Key benchmark indices jumped, backed by strong gains in metals and FMCG shares. The barometer index, the S&P BSE Sensex, rose 321.86 points or 1.02% to 31,770.89, as per the provisional closing data. The Nifty 50 index rose 103.15 points or 1.05% to 9,897.30, as per the provisional closing data. Today's gains were led by ITC, HDFC and HDFC Bank.
The Sensex rose 356.96 points, or 1.14% at the day's high of 31,805.99 in late trade, its highest level since 9 August 2017. The index fell 49.68 points, or 0.16% at the day's low of 31,399.35 in early trade. The Nifty rose 109.80 points, or 1.12% at the day's high of 9,903.95 in late trade, its highest level since 9 August 2017. The index fell 20.30 points, or 0.21% at the day's low of 9,773.85 in early trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 1.26%. The BSE Small-Cap index provisionally rose 1.31%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. 1639 shares rose and 919 shares fell. A total of 133 shares were unchanged.
The total turnover on BSE amounted to Rs 4392.20 crore, higher than turnover of Rs 3131.72 crore registered during the previous trading session.
Metal shares rose. Bhushan Steel (up 10.71%), National Aluminium Company (up 4.46%), Hindustan Zinc (up 3.44%), Vedanta (up 2.77%), Steel Authority of India (up 2.76%), JSW Steel (up 2.64%), Hindustan Copper (up 1.77%), Hindalco Industries (up 1.72%), Tata Steel (up 1.51%), Jindal Steel & Power (up 1.43%) and NMDC (up 0.29%), edged higher.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 1.40% at $2.9235 per pound on the COMEX.
FMCG shares were in demand. Britannia Industries (up 3.18%), Hindustan Unilever (up 3.09%), Colgate Palmolive (India) (up 1.95%), Dabur India (up 1.03%), Godrej Consumer Products (up 0.91%), GlaxoSmithKline Consumer Healthcare (up 0.72%), Procter & Gamble Hygiene & Health Care (up 0.53%), Nestle India (up 0.26%) and Jyothy Laboratories (up 0.07%), edged higher. Marico (down 0.36%) and Bajaj Corp (down 0.43%), edged lower.
Tata Global Beverage rose 8.25% to Rs 193.45 after the company said that the premium natural mineral water brand Himalayan will enter the USA market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company, the maker of Sparkling Ice flavored sparkling waters to distribute and market the brand. This makes Himalayan one of the first premium Indian FMCG brands to target the broader American audience. The announcement was made on Tuesday, 15 August 2017, when market remained closed for holiday.
Jubilant FoodWorks was up 1.69% to Rs 1,387 on reports that a foreign brokerage has increased the target price on the stock to Rs 1,900 from Rs 1,600. As per reports, the foreign brokerage has also raised the target PE multiple on Jubilant FoodWorks to 60, from 55.
Index heavyweight and cigarette major ITC gained 2.90% to Rs 279. The stock hit a high of Rs 281.70 and a low of Rs 271.65 in intraday trade.
Biocon tumbled 6.06% to Rs 328.10 on heavy volumes amid media reports of withdrawal of Trastuzumab application and the subsequent clarification issued by the company.
Biocon in its clarification issued to the stock exchanges during market hours today, 16 August 2017 said that as previously communicated, whilst its drug substance facilities for Trastuzumab and Pegfilgrastim were approved, the European regulatory authorities had informed Biocon of the need for a re-inspection of its drug product facility for these products.
Biocon further said that the request for withdrawal of the dossiers and re-submission is part of the EMA procedural requirements linked to this re-inspection and will be considered by the EMA's Committee for Medicinal Products for Human Use (CHMP). Biocon said it is on track to complete its corrective and preventive actions (CAPAs) by the end of this quarter and it is its intent to seek re-inspection and re-submission thereafter.
On the macro front, the all-India general Consumer Price Index (CPI)-based inflation rebounded 2.36% in July 2017, compared with 1.46% in June 2017. The data was released after market hours on Monday, 14 August 2017.
Data released after market hours on Monday, 14 August 2017, by the commerce ministry showed that goods exports rose for the twelfth consecutive month with shipments in July registering a 3.94% year-on-year growth to $22.54 billion. Goods imports in July recorded 15.42% to $33.99 billion the slowest pace since 1.13% growth in January 2017. This led to trade deficit (goods) narrowing on a month-on-month basis to $11.45 billion, the lowest since $10.5 billion recorded in March 2017.
Overseas, European stocks were trading higher with investors awaiting euro zone GDP figures which are expected to confirm the bloc's economic growth was on track. Asian shares settled mixed as investors digested earnings releases from regional corporates.
In US, the main benchmarks ended little changed overnight amid better-than-expected retail sales data and an abatement of tensions between the US and North Korea. The Dow Jones Industrial Average finished up 5.28 points, or less than 0.1%, at 21,998.99. The S&P 500 index declined 1.23 points to finish at 2,464.61. The Nasdaq Composite Index slipped 7.22 points, or 0.1%, to close at 6,333.01.
US retail sales recorded their biggest increase in seven months in July as consumers boosted purchases of motor vehicles as well as discretionary spending, suggesting the economy continued to gain momentum early in the third quarter. The Commerce Department said on Tuesday, 15 August 2017, that retail sales jumped 0.6% last month. That was the largest gain since December 2016 and followed June's upwardly revised 0.3% rise.
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