  • Siemens was up 1.38%
  • Bharat Electronics was up 2.16%

The state-ran Bharat Heavy Electricals (Bhel) was Rs 112.10, up 1.13%. The company publicized during the trading hours of 18 March 2016 that it was going to announce flash results for the 31 March 2016 year-end on 7 April 2016.

The majority of FMCG shares declined and edged lower:

  • Bajaj Corp was down 0.13%
  • Britannia Industries was down 0.21%
  • Dabur India was down 0.12%
  • GlaxoSmithKline Consumer Healthcare was down 0.03%
  • Hindustan Unilever was down 0.98%
  • Jyothy Laboratories was down 1.15%
  • Marico was down 0.51%
  • Nestle India was down 0.24%
  • Procter & Gamble Hygiene & Health Care was down 0.26%

The majority of FMCG shares declined and edged higher:

  • Tata Global Beverages was up 2.24%
  • Godrej Consumer Products was up 0.43%
  • Colgate Palmolive (India) was up 1.93%

[Featured image credit: Oleksiy Mark via Shutterstock / Image cropped]

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