Key benchmark indices settled at record high levels after an International Monetary Fund (IMF) report showed India was set to regain the title as the world's fastest growing major economy in 2018-2019. Positive global cues also underpinned investors sentiment. The barometer index, the S&P BSE Sensex, rose 341.97 points or 0.96% to 36,139.98, as per the provisional closing data. The Nifty 50 index rose 117.50 points or 1.07% to 11,083.70, as per the provisional closing data.
Shares opened higher as positive leads from Asian markets and overnight gains on the Wall Street boosted investors' sentiment. Indices gradually extended gains as the session progressed with the Sensex and the Nifty hitting fresh record high levels in late trade. Key indices crossed new milestones with the Sensex closing above the 36,000 mark and the Nifty closing above the 11,000 mark.
The Sensex rose 372.82 points, or 1.04% at the day's high of 36,170.83in late trade, its record high level. The index rose 65.97 points, or 0.18% at the day's low of 35,863.98 in early trade. The Nifty rose 126.70 points, or 1.16% at the day's high of 11,092.90 in late trade, its record high level. The index rose 28.35 points, or 0.26% at the day's low of 10,994.55 in early trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 1.13%, outperforming the Sensex. The BSE Small-Cap index provisionally rose 0.22%, underperforming the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,532 shares fell and 1,364 shares rose. A total of 142 shares were unchanged. Breadth was quite strong in early trade.
The total turnover on BSE amounted to Rs 6791.09 crore, higher than turnover of Rs 4922.79 crore registered during the previous trading session.
Metal shares were in demand. Jindal Steel & Power (up 10.37%), JSW Steel (up 5.45%), Vedanta (up 5.10%), Steel Authority of India (up 4.87%), Hindalco Industries (up 4%), NMDC (up 3.71%), Tata Steel (up 3.32%), National Aluminium Company (up 2.14%) and Hindustan Zinc (up 1.43%), edged higher. Hindustan Copper (down 0.28%) and Bhushan Steel (down 2.30%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2018 delivery was currently down 1.49% at $3.151 per pound on the COMEX.
Vinyl Chemicals (India) rose 5.29% after net profit galloped 506.67% to Rs 4.55 crore on 62% growth in total income to Rs 110.68 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 23 January 2018.
Rane (Madras) was locked at 20% upper circuit at Rs 863.45 after net profit surged 317.5% to Rs 14.20 crore on 31.7% rise in total net revenue to Rs 318.60 crore in Q3 December 2017 over Q3 December 2016. Earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 12.1% in Q3 December 2017 from 8.7% in Q3 December 2016. The result was announced during market hours today, 23 January 2018.
Sasken Technologies surged 6.54% after consolidated net profit rose 8.52% to Rs 20.37 crore on 5.63% growth in net sales to Rs 131.87 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours yesterday, 22 January 2018.
On the macro front, the International Monetary Fund (IMF) revised upward its forecast for world economic growth in 2018 and 2019, to 3.9% for both 2018 and 2019, a 0.2% increase from its last update in October.
India is forecast to grow 7.4% in FY 2019 against 6.7% this year, gaining pace to 7.8% in FY 2020, the IMF said in its January update of the World Economic Outlook: Brighter Prospects, Optimistic Markets, Challenges Ahead that was released simultaneously in Davos and Washington.
Overseas, European shares opened higher, following strong gains seen in Asia. Asian shares gained following the stronger lead from Wall Street after US lawmakers reached a deal to end a government shutdown.
Japan's central bank kept monetary settings unchanged and offered a more upbeat view on inflation expectations than three months ago. The Bank of Japan (BOJ) maintained a pledge to guide short-term interest rates at minus 0.1% and 10-year bond yields around zero percent at its two-day rate review that ended on Tuesday. It also kept intact a loose pledge to buy government bonds so its holdings increase roughly at an annual pace of 80 trillion yen ($722 billion). The nine-member board also kept its price forecasts that project inflation to hit 2% around the fiscal year ending in March 2020.
US stocks ended higher yesterday, 22 January 2018, after the Senate reached a short-term compromise to end a government shutdown that began last week. The stopgap bill approved by the Senate on Monday will keep the US government open through 8 February 2018. The House of Representatives subsequently voted and passed the bill to reopen the government, sending it to President Donald Trump for a signature. The Dow Jones Industrial Average gained 0.6%. The S&P 500 rose 0.8%. The Nasdaq Composite Index rose 1%.
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