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Market jumps on broad-based buying

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Capital Market
Last Updated : Dec 08 2017 | 3:50 PM IST

Key benchmark indices spurted on broad-based buying support. The barometer index, the S&P BSE Sensex, rose 301.09 points or 0.91% to 33,250.30, as per the provisional closing data. The Nifty 50 index rose 98.95 points or 0.97% to 10,265.65, as per the provisional closing data.

The buying momentum was backed by hopes that the ruling Bharatiya Janata Party (BJP) would win critical state elections in Gujarat beginning this weekend. The election in Prime Minister Narendra Modi's home state is a key test for the BJP, ahead of general elections in 2019. The Gujarat Assembly Elections 2017 will take place in two phases on 9 December 2017 and 14 December 2017. Counting of votes will take place on 18 December 2017.

Positive global stocks also boosted sentiments. The Sensex opened above the psychologically important 33,000 mark and extended gains as the session progressed. The Sensex and the Nifty, both, hit 1-week highs in mid-afternoon trade.

The Sensex rose 336.47 points, or 1.02% at the day's high of 33,285.68 in mid-afternoon trade, its highest intraday level since 1 December 2017. The index rose 84.99 points, or 0.26% at the day's low of 33,034.20 at the onset of trading session. The Nifty rose 104.15 points, or 1.02% at the day's high of 10,270.85 in mid-afternoon trade, its highest intraday level since 1 December 2017. The index rose 28.55 points, or 0.28% at the day's low of 10,195.25 at the onset of trading session.

Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.89%, underperforming the Sensex. The BSE Small-Cap index provisionally rose 1%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,571 shares rose and 1,121 shares fell. A total of 156 shares were unchanged.

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The total turnover on BSE amounted to Rs 5311.29 crore, higher than turnover of Rs 3898 crore registered during the previous trading session.

Metal and mining stocks edged higher after data showed a jump in imports of the copper into China, the world's top consumer of the commodity. Steel Authority of India (up 4%), Vedanta (up 1.89%), National Aluminium Company (up 1.55%), Hindustan Zinc (up 1.41%), Tata Steel (up 1.32%), Jindal Steel & Power (up 1.23%), NMDC (up 1.08%), Hindustan Copper (up 1.05%), Hindalco Industries (up 1.05%), JSW Steel (up 0.78%) and Bhushan Steel (up 0.30%), edged higher.

According to reports, China's unwrought copper imports rose by more than 40% in November from the previous month, in a sign that winter production restrictions at the world's top copper consuming country are driving up shipments of overseas metal.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 0.35% at $2.9750 per pound on the COMEX.

Tata Motors gained 2.24% after the company said that the Tata Motors Group global wholesales, including Jaguar Land Rover, rose 22% at 1,12,473 units in November 2017 over November 2016. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range jumped 51% at 40,845 units in November 2017 over November 2016. Global wholesales of all passenger vehicles grew 10% at 71,628 units in November 2017 over November 2016. The announcement was made during market hours today, 8 December 2017.

Index heavyweight Reliance Industries fell 1.09%. The company announced during trading hours today, 8 December 2017, that it acquired stake in a newly incorporated entity viz Dreketi S.A. in Uruguay (hereinafter called 'Dreketi') and consequentially Dreketi has become wholly-owned subsidiary of the company. Currently, Dreketi is not engaged in any business activity. This is a part of company's plan to strengthen its marketing efforts in Latin American region.

Overseas, European markets were trading higher as investors reacted to the latest news surrounding Brexit negotiations.

UK and European negotiators finally agreed on three key issues that were blocking Brexit talks, paving the way for the next phase of discussion between the two sides. After six months of intense talks, a settlement has been reached on how much the U.K. will pay before it leaves the Union, on citizens' rights and on the Irish border. Negotiators are now set to move to phase two of Brexit discussing trade arrangements.

Asian stocks were trading higher following a broad-based rally in US equities. Japan's economy grew at a much faster pace than initially estimated in the July-September quarter. The nation's gross domestic product grew at an annualized pace of 2.5% from the previous three months, according to government data released Friday.

China's exports and imports unexpectedly accelerated last month in an encouraging sign for the world's second-biggest economy. Exports in November rose 12.3% year-on-year, the fastest pace in eight months, led by strong sales of electronics and high-tech goods, while commodity purchases helped lift imports. Imports grew 17.7% year-on-year in November, the General Administration of Customs said on Friday.

US stocks closed higher Thursday, with the S&P 500 snapping a four-session losing streak on the back of gains in the technology, industrials and materials sectors. The S&P 500 index rose 0.29%, while the Dow Jones Industrial Average added 0.29%, to 24,211.48. The tech-heavy Nasdaq Composite Index rose 0.54%.

Traders looked ahead to the monthly jobs report due Friday. Initial US jobless claims, a way to measure layoffs, fell by 2,000 to 236,000 in the seven days ended 2 December 2017.

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First Published: Dec 08 2017 | 3:33 PM IST

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