The market ended with strong gains as positive global cues boosted investors sentiment. Investors` risk appetite also improved after data showed inflation eased in August, increasing the likelihood that the central bank will keep interest rates on hold in October. The Sensex ended above the psychologically important 38,000 mark.
The Sensex surged 372.68 points or 0.99% to settle at 38,090.64, its highest closing level since 7 September 2018. The index rose 407.66 points, or 1.08% at the day`s high of 38,125.62. The index rose 141.56 points, or 0.38% at the day`s low of 37,859.52.
The Nifty 50 index advanced 145.30 points or 1.28% to settle at 11,515.20, its highest closing level since 7 September 2018. The index rose 153.35 points, or 1.35% at the day`s high of 11,523.25. The index rose 60.65 points, or 0.53% at the day`s low of 11,430.55.
Among secondary barometers, the BSE Mid-Cap index rose 1.62%. The BSE Small-Cap index rose 1.38%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1825 shares rose and 832 shares fell. A total of 174 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Realty index (up 3.29%), the S&P BSE Basic Materials index (up 2.66%), the S&P BSE Power index (up 2.55%), the S&P BSE Consumer Durables index (up 2.26%), the S&P BSE Metal index (up 2.26%), the S&P BSE Utilities index (up 2.26%), the S&P BSE Oil & Gas index (up 2.09%), the S&P BSE Healthcare index (up 1.91%), the S&P BSE Finance index (up 1.70%), the S&P BSE Telecom index (up 1.63%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.37%), the S&P BSE Bankex (up 1.20%) and the S&P BSE Auto index (up 1.18%), outperformed the Sensex. The S&P BSE Industrials index rose 0.99%, matching the Sensex`s gain in percentage terms. The S&P BSE Energy index (up 0.83%), the S&P BSE Capital Goods index (up 0.82%), the S&P BSE FMCG index (up 0.59%), the S&P BSE Teck index (up 0.17%) and the S&P BSE IT index (up 0.01%), underperformed the Sensex.
Power Grid Corporation of India (up 3.31%), Asian Paints (up 3.04%), NTPC (up 3%), Yes Bank (up 2.75%), HDFC (up 2.70%) and ONGC (up 2.61%), were the major Sensex gainers.
Coal India (down 1.42%) and Infosys (down 1.01%), edged lower.
Banks were in demand. Among private sector banks, Yes Bank (up 2.75%), IndusInd Bank (up 2.65%), RBL Bank (up 2.17%), Federal Bank (up 1.90%), ICICI Bank (up 1.56%), Kotak Mahindra Bank (up 0.59%), HDFC Bank (up 0.53%) and Axis Bank (up 0.11%), edged higher. City Union Bank fell 0.30%.
Among public sector banks, Syndicate Bank (up 3.81%), Union Bank of India (up 2.89%), Andhra Bank (up 2.43%), Allahabad Bank (up 2.14%), Bank of India (up 2.14%), UCO Bank (up 2.07%), Punjab National Bank (up 1.84%), State Bank of India (up 1.73%), Canara Bank (up 1.60%), IDBI Bank (up 1.39%), Central Bank of India (up 1.29%), Bank of Maharashtra (up 0.96%), Bank of Baroda (up 0.79%), Indian Bank (up 0.61%), Vijaya Bank (up 0.59%), Punjab & Sind Bank (up 0.51%), Dena Bank (up 0.31%) and Corporation Bank (up 0.19%), edged higher. United Bank of India fell 0.09%.
Vedanta rose 5.25%. The company notified on 13 September 2018, the management committee, Ministry of Petroleum and Natural Gas and Directorate General of Hydrocarbons (DGH) of a hydrocarbon Discovery in well A3-2 within its operated block KG-OSN-2009/3 within Krishna-Godavari Basin, East Coast of India. Vedanta holds 100% participating interest in the block. A3-2 is the first exploration well drilled within the KG-OSN-2009/3 block. Multiple reservoir zones were encountered in the Mesozoic rift formation between the depths of 3351-3944m MDBRT with indications of hydrocarbon during drilling and formation evaluations. Down hole formation tester (MDT) sampled oil and gas from the zones of interest. The zone from 3610-3715m MDBRT flowed gas to surface during well testing. Further appraisal will be required to assess the potential commerciality of this Mesozoic rift discovery.
On the data front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 4.53% (provisional) for the month of August 2018 (over August 2017) as compared to 5.09% (provisional) for the previous month and 3.24% during the corresponding month of the previous year. The data was unveiled during trading hours today, 14 September 2018.
The all-India general consumer price inflation (CPI) inflation dipped 3.69% in August 2018 (new base 2012=100), compared with 4.17% in July 2018. The corresponding provisional inflation rate for rural area was 3.41% and urban area 3.99% in August 2018 as against 4.11% and 4.32% in July 2018. The core CPI inflation declined to 5.90% in August 2018 compared with 6.29% in July 2018. The data was announced after market hours on Wednesday, 12 September 2018.
India`s industrial production (base year 2011-12=100) growth remained nearly flat and healthy at 6.6% in July 2018, compared with 6.9% growth recorded in June 2018. The industrial production growth for June 2018 has been revised marginally downwards from 7% increase reported provisionally. The data was announced after market hours on Wednesday, 12 September 2018.
Overseas, European stocks were trading higher Friday, after an unexpectedly sharp interest rate hike in crisis-hit Turkey supported the lira and global risk appetite. Turkey`s central bank moved to support a tumbling lira on Thursday, lifting interest rates by 625 basis points to 24%.
Asia markets ended higher. The gains, however, were tampered by enduring concerns around trade following a tweet from US President Donald Trump.
Trump said on Thursday that Washington was under no pressure to make a deal with China, they are under pressure to make a deal with us. He added that the US will soon be taking in billions in tariffs & making products at home.
Trump`s response came after reports on Wednesday said the US was seeking to restart trade negotiations with China as the two economic powerhouses remain locked in conflict with no resolution in sight.
Meanwhile, China reported better-than-expected industrial output and retail sales on Friday, but a key investment gauge fell to a fresh record low. Industrial output rose 6.1% in August from a year earlier, the National Bureau of Statistics (NBS) said, a tick bettr than July. But production of key goods including motor vehicles and transport equipment actually fell. Output of cars barely grew, while crude steel production increased by just a third of the pace in the previous month. Retail sales rose 9% on-year. Fixed-asset investment growth slowed to 5.3% in January-August from the same period a year earlier, weighed down once again by slowing infrastructure growth.
US stocks closed higher Thursday, with the S&P 500 up for a fourth straight session on the back of strong technology shares. News that China may be receptive to overtures from the US on new talks also soothed trade-related jitters.
On the US data front, the consumer-price index rose by 0.2% in August, its fifth straight increase. Separately, initial jobless claims fell slightly in the latest week, coming in at a 49-year low.
Meanwhile, the European Central Bank (ECB) made no change on interest rates, and repeated that it does not expect any changes until summer 2019 at least as it remains on track to end its bond-buying program in December. The ECB slightly trimmed its GDP growth forecasts for both 2018 and 2019, and ECB President Mario Draghi said that risks to the euro area`s growth outlook were broadly balanced.
In the global commodities markets, Brent for November 2018 settlement was up 8 cents at $78.26 a barrel. The contract had fallen $1.56 a barrel or 1.96% to settle at $78.18 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.96, compared with its close of 72.185 during the previous trading session.
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