Market advances on positive global stocks

Market advances on positive global stocks

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Key benchmark indices logged modest gains in a steady session of trade led by index heavyweights Reliance Industries, HDFC and HDFC Bank. The barometer index, the S&P BSE Sensex gained 258.07 points or 0.82% at 31,646.46, as per the provisional closing data. The Nifty 50 advanced 88.35 points or 0.9% at 9,884.40, as per the provisional closing data. Positive global stocks boosted sentiment on domestic bourses.

The Sensex gained 339.59 points or 1.08% at the day’s high of 31,727.98 in early afternoon trade. The index rose 144.63 points or 0.46% at the day’s low of 31,533.02 at the onset of the session. The Nifty gained 113.40 points or 1.16% at the day’s high of 9,909.45 in early afternoon trade, its highest level since 28 August 2017. The index rose 54.75 points or 0.56% at the day’s low of 9,850.80 at the onset of the session.

Domestic stocks saw a gap-up opening triggered by mostly positive Asian stocks. Key indices held firm till early afternoon trade. Stocks trimmed gains in mid-afternoon trade. Indices hovered in the positive zone in late trade.

The S&P BSE Mid-Cap index provisionally rose 1.49%. The S&P BSE Small-Cap index provisionally gained 1.33%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were over two gainers against every loser. On the BSE, 1,783 shares rose and 796 shares fell. A total of 123 shares were unchanged.

The total turnover on BSE amounted to Rs 2468.65 crore, lower than the turnover of Rs 3695.71 crore registered during the previous trading session.

Reliance Industries gained 2.16% to Rs 1,564.85 after the company proposed to make an offer for the issuance of non-convertible debentures (NCDs series B) (2nd tranche) on private placement basis on Friday, 1 September 2017 aggregating Rs 2500 crore, to be listed on the Stock Exchanges. The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and for any other purpose in the ordinary course of business. The announcement was made after market hours yesterday, 29 August 2017.

Metal and mining stocks were in demand. Vedanta (up 2.14%), JSW Steel (up 5.28%), Tata Steel (up 1.17%), Steel Authority of India (Sail) (up 0.98%), National Aluminium Company (up 2.14%), Hindustan Zinc (up 3.84%), Jindal Steel & Power (up 4.3%), Hindalco Industries (up 3.93%), NMDC (up 3.61%) and Hindustan Copper (up 1.79%) edged higher.

Copper edged lower in the global commodities market. High-Grade Copper for December 2017 delivery was currently off 0.18% at $3.0985 per pound on the COMEX.

Overseas, European stocks were trading higher as investors tried to oust any nerves surrounding North Korea tensions and took advantage of the positive sentiment seen overseas. Asian stocks edged higher after US President Donald Trump’s measured response to North Korean missile launches and comments from Kim Jong Un suggested geopolitical tensions will ease off.

In economic news, Japan’s retail sales growth slowed in July as shoppers spent less on clothes and cars. Retail sales rose 1.9% in July from a year ago but still slower than a revised 2.2% increase in the year to May.

US stock benchmarks yesterday, 29 August 2017 staged a recovery from heavy selling earlier in the session that came after a North Korean missile test over Japanese airspace rattled investors and sent Wall Street trawling for assets perceived as safe. North Korea had fired a ballistic missile over Japan yesterday, 29 August 2017 in an act the latter called an unprecedented, grave and serious threat.

In economic news, consumers confidence in US strengthened in August to the second highest level since late 2000, a survey released showed. The consumer confidence index rose to 122.9, up from 120 in the prior month, the Conference Board said.

Source capitalmarket.com
Via capitalmarket.com

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