Key indices continued to trade firm and were hovering close to intraday highs in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 447.24 points or 1.31% at 34,529.98. The Nifty 50 index advanced 127.70 points or 1.22% at 10,604.40. Bargain hunting emerged on the bourses after seven straight sessions of losses.
Key indices opened on a higher note and extended gains so far as bargain hunting emerged after seven straight sessions of sell-off in the domestic equities in the wake of a combination of domestic and global factors. Lesser hawkish stance of the Reserve Bank of India (RBI) in its monetary policy meeting concluded yesterday, 7 February 2018 also supported the gains on the bourses. The central bank had kept key policy rates on hold, reiterating its intention to keep an eye on the inflation figures going forward and to support growth.
Earlier, the key indices had declined for seven sessions in a row after the Government announced re-introduction of long term capital gains (LTCG) tax on equities exceeding Rs 1 lakh at 10% in Budget 2018, surging interest rates on sovereign debt in US, and amid rising global crude oil and commodity prices.
Among secondary indices, the S&P BSE Mid-Cap index rose 1.8%. The S&P BSE Small-Cap index advanced 2.41%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was quite strong. There were more than four gainers for every loser. On the BSE, 2,156 shares advanced and 508 shares declined. A total of 112 shares were unchanged.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 4.31%), BEML (up 1.88%), Havells India (up 2.78%), ABB India (up 1.03%), L&T (up 1.53%), Thermax (up 2.57%), and Siemens (up 1.48%) gained.
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Auto stocks rose across the board. Mahindra & Mahindra (M&M) (up 1.38%), Ashok Leyland (up 1.99%), Eicher Motors (up 0.89%), Bajaj Auto (up 0.96%), Hero MotoCorp (up 0.97%), Tata Motors (up 0.19%) and TVS Motor Company (up 1.25%) gained.
Maruti Suzuki India rose 1.41% after the company today, 8 February 2018, launched the third generation of its iconic and blockbuster brand - Swift. The petrol variant prices of car range from Rs 4.99 lakh to Rs 6.96 lakh, while diesel variants range from Rs 5.99 lakh to Rs 7.96 lakh ex-showroom Delhi. The announcement was made during market hours today, 8 February 2018.
Reliance Industries rose 1.62% after Jio TV, India's popular TV app with millions of users, announced that it has been awarded India digital rights of the Olympic Winter Games PyeongChang 2018 by the International Olympic Committee (IOC). JioTV will work with IOC to provide comprehensive coverage of the Games in India, thus enabling millions to access live and catch-up content on their mobile devices, on the move.
The Olympic Winter Games are scheduled from 9-25 February 2018 at PyeongChang County, South Korea. Featuring 102 events in 15 sports including Skiing, Skating, Luge, Ski Jumping, Ice Hockey, Snow Boarding, etc., the Games will see participation from more than 90 countries, including India. The announcement was made during market hours today, 8 February 2018. Reliance Jio Infocomm is a subsidiary of RIL.
GE T&D India surged 5.78% after net profit jumped 61.97% to Rs 71.77 crore on 27.11% increase in total income to Rs 1543.65 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 7 February 2018.
Bharat Forge gained 5.65% after net profit spurted 77.4% to Rs 228.17 crore on 47.4% rise in total revenues to Rs 1390.55 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 8 February 2018.
Separately, company announced strategic investment of upto Rs 30 crore for eventual stake of 45% in an EV startup, Tork Motorcycles. The investment is a part of its overall E-Mobility powertrain development.
On the macro front, the Reserve Bank of India (RBI), in a notification dated 7 February 2018, announced relief measures for micro, small and medium enterprises (MSMEs) registered under Goods and Services Tax (GST). Presently, banks and non-banking finance companies (NBFCs) in India generally classify a loan account as non-performing asset (NPA) based on 90 day and 120 day delinquency norms, respectively. The formalisation of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and NBFCs.
As a measure of support to these entities in their transition to a formalised business environment, it has been decided that the exposure of banks and NBFCs to a borrower classified as MSME under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, shall continue to be classified as a standard asset in the books of banks and NBFCs, subject to a set of conditions, the central bank said.
Overseas, Asian stocks were mixed. China's trade surplus shrank in January on huge imports surge, data released today, 8 February 2018 showed. Trade surplus for January, in Yuan terms, came in at CNY 135.80 billion.
US stocks declined yesterday, 7 February 2018, after trading in a wide range again, as interest rates climbed back toward multi-year highs.
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