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Construction stocks advance

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Capital Market
Last Updated : Oct 24 2017 | 3:13 PM IST

Key benchmark indices were trading with small gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex gained 63.91 points or 0.2% at 32,570.63. The Nifty 50 index rose 17.55 points or 0.17% at 10,202.40. Firmness in most global stocks supported gains on the bourses.

Market edged higher in early trade on firm Asian stocks. Stocks extended gains in morning trade. Indices traded with modest gains in a range-bound manner till afternoon trade. Indices regained strength after slipping into the red for a brief period in mid-afternoon trade.

The S&P BSE Mid-Cap index rose 0.16%, underperforming the Sensex. The S&P BSE Small-Cap index advanced 0.62%, outperforming the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,435 shares rose and 1,221 shares declined. A total of 140 shares were unchanged.

Construction stocks gained after reports suggested that in its efforts to give spending push to infra sector and create more jobs, the Union Cabinet approved mega highway plan to develop about 83,000 kilometers of roads at an investment of Rs 6.9 lakh crore in next 5 years. Jaiprakash Associates (up 1.59%), Hindustan Construction Company (up 4.17%), NCC (up 6.29%), IRB Infrastructure & Developers (up 1.53%), GVK Power Infrastructure (up 4.96%), Unity Infraprojects (up 20%), and Lanco Infratech (up 2.41%) gained. L&T declined 0.18%.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 1.1%), Ashok Leyland (down 0.27%), Hero MotoCorp (down 0.09%), Tata Motors (down 1.4%) and Bajaj Auto (down 0.04%) declined. Maruti Suzuki India (up 0.98%), Eicher Motors (up 0.7%), and TVS Motor Company (up 1.09%) gained.

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Kaya rose 2.11% after the company said that its board of directors at its meeting held yesterday, 23 October 2017 had approved investment of an amount not exceeding Rs 51 crore in KME Holdings Pte. (KMEH), a wholly owned subsidiary of the company in Singapore for buyout of minority stake in Kaya Middle East FZC, subsidiary of KMEH situated at UAE. The announcement was made after market hours yesterday, 23 October 2017.

Ramco Systems jumped 11.41% after the company announced that it has won a multi-million dollar Payroll Transformation order from one of the FTSE 100 constituent and British Multinational Banking & Financial Services company. Ramco will enable the banking, financial services and insurance (BFSI) major in consolidating its multi-country payroll on a unified platform and provide managed payroll services for its associates spread across 14 countries. The announcement was made during trading hours today, 24 October 2017.

Overseas, most European stocks rose as investors continued to monitor the latest corporate earnings reports and kept a close eye on Spain's constitutional crisis. Spain's central government took the unprecedented step of firing the government of Catalonia on Saturday, 21 October 2017, in a last-ditch effort to prevent the restive region's push for independence. In response, Catalan separatist leaders called for mass civil disobedience.

Eurozone consumers continued to gain confidence in October. The European Commission said its monthly measure of sentiment rose to minus 1.0 from minus 1.2 in September, its highest level since April 2001.

Private sector growth across the euro zone slowed more sharply than predicted this month, a survey showed. IHS Markit's euro zone Flash Composite Purchasing Managers' Index for October, seen as a good guide to economic growth, fell to 55.9 from September's 56.7, still comfortably above the 50 level that separates growth from contraction.

Most Asian stocks shrugged off overnight declines in the US stocks, where a gauge of equity volatility climbed as market participants assessed the recent rally in global stocks before a slew of earnings reports. China's ruling Communist Party approved an amendment to its constitution directly mentioning Chinese President Xi Jinping's name and his Xi Jinping Thought on Socialism with Chinese Characteristcs for a New Era.

Japanese manufacturing activity expanded in October at a slower pace than the previous month, a preliminary gauge of activity showed. The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.5 in October from a final reading of 52.9 in September.

US stocks began the week with losses yesterday, 23 October 2017 as industrial and technology companies and retailers all stumbled. The Chicago Fed national activity index for September improved to 0.17 in September from negative 0.37 in August.

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First Published: Oct 24 2017 | 2:18 PM IST

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