After a positive opening on higher global stocks, key benchmark indices trimmed intraday gains in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex was up 156.88 points or 0.46% at 34,352.62. The Nifty 50 index advanced 56.30 points or 0.54% at 10,554.55.
India's stock market registered losses for the six straight trading sessions till yesterday, 6 February 2018, weighed down by a combination of domestic and global factors.
The introduction of the long term capital gains (LTCG) tax on equities exceeding Rs 1 lakh at 10% in the Budget 2018, worries of higher retail inflation and subsequent hike in interest rates by the central bank going forward amid slipping fiscal targets, increase in minimum support prices (MSPs) for agriculture crops, rising global crude oil and commodity prices coupled with the concerns of inflation going northwards in the advanced economies like US, especially after a stronger-than-expected jobs report from US for the month of January, whacked investors' sentiment across the globe.
Back to today's trade, among secondary indices, the S&P BSE Mid-Cap index advanced 1.22%. The S&P BSE Small-Cap index rose 2.34%. Both these indices outperformed the Sensex.
Overseas, Asian stocks edged higher after positive closing on Wall Street. US stocks closed on a higher note yesterday, 6 February 2018, albeit with wild swings witnessed during the day's trading, after two huge sell-offs in a row. The wild moves were attributed to a combination of factors like interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.
Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,938 shares rose and 331 shares declined. A total of 70 shares were unchanged.
Auto stocks nudged higher. Ashok Leyland (up 3.31%), Tata Motors (up 2.55%), TVS Motor Company (up 1.76%), Maruti Suzuki India (up 1.23%), Bajaj Auto (up 0.82%) and Mahindra & Mahindra (up 0.7%) edged higher.
Hero MotoCorp advanced 1.42% after net profit rose 4.3% to Rs 805.43 crore on 14.8% growth in net sales to Rs 7305.49 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 6 February 2018.
Hero MotoCorp's chairman, managing director and chief executive officer, Pawan Munjal, said that the company grew on all key performance parameters including revenue, PAT and earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter, bucking the severe headwinds on the commodities front. With an enhanced focus on the premium segment and scooters, the company is confident of carrying the growth momentum forward, Munjal added.
Eicher Motors was up 1.13% ahead of Q3 December 2017 results today, 7 February 2018.
Shares of telecom and telecom related infrastructure providers gained. Mahanagar Telephone Nigam (up 3.22%), Reliance Communications (up 3.05%), Idea Cellular (up 1.12%) and Bharti Infratel (up 0.49%) edged higher.
Bharti Airtel was down 0.1%. With respect to news article appearing in media titled "SC issues notice to Bharti Airtel, Vodafone, Idea on CCI's challenge", Bharti Airtel said that the media report deals with the developments in a special leave petition (SLP) filed by Competition Commission of India (CCI) in Supreme Court against an order of Bombay High Court which had quashed an order passed by CCI. The Supreme Court has issued notice and scheduled the next hearing on 19 February 2018, Airtel added. The announcement was made after market hours yesterday, 6 February 2018.
Bajaj Electricals rose 4.07% after the company announced that its engineering & project business unit has bagged a power distribution project worth $4.12 million, under Lusaka Transmission Distribution Rehabilitation Project (LTDRP) funded by World Bank & European Investment Bank. With this order win, the company got entry in the African markets. The announcement was made after market hours yesterday, 6 February 2018.
On the macro front, the Reserve Bank of India's (RBI) two-day Monetary Policy Committee (MPC) meeting concludes later today, 7 February 2018 for the sixth bi-monthly monetary policy statement for 2017-18. The central bank is likely to keep its policy rate on hold, but could toughen its warnings against inflation. The MPC is expected to tilt towards a hawkish tone from its neutral tone following higher fiscal targets, oil price increases and higher minimum support prices (MSP) for crops.
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