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Indices trading on a firm note

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Capital Market
Last Updated : Aug 28 2018 | 1:50 PM IST

Firmness prevailed on the bourses in afternoon trade on sustained demand in index pivotals. At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 190.60 points or 0.49% at 38,884.71. The Nifty 50 index was up 51.35 points or 0.44% at 11,743.30. Both Sensex and Nifty were hovering near their all-time highs hit in early trade.

Among secondary barometers back home, the BSE Mid-Cap index was off 0.04%, underperforming the Sensex. The BSE Small-Cap index was up 0.57%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1189 shares rose and 1359 shares fell. A total of 164 shares were unchanged.

Vedanta (up 2.13%), NTPC (up 2.05%), Reliance Industries (up 1.93%), Maruti Suzuki India (up 1.66%) and Coal India (up 1.38%) edged higher from the Sensex pack.

Yes Bank (down 3.24%), SBI (down 1.3%), Bajaj Auto (down 0.61%), Bharti Airtel (down 0.49%) and Wipro (down 0.47%) edged lower from the Sensex pack.

Jet Airways (India) rose 2.26% after the company declared its Q1 June 2018 result after market hours yesterday, 27 August 2018. Jet Airways (India) reported net loss of Rs 1323 crore in Q1 June 2018 as compared to net profit of Rs 53.50 crore in Q1 June 2017. Total income rose 1.9% to Rs 6066.91 crore in Q1 June 2018 over Q1 June 2017.

Macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways' performance in the quarter. Significantly, the board also considered various cost cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets including the company's stake in its loyalty programme.

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Overseas, European shares rose after the United States and Mexico reached a trade agreement. Shares in Asia advanced amid hopes global tariff tensions were abating as the United States and Mexico made a deal to overhaul the North American Free Trade Agreement. US stocks gained Monday, with the S&P 500 and the Nasdaq closing at records for a second straight session, as the market rallied on enthusiasm over a new trade deal between the US and Mexico.

On Monday, the United States and Mexico announced that a deal had been agreed upon after months of negotiations between the two countries over the future of the North American Free Trade Agreement. The new deal, which President Donald Trump has said would be called The United States-Mexico Trade Agreement, is expected to last 16 years and will be reviewed every six years pending its approval by Congress, according to US Trade Representative Robert Lighthizer.

On the US data front, a measure of the US economy from the Chicago Federal Reserve slowed in July from June's robust performance, owed in large part to lighter output at the nation's factories. The Chicago Fed's index of national economic activity registered at a positive 0.13 last month, down from an upwardly revised positive 0.48 in June.

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First Published: Aug 28 2018 | 1:30 PM IST

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