Key benchmark indices trimmed gains after hitting fresh intraday high in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex rose 143.30 points or 0.46% at 31,435.15. The Nifty 50 index advanced 36.30 points or 0.37% at 9,801.85. Market sentiment was positive on renewed hopes of US tax reform by the Trump administration. Earlier, key indices had opened higher and traded in a narrow range with modest gains so far.
The S&P BSE Mid-Cap index rose 0.72%. The S&P BSE Small-Cap index advanced 0.79%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,505 shares rose and 896 shares declined. A total of 115 shares were unchanged.
Metal shares rose. Hindustan Copper (up 2.38%), Steel Authority of India (up 1.70%), JSW Steel (up 1.57%), Jindal Steel & Power (up 1.32%), Bhushan Steel (up 0.95%), NMDC (up 0.66%), Vedanta (up 0.61%), Tata Steel (up 0.17%) and National Aluminium Company (up 0.14%), edged higher. Hindalco Industries (down 0.39%) and Hindustan Zinc (down 0.61%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2017 delivery was currently down 0.30% at $2.978 per pound on the COMEX.
Most FMCG shares rose. Godrej Consumer Products (up 1.93%), Britannia Industries (up 0.96%), Jyothy Laboratories (up 0.35%), Tata Global Beverages (up 0.29%), Marico (up 0.17%), Nestle India (up 0.14%), Bajaj Corp (up 0.10%) and Procter & Gamble Hygiene & Health Care (up 0.01%), edged higher. GlaxoSmithKline Consumer Healthcare (down 0.04%), Colgate Palmolive (India) (down 0.05%), Hindustan Unilever (down 0.98%) and Dabur India (down 1.13%), edged lower.
Engineering and construction major Larsen & Toubro was up 0.07% to Rs 1,119.95. The company announced during trading hours today, 23 August 2017, that it received shareholders' approval to appoint S.N Subrahmanyan as chief executive officer, managing director. The shareholders also approved to raise funds worth up to Rs 4000 crore via issue of securities to qualified institutional buyers. Further, the The shareholders also approved issue of non-convertible Debentures (NCDs) worth Rs 6000 crore.
Tata Power Company was down 1% to Rs 79.15. The company announced during trading hours today, 23 August 2017, that its renewable portfolio in India has registered a healthy consolidated profit after tax (PAT) of Rs 142.18 crore in Q1 June 2017, a 329% increase from Q1 June 2016. The renewable business capacity of Tata Power crossed 2000 megawatts (MW) and non-fossil fuel portfolio stood at 3144 MW, a 92% increase from the corresponding quarter last year. Another 500 MW of capacity is under construction by Tata Power Renewable Energy (TPREL), Tata Power's wholly-owned subsidiary. The operating renewable portfolio of TPREL has grown to 1457.2 MW, comprising 530.2 MW wind and 927 MW solar respectively.
Real estate major DLF jumped 5.96% to Rs 185.75 after the company said that 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 board will in its meeting scheduled to be held later on 25 August 2017, consider the said recommendations and take appropriate decisions, as required. The announcement was made after market hours yesterday, 22 August 2017.
On 1 March 2017, the audit committee after due deliberations and with due consultations with the CCPS holders, approved entry into the next phase of the process to negotiate definitive transaction documents and execution of an exclusivity agreement with an affiliate of GIC Singapore.
The board of directors had authorized the audit committee to determine and finalise the terms of CCPS sale transaction including selection of unrelated third party institutional investors in consultation with the CCPS holders, as appropriate, to negotiate and finalize the transaction documents and to oversee and facilitate the CCPS sale transaction.
On 8 October 2015, board had approved the proposal of three promoter group companies or CCPS holders to sell 15.96 crore CCPS of DLF Cyber City Developers to unrelated third party institution investors subject to certain conditions.
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, most European stocks rose in early trade. Most Asian stocks edged higher following overnight gains on Wall Street. 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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