The two key benchmark indices continued to trade firm near record high levels in afternoon trade led by strong buying demand in index pivotals HDFC Bank, ITC and HDFC. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 407.55 points or 1.16% at 35,489.37. The Nifty 50 index was up 88.85 points or 0.82% at 10,877.40. Gains were triggered on reports indicating that the government is mulling a proposal to hike foreign direct investment (FDI) limit in the banking sector. Positive Asian stocks also underpinned sentiment. IT and capital goods stocks declined.
Domestic stocks saw gap-up opening following positive Asian cues. Stocks held firm after the Sensex and the Nifty hit fresh record high levels in morning trade.
The S&P BSE Mid-Cap index was off 0.57%. The S&P BSE Small-Cap index dropped 0.12%. Both these indices underperformed the Sensex.
Overseas, Asian stocks edged higher amid optimism over global growth prospects. In China, the National Bureau of Statistics announced today, 18 January 2018 that the economy had expanded 6.9% last year, up slightly from 6.7% in 2016 and breaking a trend of gradual slowing that had begun in 2011. For the fourth quarter, it reported growth of 6.8% over a year earlier.
US stocks rose to fresh highs yesterday, 17 January 2018 as companies continued to indicate the tax overhaul will boost earnings this year. The Dow Jones Industrial Average staged a late rally to end above 26,000 for the first time ever.
The Fed's Beige Book indicted that the outlook for 2018 remains optimistic for a majority of contacts across the country. As for the much vaunted tax cuts, only businesses in Chicago and Dallas were excited over the Republican tax plan, while districts along the East Coast were worried about higher taxes from the new limits on deductions for mortgage interest and property and state income taxes, reports indicated.
Back home, the breadth, indicating the overall health of the market, was negative. On the BSE, 1,621 shares declined and 1,167 shares rose. A total of 133 shares were unchanged.
IT stocks dropped. Infosys (down 0.58%), Wipro (down 0.69%), Tech Mahindra (down 0.31%), HCL Technologies (up 0.09%) and Oracle Financial Services Software (down 0.61%) edged lower.
IT major Tata consultancy Services (TCS) was up 0.11% at Rs 2,892.60 after the company announced the expansion of a strategic partnership with Shure Incorporated, a world-renowned audio equipment manufacturer. As a part of this collaboration, TCS has established a global development center to help build cross-platform and mobile enabled software for Shure's leading edge audio technology and solutions for an exceptional end-user customer experience. The announcement was made after market hours yesterday, 17 January 2018.
MindTree surged 9.66% at Rs 683.70 after consolidated net profit rose 13.4% to Rs 141.50 crore on 3.5% rise in net sales to Rs 1377.70 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours yesterday, 17 January 2018.
Capital goods stocks also declined. Siemens (down 1.33%), Suzlon Energy (down 1.3%), ABB India (down 1.19%), Thermax (down 1.15%), BEML (down 0.8%) and Bhel (down 0.6%) edged lower. L&T (up 1.61%) gained.
Emami Paper Mills rose 2.35% to Rs 216 after L&T Mutual Fund purchased bulk shares on the BSE yesterday, 17 January 2018. Jekay International Track sold 4.70 lakh shares of Emami Paper Mills at Rs 225 per share in a bulk deal on the BSE yesterday, 17 January 2018. Parwati Devi Jalan offloaded 5.71 lakh shares. Ganpati Industrial disposed of 22.42 lakh shares. L&T Mutual Fund under its three schemes bought a total of 32.84 lakh shares at Rs 225 apiece.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
