After an intraday rally, stocks trimmed gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 301.83 points or 0.83% at 36,567.76. The Nifty 50 index was up 85.95 points or 0.79% at 11,034.25. Realty stocks declined. An overnight slump in crude oil prices and positive global stocks boosted sentiment on the domestic bourses.
Oil prices dropped sharply on Wednesday on news that Libya was suddenly set to restore hundreds of thousands of barrels per day, and the US struck a softer line on Iran sanctions.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. In the global commodities markets, Brent for September 2018 settlement was up $1.45 at $74.85 a barrel. The contract had fallen $5.46 a barrel or 6.92% to settle at $73.40 a barrel during the previous trading session.
The Nifty moved above the psychological 11,000 mark in opening trade as domestic stocks saw an upbeat start on positive Asian stocks. Stocks extended gains in morning, and mid-morning trade. Strong buying frenzy in index heavyweights propelled the key benchmark indices to fresh intraday high in early afternoon trade, with the Sensex hitting fresh record high. Stocks held firm in afternoon trade.
The barometer index, the S&P BSE Sensex, was up 301.83 points or 0.83% at 36,567.76. The index hit high of 36,699.53 in early afternoon trade, also its record high. The index hit intraday low of 36,422.08.
The Nifty 50 index was up 85.95 points or 0.79% at 11,034.25. The index hit high of 11,078.30 and low of 10,999.65 so far during the day.
The S&P BSE Mid-Cap index was off 0.53%. The S&P BSE Small-Cap index was off 0.2%. Both these indices underperformed the Sensex.
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The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. On the BSE, 1113 shares rose and 1422 shares fell. A total of 143 shares were unchanged.
Realty stocks declined. DLF (down 2.06%), Indiabulls Real Estate (down 2.47%), Housing Development and Infrastructure (down 0.25%), D B Realty (down 1.42%), Unitech (down 0.24%), Godrej Properties (down 0.87%), Prestige Estates Projects (down 0.36%) and Oberoi Realty (down 2.32%) fell. Sobha (up 0.66%) rose.
Omaxe rose 1.44% after the company said it has executed a concession agreement with North Delhi Municipal Corporation (North DMC) on 10 July 2018 for the redevelopment/reconstruction of multi level car parking at Gandhi Maidan, Delhi. The announcement was made after market hours yesterday, 11 July 2018.
Satin Creditcare Network lost 2.91%. The company said its board approved the proposed transfer of the company's MSME business to wholly-owned subsidiary (WOS) upon its incorporation and registration of such WOS as a non-banking financial company with Reserve Bank of India. Incorporation of the wholly owned subsidiary of the company, subject to necessary approvals. Further, the board also approved acquisition of 11.05 lakh equity shares of Taraashna Services (a subsidiary of Satin Creditcare Network) by the company from MV Mauritius (an existing shareholder of Taraashna Services) that would result in Taraashna Services becoming a wholly owned subsidiary of the company. The announcement was made after market hours yesterday, 11 July 2018.
On the macro front, the government will after market hours today, 12 July 2018 announce industrial production data for May 2018. India's industrial output grew 4.9% year-on-year in April 2018, following an upwardly revised 4.6% advance in the previous month.
Overseas, shares in Europe and Asia edged higher, despite lingering concerns around the US and Chinese trade war that show little sign of abating. US stocks fell yesterday, 11 July 2018 after the Trump administration announced new tariffs on Chinese goods, further escalating tensions between the two largest economies in the world.
The White House late Tuesday said it would assess 10% tariffs on a further $200 billion in Chinese goods. The US last week hit Beijing with levies on $34 billion in goods, and Beijing retaliated with tariffs of the same amount. A final decision on the products to be hit with the new tariffs is reportedly expected after a consultation period in late August.
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