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Last Updated : Dec 06, 2016 11:23 AM IST | Source:

Sensex, Nifty hold early gains; Midcap outperforms, FMCG falls

Equity benchmarks continued to gain amid consolidation, especially ahead of outcome of monetary policy committee that will be announced on Wednesday.

Moneycontrol Bureau

10:59 am Market Update:
The Sensex was up 123.95 points at 26473.05 and the Nifty gained 36.15 points at 8164.90.

About 1489 shares advanced against 623 declining shares on the BSE.

10:50 am Adani's project in Australia:
Indian energy giant Adani today said it will start construction at the USD 21.7 billion Carmichael mine in Australia by the middle of next year and vowed to give priority local workers for the project, which is expected to generate some 10,000 jobs.

The announcement came a day after Adani secured the final approval for a permanent rail line for the controversy-hit project despite protests from green groups.

Adani's efforts to build one of the world's largest coal mine project in Australia's Queensland state has been hampered time and again since its launch six years ago.


"We want to start construction in the middle of next year," Adani Australia chief executive Jeyakumar Janakaraj told reporters after meeting with Queensland state Premier Annastacia Palaszczuk in the city of Townsville.

10:40 am LNG demand in India: Qatar's RasGas is seeing preference for short-term LNG contracts from customers in India, its chief executive said on Tuesday at the Petrotech energy conference in New Delhi.

Hamad Mubarak Al Muhannadi also said that India needs more LNG terminals to unlock demand. Asia's third-largest economy will become the world's second-largest spot and long-term LNG buyer this year, Muhannadi said.

10:20 am Oil demand:
India holds much more weight in the global market because of its constantly increasing demand for crude oil, Daniel Yergin, Co-founder and Chairman of Cambridge Energy Research Associates. India is the third largest importer of oil in the world. By 2040, it will be the second largest importer, says Yergin.

Last week, the OPEC cut its output for the first time in eight years to deal with the global glut of crude oil. Yergin says the agreement was a historic one. He says oil prices would have drifted lower if the OPEC agreement did not happen.

Co-operation between the OPEC members is very important to balance out the excess supply of crude in the world. The goal can be achieved even if all the members don't comply with the agreement, he says.

Russia has played a key role in the OPEC agreement. It acted as a broker between Saudi Arabia and Iran to help the OPEC come to an agreement. There will also need to be co-operation between OPEC and non-OPEC members to deal with the issue.

Also read - Laurus Labs IPO opens today: Should you subscibe?

10:00 am Market Check

Equity benchmarks continued to gain amid consolidation, especially ahead of outcome of monetary policy committee that will be announced on Wednesday.

Largely expectation of 25 basis points cut in repo rate seems already priced in. If RBI cuts repo rate by 50 basis points in total then the market may rally further, analysts feel.

Apart from that, the most important to watch out for would be commentary as it will be the first policy meet after currency demonetisation announced on November 8.

The 30-share BSE Sensex was up 106.17 points at 26455.27 and the 50-share NSE Nifty gained 34.35 points at 8163.10 while the broader markets climbed 0.8 percent each on positive breadth.

About three shares advanced for every share falling on the exchange.

HDFC, Infosys, L&T, Adani Ports, ONGC and Maruti were leading contributors to Sensex's gain while ITC, HUL and Asian Paints were under pressure, down 0.8 percent each.

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First Published on Dec 6, 2016 10:00 am
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