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Market trims gains

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Last Updated : Jan 18 2018 | 2:50 PM IST

Stocks trimmed gains in mid-afternoon trade as profit booking emerged at higher levels. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 318.76 points or 0.91% at 35,400.58. The Nifty 50 index was up 68.25 points or 0.63% at 10,856.80. Gains were triggered on reports indicating that the government is mulling a proposal to hike foreign direct investment (FDI) limit in the banking sector. Positive global stocks also underpinned sentiment. The breadth, indicating the overall health of the market, was weak. Auto stocks saw mixed trend. Pharma shares declined.

Domestic stocks saw gap-up opening following positive Asian cues, with the Sensex and the Nifty scaling record high levels in intraday trade.

The S&P BSE Mid-Cap index was off 1.23%. The S&P BSE Small-Cap index dropped 1.12%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 2,043 shares declined and 823 shares rose. A total of 127 shares were unchanged.

Auto stocks saw mixed trend. TVS Motor Company (down 2.87%), Tata Motors (down 0.65%), Eicher Motors (down 0.68%), Escorts (down 2.34%) and Ashok Leyland (down 2.85%) declined. Maruti Suzuki India (up 1.64%), Mahindra & Mahindra (M&M) (up 2.28%), Bajaj Auto (up 0.6%) and Hero MotoCorp (up 0.47%) rose.

Pharma shares declined. Aurobindo Pharma (down 1.65%), Cadila Healthcare (down 0.44%), Cipla (down 0.61%), Dr Reddy's Laboratories (down 0.17%), Glenmark Pharmaceuticals (down 0.46%), Sun Pharmaceutical Industries (down 0.68%), Alkem Laboratories (down 0.73%) and GlaxoSmithKline Pharmaceuticals (down 0.07%) fell. Wockhardt (up 0.74%) and Lupin (up 0.32%) rose.

Ultratech Cement lost 3.15% after consolidated net profit fell 23.36% to Rs 456 crore on 33.24% increase in net sales to Rs 7897 crore in Q3 December 2017 over Q3 December 2016. The quarter witnessed increase in variable costs attributable to rise in pet coke and coal prices. The ban on pet coke usage in some states also adversely impacted performance, the company said in a statement. The result was announced during trading hours today, 18 January 2018.

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Ultratech Cement's consolidated profit before interest, depreciation & taxes (PBIDT) rose 16.72% to Rs 1494 crore in Q3 December 2017 over Q3 December 2016.

In its outlook, the company said that the expected higher budget allocation for infrastructure and rural development will be the key demand drivers.

Overseas, European stocks were trading higher in early trade. Asian stocks edged higher amid optimism over global growth prospects. In China, the National Bureau of Statistics announced today, 18 January 2018 that the economy had expanded 6.9% last year, up slightly from 6.7% in 2016 and breaking a trend of gradual slowing that had begun in 2011. For the fourth quarter, it reported growth of 6.8% over a year earlier.

Another data showed that China's industrial output picked up in December. Value-added industrial output, a rough proxy for economic growth, expanded 6.2% in December from a year earlier, compared with a 6.1% increase in November, the National Bureau of Statistics said.

US stocks rose to fresh highs yesterday, 17 January 2018 as companies continued to indicate the tax overhaul will boost earnings this year. The Dow Jones Industrial Average staged a late rally to end above 26,000 for the first time ever.

The Fed's Beige Book indicted that the outlook for 2018 remains optimistic for a majority of contacts across the country. As for the much vaunted tax cuts, only businesses in Chicago and Dallas were excited over the Republican tax plan, while districts along the East Coast were worried about higher taxes from the new limits on deductions for mortgage interest and property and state income taxes, reports indicated.

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First Published: Jan 18 2018 | 2:27 PM IST

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