The stock indices clocked decent gains as firmness in most global stocks supported gains on the domestic bourses. The barometer index, the S&P BSE Sensex, gained 240.19 points or 0.71% at 33,841.87, as per the provisional closing data. The Nifty 50 index rose 76.65 points or 0.74% at 10,465.40, as per the provisional closing data. Key indices gained for the fourth straight day. The Sensex and Nifty, both, hit highest level in six-weeks in late trade.
Indices extended gains after assembly election results of Gujarat and Himachal Pradesh yesterday, 18 December 2017, showed that ruling BJP party at the centre will form the next government in both the states. BJP won majority in both the states, winning 99 out of 182 seats in Gujarat and 44 out of 68 seats in Himachal Pradesh. Having won elections in Gujarat, the home state of Prime Minister Narendra Modi, the BJP party has cemented its dominance in Indian politics and has improved its chances in next general elections in 2019.
The market opened higher and traded with modest gains till mid-afternoon trade. Buying momentum picked up pace in late trade, as stocks extended gains and hit fresh intraday high.
The Sensex gained 260.39 points or 0.77% at the day's high of 33,862.07 in late trade, its highest level since 7 November 2017. The index rose 64.94 points or 0.19% at the day's low of 33,666.62 in early trade. The Nifty gained 83.45 points or 0.8% at the day's high of 10,472.20 in late trade, its highest level since 7 November 2017. The index rose 17.25 points or 0.17% at the day's low of 10,406 in early trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 1.47%. The S&P BSE Small-Cap index provisionally gained 1.51%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,867 shares rose and 811 shares fell. A total of 165 shares were unchanged.
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Auto stocks extended recent gains. Mahindra & Mahindra (M&M) (up 1.85%), Ashok Leyland (up 3.42%), Maruti Suzuki India (up 5.82%), Eicher Motors (up 1.74%), Bajaj Auto (up 2.8%), Hero MotoCorp (up 4.51%), Tata Motors (up 3.56%) and TVS Motor Company (up 2.61%) gained.
KEC International jumped 6.91% after the company said it secured new orders worth Rs 2424 crore across all its business units. The announcement was made during trading hours today, 19 December 2017.
Steel Strips Wheels rose 2.81% after the company said that it has bagged a repeat exports order from Europe. Total order size is 30,000 wheels, which is to be dispatched from the company's new truck wheels plant in Chennai from next month onwards. Order size is valued close to 1.2 million euros.
SSWL said it is in touch with other large trailer makers in European territory and expects to get more orders in this segment in near future. SSWL expects to increase its presence in truck and trailer wheels market in European Union (EU) and US in the coming months. The announcement was made during trading hours today, 19 December 2017.
In the ongoing winter session of the Parliament, finance minister Arun Jaitley, responding to a query from P. Chidambaram on GST, reportedly said that the centre would await consensus of the states and hopes that states agree to the consensus sooner or later with respect to bringing petroleum products under the ambit of the Goods and Services Tax (GST).
Overseas, most European stocks gained and Asian stocks were mixed after a record-setting session on Wall Street on bets that US lawmakers would pass sweeping tax legislation.
Among economic news, German business confidence fell unexpectedly in December after hitting an all-time high in the previous month, a survey showed. The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms, edged down to 117.2 from an upwardly revised reading of 117.6 in November which was the highest on record.
Japan's government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9% and 1.8% respectively on the back of steady improvement in domestic demand, the Cabinet Office said.
US stocks closed at all-time highs yesterday, 18 December 2017, as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.
Congress is reportedly expected to vote as early as today, 19 December 2017, on a plan that would slash the federal corporate tax rate to 21% from 35%. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the US tax code for most of 2017.
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