Key benchmark indices turned range bound in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 222.22 points or 0.69% at 32,404.44. The Nifty 50 index was up 65.40 points or 0.65% at 10,161.80.
Investors risk appetite improved on anticipation that a rise in industrial production and a steady inflation could increase pressure on the central bank to reduce interest rates to boost economic activity. Positive cues from the Asian market also boosted sentiment.
The Sensex and the Nifty, both, hit their highest intraday levels in more than three weeks in mid-morning trade. The Sensex rose 263 points, or 0.82% at the day's high of 32,445.22 in mid-morning trade, its highest intraday level since 21 September 2017. The index rose 65.52 points, or 0.20% at the day's low of 32,247.74 in early trade. The Nifty rose 72.35 points, or 0.72% at the day's high of 10,168.75 in mid-morning trade, its highest intraday level since 20 September 2017. The index rose 23.70 points, or 0.23% at the day's low of 10,120.10 in early trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.12%. The BSE Small-Cap index was up 0.51%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,425 shares rose and 1,067 shares fell. A total of 109 shares were unchanged. Breadth was strong in morning trade.
Most realty shares rose. D B Realty (up 3.23%), Oberoi Realty (up 2.99%), Sobha (up 2.78%), Peninsula Land (up 0.55%), Anant Raj (up 0.28%), Prestige Estates Projects (up 0.28%), Sunteck Realty (up 0.22%), Unitech (up 0.16%), Omaxe (up 0.12%), DLF (up 0.06%) and Godrej Properties (up 0.02%), edged higher. Housing Development and Infrastructure (HDIL) (down 0.18%), Mahindra Lifespace Developers (down 0.27%), Phoenix Mills (down 0.93%), Indiabulls Real Estate (down 1.73%) and Parsvnath Developers (down 2.86%), edged lower.
Auto shares were mixed. Escorts (up 2.33%), Tata Motors (up 1.68%), Hero MotoCorp (up 0.58%), TVS Motor Company (up 0.42%) and Bajaj Auto (up 0.36%), edged higher. Eicher Motors (down 0.04%), Maruti Suzuki India (down 0.23%), Ashok Leyland (down 0.28%) and Mahindra & Mahindra (down 0.46%), edged lower.
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Atul Auto rose 2.65% after Birla Sunlife Mutual Fund increased stake in the company via purchase of bulk shares. Goldman Sachs India sold 2.94 lakh shares of Atul Auto at Rs 463.05 per share in a bulk deal on the NSE yesterday, 12 October 2017. Birla Sunlife Mutual Fund bought 1.75 lakh shares at Rs 463 a piece. Birla Sunlife Trustee Company A/C Birla Sunlife Resurgent India Fund - Series 4 held 4.33% stake and Goldman Sachs India owned 3.25% in Atul Auto as per the shareholding pattern as on 30 September 2017.
On the macro front, India's industrial production grew 4.3% in August 2017 over August 2016, while showing sharp improvement in growth from 0.9% increase in July 2017. The manufacturing sectors production improved 3.1% in August 2017, snapping decline in output for last two straight months. The electricity generation increased at improved pace of 8.3% and mining output also gained 4.3% in August 2017. The growth for July 2017 has been revised downwards to 0.9% from 1.2% reported earlier. The data was unveiled after market hours yesterday, 12 October 2017.
The all-India general consumer price index (CPI) inflation was flat at 3.28% in September 2017 compared with 3.28% in August 2017, after rising for last two months from 1.5% in June 2017. The data was unveiled after market hours yesterday, 12 October 2017.
The Election Commission (EC) yesterday, 12 October 2017, announced elections in Himachal Pradesh, but held off on making an announcement for Gujarat. Voting for the 68-seat Himachal Pradesh assembly will take place on 9 November 2017 and the results will be declared on 18 December 2017. Gujarat polls, Chief Election Commissioner (CEC) A K Joti reportedly said, will be announced later, but he added voting will wind up before Himachal results are declared. While Gujarat Assembly's term ends on 22 January 2018, Himachal Pradesh's finishes on 7 January 2018. The EC normally holds elections together in states where the incumbent governments are completing their five-year term within six months. The poll dates for these states are announced simultaneously.
Overseas, Asian stocks were trading higher. Investors were cautious ahead of US and Chinese economic data as well as the Chinese Communist Party congress next week.
The US stock finished slightly lower on Thursday, even as Wall Street banks turned in generally upbeat results. The Dow Jones Industrial Average fell 0.14%. The S&P 500 shed 0.17%, while the Nasdaq Composite dropped 0.18%.
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