Key benchmark indices continued to trade divergently near the flat line in early afternoon trade. The Sensex traded with small gains whereas Nifty traded with tiny losses. At 12:20 IST, the barometer index, the S&P BSE Sensex rose 66.12 points or 0.2% at 33,213.25. The Nifty 50 index lost 5.20 points or 0.05% at 10,338.60.
Indices edged higher and hit fresh record highs in early trade on firm Asian stocks. Market hovered in positive terrain with small gains in morning trade. Indices witnessed divergent trend later during the session.
Among secondary indices, the S&P BSE Mid-Cap index rose 0.51%. The S&P BSE Small-Cap index gained 0.53%. Both the indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,409 shares rose and 1,047 shares declined. A total of 137 shares were unchanged.
Construction stocks extended recent gains triggered by the government approving mega highway plan to develop about 83,000 kilometers of roads at an investment of Rs 7 lakh crore in next 5 years earlier this week. Jaiprakash Associates (up 1.1%), Hindustan Construction Company (up 1.83%), IRB Infrastructure & Developers (up 0.69%), GVK Power Infrastructure (up 4.96%), L&T (up 0.75%), Gammon India (up 4.92%) and Lanco Infratech (up 4.4%) gained. NCC (down 0.23%) and Unity Infraprojects (down 3.9%) declined.
Realty stocks were mixed. DLF (up 2.17%), D B Realty (up 0.01%), Sobha (up 0.72%), Unitech (up 5.58%), NBCC (up 1.34%), and Oberoi Realty (up 0.49%) edged higher. Indiabulls Real Estate (down 0.58%), Godrej Properties (down 0.07%), and Housing Development & Infrastructure (HDIL) (down 0.43%) declined.
United Spirits spurted 15.09% after net profit rose 85.6% to Rs 153.10 crore on 3.7% decline in net sales to Rs 1951.30 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 26 October 2017.
Anand Kripalu, CEO, said that in the second quarter the company has delivered strong underlying net sales growth of 4% driven by 12% growth in the Prestige & Above segment, despite the impact of the highway ban. Additionally, it has delivered expanded margins despite the impact of Goods and Services Tax (GST).
With the recent Supreme Court clarification on the highway ban, outlets were seen re-opening in September and the impact of the highway ban is expected to continue to decrease and the business to normalize by end of the third quarter. The company expects the net adverse impact of GST on its margins to be moderate in this financial year.
The company continues to focus on its strategic priorities to capture the long term opportunity in the spirits market and achieve its medium term ambition to grow top line by double digit and improve margins to mid-high teens.
Overseas, Asian stocks rose following gains in US equities as earnings and congressional action on tax reform boosted confidence in the growth outlook. The US House passed a budget resolution seen as advancing the prospects for tax reform.
Profits for China's industrial powerhouses surged the most in nearly six years in September. Industrial profits in September rose 27.7% from a year earlier to 662.18 billion yuan ($99.46 billion), accelerating from a 24% jump in August, the National Bureau of Statistics (NBS) said.
US stocks ended mostly higher yesterday, 26 October 2017, as a fusillade of better-than-expected corporate quarterly results helped to reinvigorate Wall Street buying appetite.
Meanwhile, European Central Bank President Mario Draghi yesterday, 26 October 2017, outlined plans to halve its monthly bond purchases to 30 billion euros ($35 billion) from 60 billion euros starting in January, but he also indicated that zero percent interest rates could remain at current levels until well past whenever it finally decides to end its quantitative easing measures.
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