Key benchmark indices held firm in morning trade after an initial rally triggered by positive Asian stocks. At 10:22 IST, the barometer index, the S&P BSE Sensex, was up 351.39 points or 1% at 35,433.21. The Nifty 50 index was up 77.40 points or 0.72% at 10,865.95. Both the Sensex and the Nifty hit fresh record high levels in morning trade. Telecom stocks saw mixed trend. Metal and mining stocks declined.
Domestic stocks saw gap-up opening following positive Asian cues.
The S&P BSE Mid-Cap index was up 0.2%. The S&P BSE Small-Cap index was up 0.67%. Both these indices undeperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,527 shares rose and 897 shares fell. A total of 107 shares were unchanged.
Overseas, Asian stocks extended this year's stellar run, following their US counterparts higher amid optimism for global growth. US stocks rose to fresh highs yesterday, 17 January 2018 as companies continued to indicate the tax overhaul will boost earnings this year. The Dow Jones Industrial Average staged a late rally to end above 26,000 for the first time ever.
The Fed's Beige Book indicted that the outlook for 2018 remains optimistic for a majority of contacts across the country. As for the much vaunted tax cuts, only businesses in Chicago and Dallas were excited over the Republican tax plan, while districts along the East Coast were worried about higher taxes from the new limits on deductions for mortgage interest and property and state income taxes, reports indicated.
Back home, telecom stocks saw mixed trend. Idea Cellular (up 0.19%) and MTNL (up 0.03%) rose. Tata Teleservices (Maharashtra) (down 3.18%) and Reliance Communications (down 2.31%) declined.
Bharti Airtel rose 1.13% ahead of its Q3 December 2017 results today, 18 January 2018.
Shares of Bharti Infratel fell 3.58% after consolidated net profit fell 6% to Rs 585 crore on 7% increase in revenue to Rs 3655 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 17 January 2018. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Akhil Gupta, Chairman, Bharti Infratel, said that the overall long-term outlook for the telecom industry would be positive due to expected accelerated step-up of nationwide 4G rollouts by operators. With Infratel's reach, financial strength and operational expertise, the company is in the best position to capture what it believes is a big potential for the industry based on exciting data-based demand.
Metal and mining stocks declined. Vedanta (down 1.42%), JSW Steel (down 0.11%), Tata Steel (down 0.88%), Steel Authority of India (Sail) (down 0.93%), National Aluminium Company (down 1.31%), Hindustan Zinc (down 0.15%), Jindal Steel & Power (down 0.7%), Hindalco Industries (down 2.63%), NMDC (down 1.04%) and Hindustan Copper (down 0.82%) edged lower.
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