Key benchmarks logged modest gains on steady buying demand with the Sensex and the Nifty, both, scaling record highs. The barometer index, the S&P BSE Sensex, gained 221.76 points or 0.59% at 37,887.56, as per the provisional closing data. The Nifty 50 index gained 60.55 points or 0.53% at 11,450, as per the provisional closing data. Today's gains were led by index pivotals Reliance Industries, ICICI Bank and State Bank of India.
Volatility struck bourses in early trade as the key benchmark indices trimmed almost entire gains after a higher start triggered by positive Asian stocks. Stocks hovered with small gains in morning trade. Fresh buying pushed the key benchmark indices higher in early afternoon and afternoon trade. Key benchmarks trimmed gains in mid-afternoon trade. Stocks extended gains in late trade with the Sensex and the Nifty, both, scaling record highs.
The S&P BSE Mid-Cap index rose 0.16%. The S&P BSE Small-Cap index rose 0.03%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1339 shares rose and 1397 shares fell. A total of 133 shares were unchanged.
Reliance Industries (RIL) advanced 2.85%. RIL had on 20 February 2018 said that Reliance Industrial and Investment Holdings (RIIHL), a wholly owned subsidiary of the company, had entered into an agreement with Eros International Plc. agreeing to subscribe to 5% equity stake of Eros International Plc.
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RIL during market hours today, 8 August 2018 said that it has now completed the acquisition by subscribing to 31.11 lakh 'A' ordinary shares at $15 per share for cash aggregating to $46.67 million, translating to 5% equity stake on a fully diluted basis of Eros International Plc. The investment has been made by RIL directly.
Hindustan Petroleum Corporation lost 1.7% ahead of its April-June 2018 result today, 8 August 2018.
Maruti Suzuki India fell 2.02%. Maruti Suzuki India during market hours today announced the introduction of Auto Gear Shift (AGS) option in top-end ZXi+ and ZDi+ variants of its best seller - all-new Swift on customer demand. Maruti Suzuki had launched the third generation of Swift in February 2018. The all-new Swift comes with a new exciting design, enhanced performance and advanced passenger safety, pedestrian safety and child safety. At the launch, AGS transmission was offered in VXI, ZXI, VDI and ZDI variants.
Hindalco Industries rose 0.57% after the company's US-based subsidiary, Novelis, reported good earnings in June quarter. Novelis on Tuesday, 7 August 2018, posted a 10% increase in net income at $113 million in the June quarter on better operational performance and higher capacity utilisation. The company, which deals in aluminium rolled products, had reported a net income of $103 million in the same period last year.
However, including some tax benefits, the firm reported a net income of $137 million, against $101 million in year-ago period, attributable to its common shareholder, it said in a statement. The increase in net income, excluding special items, was mainly due to a 15% increase in adjusted EBITDA over the prior year to $332 million in the first quarter of fiscal 2019, it said.
Its sales increased 16% to $3.1 billion, driven by higher average aluminium prices, higher shipments, and more favourable product mix, partially offset by lower conversion premiums on some products, the statement said.
Lupin fell 4.75% after consolidated net profit fell 43.11% to Rs 203.02 crore on 0.85% decline in net sales to Rs 3774.57 crore in Q1 June 2018 over Q1 June 2017. The result was announced during trading hours today, 8 August 2018.
Commenting on the results, Nilesh Gupta, managing director, Lupin said that the Q1 June 2018 has been subdued, primarily on account of the US and Japan. The firm has made meaningful progress in building its complex generics and specialty business with the launch of Solosec in the US and its successful partnership to commercialize biosimilar Etanercept with Nichi-Iko for Japan and Mylan for Europe and other markets. The company remains committed to accelerating new product introductions, evolving its business and delivering on operational and cost efficiencies.
On the macro front, the International Monetary Fund (IMF) reportedly said on Wednesday that India's central bank will need to gradually tighten monetary policy further due to rising inflation, driven mainly driven by higher oil prices and a falling rupee. The average inflation is likely to rise to 5.2% in 2018-2019 from a 17-year low of 3.6% in the previous fiscal year, the IMF said. It said inflationary pressures were also exerted by a pick up in domestic demand and recent hike in procurement prices of major crops by the government, as it seeks to win support from farmers ahead of national elections next year.
Overseas, most European shares were trading higher as investor kept a close eye on corporate earnings and trade tensions.
Asian equities were mixed as investors looked past protectionism tussles and instead focused on US stocks approaching fresh all-time highs. China's trade surplus narrowed to 176.96 billion yuan ($25.91 billion) in July, from a surplus of 261.9 billion yuan the previous month, official data showed Wednesday China's exports in July grew 6% from a year earlier in yuan terms, following a 3.1% increase in June. Imports for July surged 20.9% in yuan terms from a year earlier, compared with a 6% increase in June.
Trade tensions remain in focus after the Trump administration said it will impose 25% tariffs on $16 billion in Chinese imports starting on 23 August 2018. The administration already placed tariffs on $34 billion of Chinese goods last month but delayed on the additional tariffs to hear from US companies.
US stocks closed higher Tuesday as investors continued to brush aside anxiety over the trade war between the US and China and instead focus on positive corporate earnings.
On the economic-data front, the latest report from the Labor Department showed there were 6.66 million job openings at the end of June, up fractionally from May's levels and the third highest in history.
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