Trading for the week began on a positive note as key benchmark indices provisionally settled with modest gains after what was a volatile trading session. Firmness in global stocks supported gains on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 118.33 points or 0.37% at 32,508.29, as per the provisional closing data. The Nifty 50 index gained 47 points or 0.46% at 10,193.55, as per the provisional closing data. The Sensex snapped three-day losing streak.
Market opened with small gains tracking firm Asian stocks and soon extended gains and hit fresh intraday high in early trade. Stocks pared gains in morning trade and later traded with small gains in mid-morning trade. Indices dropped into the red in early afternoon trade and hovered in the red in afternoon trade. Stocks once again regained positive terrain in mid-afternoon trade. Indices regained strength in late trade.
The Sensex gained 224.93 points or 0.69% at the day's high of 32,614.89 in early trade. The index fell 77.22 points or 0.23% at the day's low of 32,312.74 in early afternoon trade, its lowest level since 13 October 2017. The Nifty gained 77.60 points or 0.76% at the day's high of 10,224.15 in early trade, its highest level since 18 October 2017. The index fell 22.05 points or 0.21% at the day's low of 10,124.50 in early afternoon trade.
The S&P BSE Mid-Cap index provisionally rose 0.45%, outperforming the Sensex. The S&P BSE Small-Cap index provisionally gained 0.09%, underperforming the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,422 shares fell and 1,292 shares rose. A total of 138 shares were unchanged.
The total turnover on BSE amounted to Rs 3893.63 crore.
Telecom stocks surged after reports suggested that Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries has raised the tariffs. Bharti Airtel (up 4.9%), Tata Teleservices (Maharashtra) (up 4.86%) Reliance Communications (up 6.69%) MTNL (up 1.51%) and Idea Cellular (up 8.01%) gained.
Shares of Bharti Infratel fell 2.67%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
A global brokerage reportedly said that Jio's action implies a progressively normalisation of sector pricing". Jio's entry had sparked cutthroat competition in telecom sector, eroding profitability. Jio's most popular plan of Rs 399 with a three month validity (84 days) is now available for Rs 459 and subscribers who want to recharge with Rs 399 plan will have the pack available for a period of 70 days instead. The changes kicked in from 19 October 2017.
Bharat Heavy Electricals rose 1.95% after the company said that the execution of the 4,000 megawatts Yadadri Supercritical Thermal Power Project has commenced. The announcement was made during market hours today, 23 October 2017.
Bhel said that the execution of the 4,000 megawatts (MW) Yadadri Supercritical Thermal Power Project (TPP), ordered on the company by Telangana State Power Generation Corporation (TSGENCO), has commenced with the issuance of revised Letter of Intent (LoI) by TSGENCO. Valued at approximately Rs 20,400 crore, the order for Yadadri TPP, comprising five units of 800 MW supercritical sets, is not only the single-largest order for Bhel but also the highest value order ever placed in the power sector in India.
Zuari Agro Chemicals hit an upper circuit limit of 20% at Rs 591.40 on BSE after net profit surged 299.70% to Rs 53.52 crore on 24.22% rise in total revenue to Rs 1346.77 crore in Q2 September 2017 over Q2 September 2016. The result was announced during trading hours today, 23 October 2017.
On the macro front, some rejig in Goods and Services Tax (GST) rate structure is required to reduce the burden on small and medium businesses, revenue secretary Hasmukh Adhia has reportedly said. The GST, which amalgamates more than a dozen central and state levies like excise duty, service tax and VAT, will take about a year to stabilize, he reportedly said.
Overseas, European stocks rose as investors monitored fresh corporate earnings and awaited further developments of Spain's ongoing constitutional crisis.
Reports suggested that Spain's biggest political crisis in decades moves in to a decisive week as Madrid seeks to impose its control of the restive region. The Spanish government has urged Catalans to accept its decision to dismiss their secessionist leadership amid speculation that the regional President, Carlos Puigdemont, is planning to press ahead with a unilateral declaration of independence, as per reports.
Most Asian stocks gained led by Japanese stocks as the dollar spiked to more than three-month highs against the yen following a snap election in Japan on Sunday, 22 October 2017. Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds "super majority" after winning 312 out of 465 seats available at Sunday's election, as per reports. Abe's solid win at the polls points to a continuation of fiscal and hyper-easy monetary policies under his Abenomics program.
Wall Street stocks surged to fresh records Friday, 20 October 2017, after US lawmakers took a key step toward enacting the tax reform plan sought by President Donald Trump. Investors were cheered by a party-line 51-49 vote in the Senate for a federal budget plan that permits the legislative body to pass the tax cut plan with a simple majority vote instead of a 60-person supermajority.
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