Key benchmark indices logged small gains in what was a highly volatile last trading day of the week. The barometer index, the S&P BSE Sensex, gained 28.26 points or 0.1% to settle at 28,892.97. The Nifty 50 index rose 12.60 points or 0.14% to settle at 8,939.50. The Sensex settled below the psychological 29,000 level, after surging past that level in intraday trade. Both the Sensex and the Nifty hit their highest levels in 24 weeks. Key equity benchmarks registered gains for sixth day in a row today, 23 February 2017. Indian stock markets remains shut tomorrow, 24 February 2017 on account of Mahashivratri.
Shares of index heavyweight Reliance Industries (RIL) fell on profit booking. Telecom shares rose after Bharti Airtel said it will acquire Telenor India. IT stocks reversed yesterday's slide. Bank stocks saw mixed trend.
The Sensex gained 28.26 points or 0.1% to settle at 28,892.97, its highest closing level since 8 September 2016. The Sensex gained 160.97 points or 0.56% at the day's high of 29,065.31 in mid-afternoon trade. The index shed 4.25 points or 0.1% at the day's low of 28,860.46 in late trade.
The Nifty 50 index rose 12.60 points or 0.14% to settle at 8,939.50, its highest closing level since 8 September 2016. The Nifty gained 55.25 points or 0.62% at the day's high of 8,982.15 in mid-afternoon trade. The index rose 0.65 points or 0.01% at the day's low of 8,927.55 in late trade.
Intraday volatility was high. After opening with a positive bias, key benchmark indices continued to extend intraday gains till mid-afternoon trade. Domestic stocks trimmed gains in late trade on profit booking.
The BSE Mid-Cap index rose 0.19%. The BSE Small-Cap index rose 0.11%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On the BSE, 1,529 shares declined and 1,232 shares rose. A total of 203 shares were unchanged.
The total turnover on BSE amounted to Rs 3272.71 crore, lower than the turnover of Rs 3575.62 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 0.12%), the S&P BSE Capital Goods index (up 0.29%), the S&P BSE Metal index (up 0.39%), the S&P BSE Consumer Durables index (up 0.47%), the S&P BSE Realty index (up 0.78%), the S&P BSE Teck index (up 1.65%), the S&P BSE IT index (up 1.70%) and the S&P BSE Telecom index (up 1.82%) outperformed the Sensex. The S&P BSE Healthcare index was flat at 15,341.90. The S&P BSE Energy index (down 0.8%), the S&P BSE Power index (down 0.68%), the S&P BSE Utilities index (down 0.65%), the S&P BSE Oil & Gas index (down 0.26%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.23%), the S&P BSE Auto index (down 0.06%), the S&P BSE Finance index (down 0.04%), the S&P BSE Industrials index (down 0.02%), the S&P BSE FMCG index (up 0.06%) and the S&P BSE Bankex (up 0.07%), underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) fell 2.07% to Rs 1,182.60 on profit booking. The stock had hit a high of Rs 1,222.30 in intraday trade, which is its highest level since 19 May 2009. The stock had hit a low of Rs 1,179.20 in intraday trade. The stock had hit a 52-week low of Rs 925.70 on 23 May 2016. Reliance Industries (RIL) counter had risen 12.47% in two sessions to settle at Rs 1,207.65 on 22 February 2017, from a close of Rs 1,073.70 on 20 February 2017, triggered by the company announcing that Reliance Jio Infocomm has breached the 100 million customer mark in 170 days. The announcement was made at the fag end of market hours on 21 February 2017.
Telecom shares rose after Bharti Airtel said it will acquire Telenor India. Bharti Airtel (up 1.36%), Idea Cellular (up 6.4%), Tata Teleservices (Maharashtra) (up 2.65%), Reliance Communications (up 3.22%) and MTNL (up 1.35%) edged higher.
Telecom tower infrastructure provider Bharti Infratel shed 0.77%.
Bharti Airtel, India's largest telecommunications services provider, announced that it has entered into a definitive agreement with Telenor South Asia Investments (Telenor) to acquire Telenor (India) Communications (Telenor India). The acquisition is subject to requisite regulatory approvals. As part of the agreement, Airtel will acquire Telenor India's running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles represent a high population concentration and therefore offer a high potential for growth. The announcement was made before trading hours today, 23 February 2017.
The entry of Reliance Jio with its free services has had significant impact on the existing telecom operators.
The telecom sector has been abuzz with news of massive mergers to fight Reliance Jio's might. As per recent media reports, Tata Teleservices is mulling to join the planned Reliance Communications (RCom)-Aircel-MTS merger, while Idea Cellular is reportedly planning a merger with Vodafone India.
