Key benchmark indices settled with minor gains after a volatile trading session. The barometer index, the S&P BSE Sensex, rose 24.57 points or 0.08% to 31,795.46, as per the provisional closing data. The Nifty 50 index rose 5.60 points or 0.06% to 9,902.90, as per the provisional closing data.
The Sensex and the Nifty reversed trend in mid-morning trade after hitting their highest levels in more than a week in morning trade. Both the indices bounced back in early afternoon trade. Recovery, however, proved short lived as key indices wiped off almost all gains in late trade.
The Sensex rose 166.62 points, or 0.52% at the day's high of 31,937.51 in morning trade, its highest level since 9 August 2017. The index fell 56.79 points, or 0.18% at the day's low of 31714.10 in early afternoon trade. The Nifty rose 50.50 points, or 0.51% at the day's high of 9,947.80 in morning trade, its highest level since 9 August 2017. The index fell 13.55 points, or 0.13% at the day's low of 9,883.75 in early afternoon trade.
Among other key indices, the S&P BSE Mid-Cap index provisionally fell 0.35%, underperforming the Sensex. The S&P BSE Small-Cap index provisionally rose 0.54%, outperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On BSE, 1,400 shares rose and 1,161 shares fell. A total of 139 shares were unchanged.
The total turnover on BSE amounted to Rs 3225.46 crore, lower than turnover of Rs 4401.84 crore registered during the previous trading session.
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FMCG shares declined. Tata Global Beverages (down 1.71%), GlaxoSmithKline Consumer Healthcare (down 1.56%), Jyothy Laboratories (down 1.5%), Britannia Industries (down 1.21%), Bajaj Corp (down 1.2%), Hindustan Unilever (down 0.91%), Colgate Palmolive (India) (down 0.68%), Godrej Consumer Products (down 0.46%), Dabur India (down 0.31%) and Nestle India (down 0.31%), edged lower. Procter & Gamble Hygiene & Health Care (up 0.38%) and Marico (up 0.79%), edged higher.
Power Grid Corporation of India fell 0.54% to Rs 219.45. The company announced during trading hours today, 17 August 2017, that its board approved raising rupee term loan of up to Rs 3270 crore from ICICI Bank. The baord also approved investment for HVDC bipole link at estimated cost of Rs 1931 crore.
Reliance Industries (RIL) was up 0.07% to Rs 1,568. With reference to news item titled, "Govt slaps Rs.1,700-cr penalty on RIL, BP" and media report titled, "$264 m penalty slapped on RIL", RIL clarified during trading hours today, 17 August 2017, that it has not received any notice from the government regarding penalty in the recent past. The details contained in media reports of 16 August 2017 seems to have been taken from the last notice of 3 November 2016 received from the Government for which company has already made appropriate disclosures.
In any event, all related claims/disputes relating to Block KG-D6 are currently in arbitration. Further, all these claims have been adequately covered under financial disclosures. RIL maintained that in carrying out petroleum operations, the contractor has complied with all the applicable regulations and provisions of the production sharing contract.
Engineering and construction major Larsen & Toubro (L&T) fell 0.75% to Rs 1,133.10. The company announced during trading hours today, 17 August 2017, that it delivered two more High Speed Interceptor Ships (C-433 and C-434) to Indian Coast Guard at the company's Kattupalli Shipyard, near Chennai, seven months ahead of contractual schedule. This is part of the two contracts being executed by L&T for design and construction of 54 Interceptors to Indian Coast Guard, valued at Rs 1424 crore. L&T had won the order against Global competition. With these two, 34 Interceptors have been delivered by the company, so far.
L&T announced after market hours yesterday, 16 August 2017, that it entered into definitive agreement for the divestment of its entire stake in L&T Cutting Tools, a wholly-owned subsidiary, with IMC International Metalworking Companies B.V, a company owned by Berkshire Hathaway Inc.
GMR Infrastructure rallied 13.41% to Rs 18.60 after report suggested that Supreme Court upheld an order by the Delhi High Court allowing it to use land at Delhi airport for non-aviation or commercial purposes. The Supreme Court reportedly upheld an order by the Delhi High Court which allowed GMR Infrastructure to use land at Delhi airport for non-aviation or commercial purposes. A government policy in 2016 had barred airports from using such land for non-aeronautical purposes. GMR Infra now holds 54% stake in Delhi International Airport (DIAL). Investors saw this order as a positive move for the company's financials, report added.
Overseas, European stocks edged lower as banks fell following a set of cautious minutes from the US Federal Reserve, and energy stocks also weighed on a busy day for company results. Asian stocks witnessed a mixed trend.
In economic news, Japanese exports rose 13.4% in July from a year ago, helped by exports of cars and automotive components. It was the eighth straight monthly gain in exports, data from Japan's Ministry of Finance showed today, 17 August 2017.
In US, shares closed slightly higher on Wednesday, 16 August 2017, but backlash from the business community against President Donald Trump kept gains in check. US President Donald Trump unexpectedly said on Wednesday, 16 August 2017, he was disbanding two advisory councils comprising prominent business executives. The move came after several members of Trump's Strategic and Policy Forum and Manufacturing Jobs Initiative councils stepped down following the president's Tuesday press conference in which the president blamed "both sides" for violence at a white nationalist rally in Virginia.
Meanwhile, minutes from the Federal Open Market Committee's July meeting released on Wednesday, 16 August 2017, showed that while some Fed members said they were worried over the tightening labor market, others voiced their concern over low inflation rates in the US. The minutes also showed the central bank was prepared to trim its massive balance sheet, although the announcement of a start date was left for an upcoming meeting.
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