Key benchmark indices logged strong gains in steady session of trade led by buying demand in index heavyweights ITC, Reliance Industries and ICICI Bank. The barometer index, the S&P BSE Sensex, gained 352.21 points or 0.95% at 37,336.85. The Nifty 50 index gained 111.05 points or 0.99% at 11,278.35. Positive global stocks boosted sentiment on the domestic bourses.
Stocks traded with firmness throughout the day's trading session. Key benchmark indices saw a gap-up opening triggered by positive Asian stocks. Stocks extended gains in morning trade. Stocks held firm till afternoon trade. Indices extended gains in mid-afternoon trade and hit fresh intraday high in late trade. The Sensex and the Nifty, both, scaled fresh record high in intraday trade.
The S&P BSE Mid-Cap index rose 0.95%. The S&P BSE Small-Cap index rose 0.88%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1660 shares rose and 965 shares fell. A total of 165 shares were unchanged.
Index heavyweight ITC gained 5.24% to Rs 302.20. The company's net profit rose 10.1% to Rs 2818.68 crore on 6.9% increase in net sales to Rs 10554.66 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 26 July 2018.
Index heavyweight Reliance Industries rose 1.73% ahead of its June 2018 quarterly result today, 27 July 2018.
Adani Ports and Special Economic Zone (APSEZ) lost 1.44%. APSEZ after market hours yesterday, 26 July 2018 said it had signed a long term agreement with GAIL (India) to provide Liquefied Natural Gas (LNG) regasification services on a use or pay basis, at its upcoming LNG import terminal at Dhamra in Odisha. The terminal is expected to be commissioned during the second half of 2021.
As per the contract, GAIL (India) has booked 1.5 million tonnes per annum (MTPA) regasification capacity for a period of 20 years. GAIL plans to supply the gas to its portfolio of customers located in the eastern region and along the under development Jagdishpur- Haldia gas grid. The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 MTPA, expandable up to 10 MTPA. Initially, it will have two full containment type tanks of 180,000 m3 capacity each. It will be first of its kind in India and second LNG terminal on the east coast after IOC's Ennore terminal in Tamilnadu.
Tata Motors gained 3.56%. The company during market hours today, 27 July 2018 said that S & P Global Ratings, the credit rating of the company and its wholly owned subsidiary has been downgraded. The rating of Tata Motors is downgraded due to weakening operating conditions for Jaguar Land Rover (JLR). The rating of Jaguar Land Rover Automotive Plc (JLRs Wholly owned subsidiary) is downgraded due to weakening operating conditions.
Bharti Airtel rose 1.23% after consolidated net income fell 73.5% to Rs 97 crore on 8.6% decline in total revenues to Rs 20080 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 26 July 2018.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) fell 12.6% to Rs 6837 crore in Q1 June 2018 over Q1 June 2017.
India revenues for Q1 June 2018 at Rs 14930 crore have declined by 7.0% Y-o-Y (declined 13.5% on reported) on an underlying basis. Mobile segment continues to be impacted by aggressive industry pricing and has witnessed Y-o-Y de-growth of 11.0%.
India other business have witnessed healthy Y-o-Y growth e.g. 10.6% in Digital TV and 11.8% in Airtel Business on an underlying basis. Mobile data traffic has quadrupled to 2,151 billion MBs in the quarter as compared to 472 billion MBs in the corresponding quarter last year. Mobile broadband customers increased by 75.2% to 85.7 million from 48.9 million in the corresponding quarter last year.
Hindalco Industries rose 3.51%. Hindalco Industries announced that its wholly-owned subsidiary, Novelis Inc, announced signing of a definitive agreement to purchase Aleris Corporation, a global aluminium rolled products major, headquartered in the United States, for $2.58 billion in a debt finance deal. The announcement was made after market hours yesterday, 26 July 2018.
Aleris is a privately held company and is amongst the leading producers in aluminium rolled products globally. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia.
Overseas, European shares were trading higher Friday as traders monitored new corporate earnings. Most Asian stocks edged higher following a series of steps by China shifting to stimulus mode. Investors are awaiting the second-quarter US GDP report due later in the day.
The European Central Bank (ECB) left interest rates unchanged and affirmed its plan to end its monthly bond-buying program in December, as had been expected. In addition, ECB President Mario Draghi said that uncertainty around the inflation outlook was receding.
US stocks closed mostly lower on Thursday, weighed down by sharp losses in technology shares as Facebook posted its biggest one-day drop ever following disappointing quarterly results. Investors cheered Wednesday's upbeat meeting between Trump and the European Commission's president.
In economic data, the US trade deficit in goods widened to $68.3 billion in June, up 5.5% or $3.6 billion, according to the Commerce Department's advanced estimate released Thursday.
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