Market registered impressive gains, extending small gains clocked in the previous trading session. The barometer index, the S&P BSE Sensex rose 276.16 points or 0.88% at 31,568.01, as per the provisional closing data. The Nifty 50 index advanced 86.95 points or 0.89% at 9,852.50, as per the provisional closing data. Market sentiment was positive on renewed hopes of US tax reform by the Trump administration.
Realty stocks advanced. DLF rose after the company said that a meeting of the audit committee is scheduled to be held on 25 August 2017 to consider and review the status of the proposed sale of cumulative, compulsory, convertible preference shares (CCPS) held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board.
Software major Infosys gained on buzz the company's co-founder Nandan Nilekani is likely to return as the head of the IT bellwether. FMCG major Hindustan Unilever dropped.
Key indices had opened higher and traded in a narrow range with modest gains till mid-afternoon trade. Indices extended intraday gains in late trade.
The Sensex surged 301.54 points or 0.96% at the day's high of 31,593.39 in late trade, its highest level since 21 August 2017. It rose 87.40 points or 0.27% at the day's low of 31,379.25 in early trade. The Nifty advanced 92.35 points or 0.94% at the day's high of 9,857.90 in late trade, its highest level since 21 August 2017. It gained 21.20 points or 0.21% at the day's low of 9,786.75 in early trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 1.38%. The S&P BSE Small-Cap index provisionally advanced 1.18%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,616 shares rose and 963 shares declined. A total of 135 shares were unchanged.
The total turnover on BSE amounted to Rs 3095.98 crore, higher than turnover of Rs 3063.18 crore registered during the previous trading session.
Realty stocks advanced. Indiabulls Real Estate (up 6.9%), HDIL (up 3.11%), Unitech (up 2.79%), D B Realty (up 1.28%), Prestige Estates Projects (up 1.08%), Sobha (up 0.68%), Oberoi Realty (up 0.52%) and Godrej Properties (up 0.29%) gained.
DLF rose 5.31% at Rs 184.60 after the company said that a meeting of the audit committee is scheduled to be held on 25 August 2017 to consider and review the status of the proposed sale of cumulative, compulsory, convertible preference shares (CCPS) held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board. The announcement was made after market hours yesterday, 22 August 2017.
FMCG major Hindustan Unilever fell 1.05% at Rs 1,188.20. The stock hit a high of Rs 1,197.50 and a low of Rs 1,184.05 in intraday trade.
Software major Infosys rose 2.02% at Rs 894.85 on buzz the company's co-founder Nandan Nilekani is likely to return as the head of the IT bellwether. The developments come a few hours after Narayana Murthy postponed his conference call with Infosys investors citing health issues, as per reports. Murthy, who was slated to hold the conference at 18:30 IST today, 23 August 2017, now will hold the call on 29 August, reports added.
Nilekani was Infosys' CEO for five years till 2007. He left the software major in 2009 to become Chairman of the Unique Identification Authority of India (UIDAI).
Vishal Sikka, the first non-co-founder CEO of Infosys, stepped down last Friday citing continuous distractions and increasingly personal attacks on him. The Infosys Board blamed Murthy's continuous assault as the primary reason for Sikka putting down his papers. Shares of Infosys had tumbled 14.45% in two trading sessions to settle at Rs 873.50 on 21 August 2017, from its closing of Rs 1,021.15 on 17 August 2017. Shares of Infosys had risen 0.42% to settle at Rs 877.15 yesterday, 22 August 2017.
Among other news, the proposed anti-profiteering authority that will monitor pricing behaviour of businesses under the Goods and Services Tax (GST) will be up and running in a fortnight, Central Board of Excise and Customs (CBEC) chairperson Vanaja N. Sarna? reportedly said yesterday, 22 August 2017.
During the two-year transition into the GST regime that started in July, the National Anti-profiteering Authority will step in and ask businesses that have not passed on full benefits of a reduced tax burden to consumers to make up for it with interest.
Overseas, European and Asian stocks were mixed. In economic news, the manufacturing sector in Japan continued to expand in August, and at a faster pace, the latest survey from Nikkei revealed today, 23 August 2017 with a flash Manufacturing PMI score of 52.8. That's up from 52.1 in July.
US stocks closed higher yesterday, 22 August 2017 on renewed hopes of US tax reform. Reports suggested that President Donald Trump's top aides and congressional leaders have made significant strides in shaping a tax overhaul, moving far beyond the six-paragraph framework pushed out in July that stoked fears about their ability to deliver on one of the GOP's (Republican Party) top priorities. There is broad consensus on some of the best ways to pay for cutting both the individual and corporate tax rates, reports suggested.
Meanwhile, the annual Jackson Hole Economic Policy Symposium is scheduled for this Friday in Wyoming. Representatives from the central banks of more than 40 countries will attend the annual gathering, hosted by the Federal Reserve Bank of Kansas City.
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