The key equity indices surged to an all-time high on Monday, following positive global cues and boosted by gains in bank stocks. The barometer index, the S&P BSE Sensex, rose 442.31 points or 1.16% to 38,694.11, as per the provisional closing data. The Nifty 50 index rose 134.85 points or 1.17% to 11,691.95, as per the provisional closing data.
After opening higher, key indices firmed up further in mid-afternoon trade. The Sensex rose 485.08 points, or 1.27% at the day's high of 38,736.88 in mid-afternoon trade. The index rose 164.93 points, or 0.43% at the day's low of 38,416.73 in early trade. The Nifty rose 143.85 points, or 1.24% at the day's high of 11,700.95 in mid-afternoon trade. The index rose 38.50 points, or 0.33% at the day's low of 11,595.60 in early trade.
Among secondary barometers, the BSE Mid-Cap index rose 1.07%. The BSE Small-Cap index rose 0.70%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1446 shares rose and 1283 shares fell. A total of 205 shares were unchanged.
Power Grid Corporation of India (up 3.48%), ICICI Bank (up 2.92%), State Bank of India (up 2.78%), Infosys (up 2.55%), Yes Bank (up 2.26%) and Bharti Airtel (up 2.12%), were the top Sensex gainers.
Drug major Sun Pharmaceutical Industries fell 1.40%. It was the only loser in the Sensex pack.
Reliance Industries rose 0.98%. Reliance Brands, a subsidiary of the Reliance Industries (RIL), has purchased an additional 3.07% equity holding in Genesis Colors (GCL) for about Rs 8.32 crore, taking its total stake in GCL to 49.46%. GCL was incorporated in November 1998 and is in the business of retailing and wholesale of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/joint ventures. GCL belongs to a similar industry as Reliance Brands. This acquisition will add to the existing portfolio of branded fashion retail outlets. The announcement was made after market hours on Friday, 24 August 2018.
L&T rose 0.83%. The Water & Effluent Treatment Business of L&T Construction has won an EPC order worth Rs 1394 crore from the Water Resources Department, Government of Madhya Pradesh for the execution of the Kundalia Irrigation Project - Right Bank. The announcement was made during market hours today, 27 August 2018.
The scope includes survey, investigation, design, procurement, construction and installing of pumping system, rising and gravity main line / branch lines / distribution network with control and automation system.
Overseas, Asian and European stocks gained as investors react to comments from US Federal Reserve Chairman Jerome Powell on the US central bank's policy tightening path. This also follows an announcement by China's central bank regarding the yuan's daily midpoint the same day.
In US, the S&P 500 and Nasdaq Composite reached all-time highs on Friday as Netflix shares rose. Sentiment was also boosted by strong earnings and solid economic data being reported earlier last week.
Last Friday, Powell delivered a speech at the Jackson Hole Symposium in Wyoming, where leading central bankers met to discuss the future of monetary policy. He said "further, gradual" rate hikes were likely in the future, noting the economy is "strong" and able to withstand tighter monetary policy.
Powell's comments came hours after the People's Bank of China announced that it was tweaking its methodology for the fixing of the yuan's daily midpoint in an effort to stabilize the currency market.
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