The stock market closed the session with modest gains on strong recovery in key benchmark indices in the last 30 minutes of trading. The barometer index, the S&P BSE Sensex, advanced 212.29 points or 0.64% at 33,265.33, as per the provisional closing data. The Nifty 50 index rose 71.45 points or 0.7% at 10,264.40, as per the provisional closing data. The Sensex closed well past the 33,000 level after skidding below that level in intraday trade.
After a positive start, key indices traded within a narrow range around the flat line till morning trade. Indices recovered sharply after hitting fresh intraday low in early afternoon trade. Investors digested the US Federal Reserve's decision of raising interest rates for the third time this year, underlining the confidence that the United States remains on solid footing.
Caution prevailed in markets for the larger part of trading session ahead of exit poll results of the assembly elections in Gujarat and Himachal Pradesh later in the day.
The Sensex rose 268.48 points, or 0.81%, at the day's high of 33,321.52 in late trade. The index fell 166.11 points, or 0.5%, at the day's low of 32,886.93 in afternoon trade, its lowest level since 7 December 2017. The Nifty advanced 83.15 points, or 0.81%, at the day's high of 10,276.10 in late trade. The index lost 51.40 points, or 0.5%, at the day's low of 10,141.55 in afternoon trade, its lowest level since 7 December 2017.
Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.09%. The S&P BSE Small-Cap index provisionally declined 0.32%. Both the indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,528 shares declined and 1,095 shares rose. A total of 164 shares were unchanged.
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The total turnover on BSE amounted to Rs 3581.60 crore, lower than turnover of Rs 4876.24 crore registered during the previous trading session.
Stocks of public sector oil marketing companies (PSU OMCs) rose. BPCL (up 1.78%), HPCL (up 3.12%) and IOCL (up 2.31%) gained.
Index heavyweight and cigarette major ITC advanced 1.93% at Rs 264.05.
Private sector banking major HDFC Bank rose 1% at Rs 1,840.
IT major TCS dropped 2.63% at Rs 2,558.10. The stock was the biggest loser among the 30-share Sensex pack.
Mahindra & Mahindra (M&M) was up 1.24% at Rs 1,430 after wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) (MOICML) on 13 December 2017, sold 64.50 lakh shares, representing 5% of the share capital of CIE Automotive S.A. The Spanish company is listed on the Madrid and Bilbao Stock Exchanges. The average gross price was Euro 23.50 per share. The deal totalled Euro 151.58 million.
The sale has been executed on the stock exchange. Following the sale, MOICML's shareholding in CIE Automotive S.A. would come down to 7.435% of its share capital. This transaction will facilitate diversification of Investor base of CIE Automotive S.A.
MOICML would utilize the sale proceeds, inter alia, for part re-payment of MOICML's debt and/or for declaration of dividend or for any other purpose, as may be decided by the board of MOICML. The announcement was made after market hours yesterday, 13 December 2017.
On the macro front, India's inflation based on the wholesale price index (WPI), stood at 3.93% for the month of November 2017 as compared to 3.59% for the previous month and 1.82% during the corresponding month of the previous year. The inflation data was released by the government during market hours today, 14 December 2017.
Among other news, the second phase of polling in Gujarat is underway today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.
Overseas, European stocks edged lower ahead of the European Central Bank (ECB) meeting today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of 30 billion from January with the option of extending it in September 2018.
Most Asian stocks declined. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.
The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.
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