Volatility continued as key benchmark indices cut losses in afternoon trade soon after reversing intraday gains in early afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was down 59.55 points or 0.16% at 36,460.41. The Nifty 50 index was down 7.45 points or 0.07% at 11,000.60. The Nifty was currently trading a tad above the psychologically important 11,000 mark after sliding below that level in early afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.88%. The BSE Small-Cap index was down 0.59%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 853 shares rose and 1530 shares fell. A total of 118 shares were unchanged.
ONGC (up 5.32%), HDFC (up 1.21%) and Bajaj Auto (up 0.94%) edged higher from the Sensex pack.
Tata Steel (down 4.63%), Tata Motors (down 2.52%), Vedanta (down 2.38%), Hindustan Unilever (down 2.14%) and Axis Bank (down 1.82%) edged lower from the Sensex pack.
HDFC Bank rose 0.89% to Rs 2,196.10. The stock hit a record high of Rs 2,219.05 in intraday trade today, 18 July 2018. HDFC Bank said that the bank allotted 3.90 crore shares to HDFC by way of the preferential allotment at Rs 2,174.09 per share, aggregating to Rs 8500 crore. The announcement was made after market hours yesterday, 17 July 2018.
Kridhan Infra gained 6.58% after the company announced that its associate Vijay Nirman Company (VNC) has been awarded a new project worth Rs 222.6 crore for rehabilitation and upgradation of the NH 167 in a joint venture in which it holds 51%. The announcement was made after market hours yesterday, 17 July 2018.
On the political front, the Monsoon Session of Parliament began today, 18 July 2018 and will conclude on 10 August 2018. The Session will provide a total of 18 sittings spread over a period of 24 days. Government has listed a substantive legislative business for the session. This includes 48 items, including 46 Bills and two financial matters. The bills prioritised by the government include The Muslim Women (Protection of Rights on Marriage) Bill or the anti-instant triple talaq bill and The Constitution (123rd Amendment) Bill, that gives Constitutional status to the National Commission for Backward Classes.
Overseas, European shares rose helped by a rally in tech stocks following well-received earning updates from equipment maker Ericsson. Most Asian shares were trading higher, tracking overnight gains in the US market following upbeat remarks from Federal Reserve Chairman Jerome Powell during his congressional testimony.
US stocks closed higher on Tuesday, extending a recent upswing after Fed's Powell indicated the US central bank would not move too quickly in changing monetary policy, and that it would be flexible in the face of changing conditions. Traders also digested the latest round of corporate earnings, which came in mixed but nevertheless showed strong growth.
Appearing in front of the Senate Banking Committee, Powell said the best way forward is to keep gradually raising the federal-funds rate for now. In a cautious note, however, Powell said that it is difficult to predict the ultimate outcome of current discussions over trade policy as well as the size and timing of the economic effects of the recent changes in fiscal policy.
On the US data front, industrial production rose 0.6% in June to more than offset a similarly sized decline in May. The National Association of Home Builders' monthly confidence index was unchanged at 68 in July.
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