2:59 pm Market Update:
The Sensex rose 231.86 points or 0.90 percent to 25937.79 and the Nifty jumped 60.35 points or 0.77 percent to 7889.45.
About 1236 shares have advanced, 1317 shares declined, and 124 shares are unchanged on the BSE.
2:50 pm Buzzing: Shares of JMC Projects shot up more than 19 percent intraday on securing orders worth Rs 702 crore in Bihar and Karnataka.
The civil engineering and EPC company has received orders for Bhagalpur Water Supply projects worth approximately Rs 199 crore and building for Central University of Bihar at Gaya approximately Rs 152 crore.
It also bagged orders for Karnataka State Highways improvement project Rs 181 crore and two building projects in Bangalore worth approximately Rs 170 crore.
JMC Projects (India) is a subsidiary of Kalpataru Power Transmission.
2:40 pm Tata Steel in News: Tata Steel has got the Environment Ministry’s approval for more than doubling the capacity of its Jamshedpur-based cold rolling mill at an investment of Rs 126 crore.
The plant’s capacity will go up to 0.8 million tonnes per annum (MTPA) from the existing 0.3 MTPA. The domestic steel giant, which is among the top-ten global steel companies, will manufacture hot rolled skin passed pickled and oiled (HRSPO) coils and hot rolled pickled and oiled (HRPO) coils here.
In January, an Expert Appraisal Committee (EAC) of the Environment Ministry had recommended giving environment clearance (EC) to Tata Steel’s proposal to expand its capacity at Cold Rolling Mill complex located in Jamshedpur, Jharkhand.
“The Environment Ministry has considered the Tata Steel’s application based on the recommendation of the EAC and decided to grant the final EC yesterday,” a senior Environment Ministry official said. The EC has been issued to the company subject to some conditions, the official added.
2:30 pm MMTC to aid Goa mining industry: Plagued by crisis due to the ongoing slowdown, Goa’s mining industry has got a saviour in the Minerals and Metals Trading Corporation (MMTC), which has offered support to help sell iron ore in the international market.
The industry, which is expected to start fresh extraction from next month, has been wary of its prospects due to high prices in the the global market and subdued low grade ore demand.
“MMTC, being a pioneer in export of various minerals for the last five decades, has volunteered its service to assist the Goa government to dispose of the large chunk of iron ore lying along various operational areas of mines, jetties and the port,” according to an official release today.
The company is a canalised agency of the central government for higher grade iron ore (+64% Fe). MMTC CMD Ved Prakash, along with other officials, had met the Chief Minister yesterday in this connection.
2:20 pm Oil Update: Oil prices rose today after an unexpected US stockpile drawdown and higher gasoline prices, but concerns remained about a global surplus, falling Asian demand and whether the US Federal Reserve would raise interest rates.
Front-month US West Texas Intermediate (WTI) crude futures traded up 55 cents at USD 45.14 per barrel. Brent was up 45 cents at USD 48.20 a barrel.
The prospect of falling US oil production as prices skim six-year lows has narrowed the gap between benchmark US and Brent crude futures.
The Brent-WTI spread between the two prompt months shrank on Tuesday to around USD 1.45 a barrel, the narrowest since January, when WTI briefly cost more than Brent. The spread was around USD 2.60 on Wednesday.
Also read – Markets will rally before earnings turn around: HSBC
2:00 pm Market Check
The market remained strong in afternoon trade on positive global cues ahead of Federal Reserve’s monetary policy meeting tonight. The Sensex climbed 293.53 points or 1.14 percent to 25999.46 and the Nifty jumped 78.55 points or 1 percent to 7907.65.
Bharti Airtel (2.9 percent), Bajaj Auto (2.8 percent), Hero Motocorp (2.6 percent) and Axis Bank (2.5 percent) are the top gainers in Nifty. Among the losers are BHEL (-0.7 percent), Larsen (-0.4 percent) and Dr Reddys Labs (-0.2 percent).
Investors did not show much interest for midcap and small cap shares, with the respective indices on the BSE down 0.1 percent and 0.1 percent respectively.
Indiabulls Housing (-4 percent), HPCL (-4 percent), Emami (-3 percent), Container Corp (-3 percent) and UPL (-3 percent) were the big losers in the midcap space. Other notable laggards included Bharat Forge (-2 percent), Eicher Motors (-2 percent), Reliance Capital (-2 percent), Oil India (-2 percent) and Havells India (-2 percent).
Amtek Auto plunged 9 percent after Standard & Poor’s downgraded subsidiary Amtek Global Technologies’ senior secured term loans worth 235 million euro and a 30 million euro revolving credit facility to CCC+ from B+ and placed on credit watch.
European shares were trading firm with France’s CAC up 58 points or 1.3 percent at 4627, Germany’s DAX up 87 points at 10275, and UK’s FTSE up 49 points at 6186.