NTPC fell 0.78%. The company said that the 115 megawatts (MW) out of 260 MW of Bhadla Solar Power Project of NTPC has been commissioned. With this, the installed capacity of NTPC's solar power projects has touched 475 MW. The total installed capacity of NTPC on standalone basis has become 41177 MW and that of NTPC group has become 48143 MW. The announcement was made after market hours yesterday, 22 February 2017.
Index heavyweight and cigarette major ITC gained 0.83% to Rs 265.70. The stock hit a high of Rs 267.15 and low of Rs 261.65 in intraday trade.
IT stocks reversed yesterday's slide. TCS (up 2.99%), Infosys (up 1.73%), Wipro (up 2.53%), HCL Technologies (up 0.69%), Oracle Financial Services Software (up 1.4%), MindTree (up 0.36%), Hexaware Technologies (up 0.57%) and MphasiS (up 1.61) rose. Tech Mahindra (down 0.84%) fell.
Bank stocks saw mixed trend. Among private bank stocks, Kotak Mahindra Bank (up 1.67%), RBL Bank (up 7.17%), Axis Bank (up 0.61%), IndusInd Bank (up 1.4%) gained. ICICI Bank (down 0.52%), HDFC Bank (down 0.3%) and Yes Bank (down 0.26%) declined.
PSU bank stocks, Bank of Maharashtra (down 1.86%), State Bank of India (SBI) (down 0.48%), Bank of India (down 0.08%), Canara Bank (down 0.05%), Punjab National Bank (down 1.16%), and Union Bank of India (down 1.97%) dropped. Allahabad Bank (up 3.17%), Andhra Bank (up 2.01%), UCO Bank (up 1.37%), Bank of Baroda (up 0.27%), Vijaya Bank (up 1.46%), rose.
Tata Motors rose 0.4% after the company said its board will meet on 2 March 2017 to consider raising Rs 500 crore through private placement of non-convertible debentures. The announcement was made during trading hours today, 23 February 2017.
Tata Motors said it is desirous of offering the sixth series of its rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) aggregating to Rs 500 crore. In this regard, the company will hold a meeting of its duly constituted committee of the board on 2 March 2017. The above issuance is pursuant to the approval of the shareholders passed vide special resolution at the 71th annual general meeting of the company held on 9 August 2016 and the board of directors' resolution passed at its meeting held on 14 February 2017.
Asian Oilfield Services rose 3.09% after the company said its subsidiary won a contract for providing operations and maintenance services for an offshore production unit in Nigeria. The announcement was made after market hours yesterday, 22 February 2017.
Asian Oilfield Services said that its wholly-owned subsidiary, Asian Oilfield & Energy Services DMCC, Dubai, has signed a contract for providing operations and maintenance services (O&M) for an offshore production unit operating at EBOK field offshore Nigeria. The total value of contract is about $95 million for a total period of 5 years (inclusive of client options).
Further, the company's wholly owned subsidiary Asian Oilfield & Energy Services DMCC has also entered into an agreement to acquire 99.99% shareholding of Ivorene Oil Services Nigeria (a company registered under Nigeria) to provide local support for this O&M contract.
Ruchira Papers rose 1.92% after the company said that its board will meet on 3 March 2017, to consider preferential issue of convertible securities. The announcement was made during market hours today, 23 February 2017.
Meanwhile, International Monetary Fund (IMF) said yesterday, 22 February 2017 that India's overall outlook remains positive, although growth will slow temporarily as a result of disruptions to consumption and business activity from the recent withdrawal of high-denomination banknotes from circulation. But the nation's expansion will pick up again as economic reforms kick in, said the IMF in its latest assessment. IMF reduced is growth forecasts to 6.6% for fiscal year 2016-17 and to 7.2% in 2017-18.
Challenges remain, however, and there is little scope for complacency. A key concern is the health of the banking system, which is still dealing with a large amount of bad loans, and also heightened corporate vulnerabilities in several key sectors of the economy, IMF said.
Overseas, European stocks gyrated between small gains and losses, as investors sifted through earnings reports. Asian stocks were trading mixed as investors digested the minutes of the Federal Reserve's January policy meeting.
US equities closed mixed yesterday, 22 February 2017 after minutes from the Federal Reserve's previous meeting hinted that a rate hike coming fairly soon. Wall Street was eagerly awaiting the release of these minutes, as they looked for more clues about when and how many times the Fed would raise rates this year.