Key benchmark indices extended gains and hit fresh intraday high in morning trade. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 106.81 points or 0.31% at 34,024.75. The Nifty 50 index was up 36.25 points or 0.35% at 10,457.65. The Sensex hit an intraday high above the 34,000 level. Telecom stocks rose. Cement stocks gained. Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalling an economic turnaround boosted the sentiment.
Volatility struck bourses in early trade as the key benchmark indices turned positive soon after an initial decline triggered by subdued Asian stocks.
The S&P BSE Mid-Cap index was up 0.95%. The S&P BSE Small-Cap index was up 1.06%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,259 shares rose and 598 shares fell. A total of 84 shares were unchanged.
Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalled an economic turnaround. India's industrial production continued to record a strong growth for the third straight month at 7.5% in January 2018 from 7.1% growth in December 2017. The manufacturing sector's production surged 8.7% in January 2018, supporting overall growth in industrial production. The mining output growth slowed down to 0.1% in January 2018, while the electricity generation growth accelerated to five-month high of 7.6% in January 2018, contributing to the improvement in overall industrial production growth in January 2018.
The all-India general CPI inflation dipped to four-month low of 4.44% in February 2018, compared with 5.07% in January 2018. The corresponding provisional inflation rate for rural area was 4.37% and urban area 4.52% in February 2018 as against 5.21% and 4.93% in January 2018. However, the core CPI inflation rose marginally to 5.04% in February 2018 compared with 5% in January 2018.
Overseas, most Asian stocks were trading lower ahead of US reading on inflation due today, 13 March 2018, which is likely to give some idea about whether the Federal Reserve will accelerate its pace of rate increases.
In US, the Dow Jones Industrial Average and the S&P 500 index finished lower Monday, 12 March 2018 weighed down by the industrials sector, while the Nasdaq Composite Index closed at a record, in part due to optimism over Friday's jobs data, which showed solid economic growth without triggering wage pressure.
Back home, State Bank of India (up 2.47%), Wipro (up 2.17%) and Bajaj Auto (up 1.17%) edged higher from the Sensex pack.
Telecom stocks rose. Idea Cellular (up 1.08%), MTNL (up 1.25%), Tata Teleservices (Maharashtra) (up 4.86%), Bharti Airtel (up 0.77%) and Reliance Communications (up 0.43%) rose.
Shares of Bharti Infratel rose 1.97%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cement stocks gained. Shree Cement (up 2.08%), Ambuja Cements (up 0.42%), ACC (up 0.72%) and UltraTech Cement (up 0.47%) gained.
Grasim Industries was up 0.19%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Shankara Building Products rose 2.21% to Rs 1,788.55. Amansa Holdings bought 1.47 lakh shares of the company at Rs 1,755 per share in a bulk deal on the BSE on 12 March 2018. It purchased 2.15 lakh shares at Rs 1,755 apiece in a bulk deal on the NSE.
Kalyani Steels rose 1.5% to Rs 293.80 after promoter increased stake in the company through open market transaction yesterday, 12 March 2018. Gloxinia Investment and Finance sold 2.35 lakh shares of Kalyani Steels at Rs 287.57 per share in a bulk deal on the NSE on 12 March 2018. Promoter Sundaram Trading and Investment bought 2.39 lakh shares at Rs 287.69 apiece. Sundaram Trading and Investment controlled 13.79% and Gloxinia Investment and Finance held 1.15% stake end December 2017.
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