Key benchmark indices logged modest gains in a steady session of trade led by index pivotals TCS, ITC and HDFC. The barometer index, the S&P BSE Sensex, rose 141.27 points or 0.42% at 33,844.86, as per the provisional closing data. The Nifty 50 index rose 37.05 points or 0.36% at 10,397.45, as per the provisional closing data. Bargain hunting helped indices stage a comeback after prior three-day fall. IT stocks gained after Nasscom reportedly issued a cautiously optimistic outlook for the Indian IT sector.
Trading for the day began on a positive note as domestic stocks logged modest gains in early trade. Stocks trimmed gains in morning trade. Indices hovered in positive zone in mid-morning trade. They once again pared gains and were trading with small gains in afternoon trade after regaining some strength in early afternoon trade. Stocks traded with modest gains in afternoon and mid-afternoon trade. Stocks extended gains in late trade.
The Sensex gained 207.77 points or 0.62% at the day's high of 33,911.36. The index fell 1.09 points at the day's low of 33,702.50. The Nifty gained 65.70 points or 0.63% at the day's high of 10,426.10. The index fell 10.80 points or 0.1% at the day's low of 10,349.60.
The S&P BSE Mid-Cap index provisionally fell 0.05%. The S&P BSE Small-Cap index provisionally slipped 0.17%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,589 shares fell and 1,131 shares rose. A total of 150 shares were unchanged. Breadth was strong in early trade. It turned negative in morning trade. It remained weak during afternoon and mid-afternoon trade.
The total turnover on BSE amounted to Rs 3410.01 crore, lower than the turnover of Rs 3440.03 crore registered during the previous trading session.
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IT stocks gained after Nasscom reportedly issued a cautiously optimistic outlook for the Indian IT sector.
TCS (up 3.4%), Infosys (up 0.9%), Wipro (up 0.53%), HCL Technologies (up 4.12%), Oracle Financial Services Software (up 0.47%), Tech Mahindra (up 3.92%), MindTree (up 4.72%), L&T Infotech (up 5.64%), Hexaware Technologies (up 3.67%) and Mphasis (up 1.57%) rose.
The National Association of Software and Services (Nasscom), the industry body of the Indian IT and business process management (BPM) sector, yesterday, 20 February 2018 said the country's IT exports could grow between 7 and 9% in 2018-19. Domestic revenues may grow slightly higher at 10-12%, while exports, may lag in 2018-19.
L&T Technology Services rose 7.7% to Rs 1,365 on bargain hunting after a recent decline. Shares of L&T Technology Services slumped 14.40% in five trading sessions to settle at Rs 1,267.45 yesterday, 20 February 2018, from its close of Rs 1,480.65 on 12 February 2018.
Reliance Industries (RIL) rose 0.74%. Eros International Media (Eros India) gained 4.63%. RIL and Eros International PLC (Eros) announced on 20 February 2018 that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of $15 per share, which represents an 18% premium to last closing price. The transaction is subject to customary regulatory and other approvals. The announcement was made after market hours yesterday, 20 February 2018.
Furthermore, RIL and Eros India announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs 1000 crore in aggregate (approximately $150 million) to produce and acquire Indian films and digital originals across all languages.
Lupin fell 0.36%. Lupin announced that it has received final approval for its Oseltamivir Phosphate for Oral Suspension from the United States Food and Drug Administration (FDA) to market the generic version of Hoffman-La Roche, Inc.'s Tamiflu for Oral Suspension, 6 mg/mL. Lupin shall commence promoting the product shortly. Oseltamivir Phosphate for Oral Suspension, 6 mg (base)/mL had annual sales of approximately $358 million in the US (IQVIA MAT October 2017). The announcement was made during market hours today, 21 February 2018.
Overseas, European stocks fell ahead of the release of minutes from the US Federal Reserve's January meeting that could provide the first specific detail on interest rate hikes under new chairman Jerome Powell.
On the data front, Germany's private sector expanded strongly in February, although the pace of growth slowed from a near seven-year high seen in January, flash data from IHS Markit showed Wednesday. The composite output index dropped unexpectedly to a 3-month low of 57.4 in February from 59 in January.
France's private sector expanded at the slowest pace in four months in February. The composite output index fell to 57.8 in February from 59.6 in January.
Most Asian stocks rose in choppy trading. Markets in China remained closed for the Lunar New Year holiday and will reopen tomorrow, 22 February 2018.
Japanese manufacturing activity expanded at a slower pace in February as growth of new export orders slowed due to the yen's appreciation. The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 54 in February from a final 54.8 in January.
US stocks snapped a six-day winning streak yesterday, 20 February 2018 with the Dow and S&P 500 weighed down by a steep loss for Walmart as investors also watched climbing bond yields, which could make equities less attractive at current levels.
The US Federal Reserve will today, 21 February 2018 release minutes of its January 30-31 meeting, Janet Yellen's last as chair, where officials kept the rate unchanged.
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