Key benchmark indices continued to trade firm in afternoon trade as various measures taken by the government to spur economy including capitalisation of public sector banks and massive road building program boosted sentiment. At 13:15 IST, the barometer index, the S&P BSE Sensex gained 444.73 points or 1.36% at 33,052.07. The Nifty 50 index rose 82.30 points or 0.81% at 10,290. The Sensex reclaimed 33,000 level after falling below that level in early trade. Firmness in Asian stocks also supported gains on the bourses.
Market witnessed a gap up opening and scaled fresh record highs in early trade. Later, the Sensex slipped below the psychologically important 33,000 level after marching past that mark for the first time in its history in early trade. Indices trimmed gains in the morning trade. Stocks regained strength later during the session.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.01%. The S&P BSE Small-Cap declined 0.19%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,395 shares fell and 1,112 shares rose. A total of 140 shares were unchanged.
Capital goods stocks were mostly higher. L&T (up 5.7%), Bhel (up 3.75%), Siemens (up 2.67%), Thermax (up 1.16%) and Praj Industries (up 0.36%) edged higher. Havells India (down 2.77%), Bharat Electronics (down 0.06%) and BEML (down 0.01%) edged lower.
ABB India rose 0.95% at Rs 1,369.30 after net profit rose 18.17% to Rs 83.39 crore on 7.28% fall in total income to Rs 1953.12 crore in Q3 September 2017 over Q3 September 2016. The result was announced after market hours yesterday, 24 October 2017.
FMCG stocks were mixed. Marico (up 1.18%), Dabur India (up 1.02%), Procter & Gamble Hygiene and Health Care (up 0.62%) and Britannia Industries (up 0.17%) edged higher. Colgate-Palmolive (India) (down 1.34%), Nestle India (down 1.1%) and Godrej Consumer Products (down 0.88%) declined.
FMCG major Hindustan Unilever rose 0.25% at Rs 1,274.45. The company is scheduled to announce Q2 September 2017 results today, 25 October 2017.
On the macro front, the government yesterday, 24 October 2017, decided to take a massive step to capitalise pulic sector banks (PSBs) in a front-loaded manner, with a view to support credit growth and job creation. This entails mobilization of capital, with maximum allocation in the current year, to the tune of about Rs 2.11 lakh crore over the next two years, through budgetary provisions of Rs 18139 crore, recapitalisation bonds to the tune of Rs 1.35 lakh crore, and the balance through raising of capital by banks from the market while diluting government equity (estimated potential Rs 58000 crore). There will be a strong push on enabling growth of micro- small and medium enterprises (MSMEs) through enhanced access to financing and markets, and a drive to finance MSMEs in 50 clusters.
Taking forward its commitment to providing more efficient transportation, government has debottlenecked the roads sector and significantly stepped up the Highway development and road building program. In order to further optimise the efficiency of movement of goods and people across the country, government has launched a new umbrella program. This road building program, for 83,677 kilometers of roads, involves capex of Rs 6.92 lakh crore over next 5 years. Out of this, Bharatmala Pariyojana to be implemented with an outlay of Rs 5.35 lakh crore will generate 14.2 crore mandays of jobs.
Ministry of finance secretaries at the press conference held yesterday, 24 October 2017 said that industrial production, core sector, index, automobile, consumer spending etc. pointing out a strong growth pick up and there is expectation of very good economic growth from second quarter of current year itself. The recapitalisation and the initiatives announced yesterday, 24 October 2017, are expected to have a noticeable impact in the near-term, contributing to accelerated economic activity, employment and growth of the economy, it added.
Overseas, European stocks edged lower in early trade as investors look out for new earnings reports and economic data. Asian stocks rose following the overnight gains on Wall Street as upbeat corporate earnings results and optimism about global economic growth boosted investor sentiment. China's Communist Party revealed its new top leadership helmed by President Xi Jinping, breaking with recent precedent by failing to include a clear successor among the seven-man line-up. Apart from Xi, Premier Li Keqiang was the only one to retain his spot amid sweeping changes on the Politburo Standing Committee, the height of power in China.
On Wall Street, stocks continued to surge yesterday, 24 October 2017, touching new record highs after strong earnings from heavy-hitters Caterpillar and 3M.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
