Trading for the week started on a buoyant note as key indices settled with noteworthy gains as firmness in global stocks perked up sentiment. The barometer index, the S&P BSE Sensex rose 294.71 points or 0.87% to settle at 34,300.47. The Nifty 50 index gained 84.80 points or 0.81% to settle at 10,539.75. Trading in US index futures indicating Dow could jump at the open today also boosted sentiment.
Key banking stocks advanced. State Bank of India, however, declined after reporting net loss in Q3. BPCL dropped after reporting weak Q3 results. ONGC and Tata Steel advanced after declaring impressive October-December 2017 quarterly earnings.
The market opened higher on firm global cues. Key indices held steady in morning trade after paring initial gains. Stocks held firm till mid-afternoon trade. Strong European stocks further perked up stocks as indices extended gains and hit fresh intraday highs in late trade. The Indian stock market will remain shut tomorrow, 13 February 2018, on account of Mahashivratri.
The Sensex rose 294.71 points or 0.87% to settle at 34,300.47, its highest closing level since 8 February 2018. The index advanced 345.58 points, or 1.02%, at the day`s high of 34,351.34. The index gained 109.36 points, or 0.32%, at the day`s low of 34,115.12.
The Nifty gained 84.80 points or 0.81% to settle at 10,539.75, its highest closing level since 8 February 2018. The index surged 100.55 points, or 0.96%, at the day`s high of 10,555.50. The index rose 30.45 points, or 0.29%, at the day`s low of 10,485.40.
Among secondary indices, the S&P BSE Mid-Cap index rose 1.31%. The S&P BSE Small-Cap index gained 1.6%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. There were more than two gainers for every loser. On the BSE, 2,033 shares advanced and 770 shares declined. A total of 175 shares were unchanged.
The total turnover on BSE amounted to Rs 4715.65 crore, compared with the turnover of Rs 4044.42 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 1.18%), the BSE Auto index (up 1.06%), the BSE Capital Goods index (up 1.65%), the BSE Metal index (up 1.01%), the BSE Power index (up 1.87%) and the BSE Realty index (up 1.73%) outperformed the Sensex. The BSE IT index (down 0.43%), the BSE Telecom index (up 0.58%) and the BSE Bankex index (up 0.68%) underperformed the Sensex.
Key bank stocks advanced. Among public sector banks, Bank of Baroda (up 7.83%), Punjab National Bank (up 3.09%), Bank of India (up 1.61%) and IDBI Bank (up 7.64%) surged.
State Bank of India (SBI) fell 2.67% after the bank announced weak Q3 results after market hours on Friday, 9 February 2018. SBI reported net loss of Rs 2416.37 crore in Q3 December 2017 as against net profit of Rs 2610 crore in Q3 December 2016. Total income rose 17.4% to Rs 62887.06 crore in Q3 December 2017 over Q3 December 2016.
In a separate announcement after market hours on Friday, 9 February 2018, SBI said that its Central board approved issuing equity shares of face value of Re 1 each, ranking pari-passu with the existing equity shares of the bank in all respect including payment of dividend, by way of preferential issue to the Government of India (GoI), not exceeding Rs 8800 crore.
Among private sector banks, Yes Bank (up 2.89%), IndusInd Bank (up 2.12%), HDFC Bank (up 1.48%), Kotak Mahindra Bank (up 1.15%) and Axis Bank (up 0.95%) gained. ICICI Bank (down 0.23%) declined.
Lupin gained 2.24% after the company announced the launch of its Oseltamivir Phosphate Capsules, USP having received an approval from the United States Food and Drug Administration (USFDA) earlier. It is indicated for the treatment of acute, uncomplicated influenza A and B in patients 2 weeks of age and older who have been symptomatic for no more than 48 hours, and prophylaxis of influenza A and B in patients 1 year and older.
Separately, Lupin announced during market hours today, 12 February 2018, that it has received tentative approval for its Hydrocortisone Butyrate Lotion, 0.1% from the United States Food and Drug Administration (USFDA) to market a generic version of Precision Dermatology, Inc.`s Locoid Lotion, 0.1%. It is indicated for the topical treatment of mild to moderate atopic dermatitis in patients 3 months of age and older.
BPCL fell 1.95% after net profit declined 5.6% to Rs 2143.74 crore on 13.2% rise in net sales to Rs 60616.36 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 9 February 2018.
Mahindra & Mahindra (M&M) was down 0.43%. The company`s net profit rose 12.5% to Rs 1215.91 crore on 4.6% rise in net sales to Rs 11577.78 crore in Q3 December 2017 over Q3 December 2016. The results were announced after market hours on Friday, 9 February 2018.
In its outlook, M&M said that a balanced and pro-agrarian budget should help prop farm incomes and stimulate rural consumption demand and further nurture the green shoots of economic recovery. With the effects of some of the recent transient factors fading away and the economy adjusting to GST implementation, growth momentum is likely to stay buoyant. However, rising global crude oil prices and any sudden asset market stall pose key risks to the outlook.
ONGC rose 1.65% after net profit rose 15.2% to Rs 5014.67 crore on 14.9% rise in net sales to Rs 22995.88 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 9 February 2018.
In a separate announcement on Saturday, 10 February 2018, ONGC announced that ONGC Videsh-led Indian consortium has been awarded 10% stake in Lower Zakum Concession, Offshore Abu Dhabi. The Indian consortium would contribute a sign-up bonus of $600 million to enter the concession for a 10% stake. The concession has a term of 40 years with an effective date of 9 March 2018.
The present transaction marks entry of ONGC Videsh in highly prospective UAE region and is consistent with its stated strategic objective of adding high quality producing assets to its existing E&P portfolio.
Coal India dropped 0.08%. The company`s consolidated net profit rose 4.21% to Rs 3004.79 crore on 4.42% rise in total income to Rs 22484.14 crore in Q3 December 2017 over Q3 December 2016. Te result was announced on Saturday, 10 February 2018.
Tata Steel rose 4.22% after consolidated net profit surged 389.83% to Rs 1135.92 crore on 20.05% rise in net sales to Rs 33099.95 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 9 February 2018.
On the macroeconomic data front, the government will announce inflation data based on consumer price index (CPI) for January 2018 after market hours today, 12 February 2018. Consumer prices rose 5.21% in December 2017 over December 2016.
The government will also announce industrial production data for December 2017 after market hours today, 12 February 2018. India`s industrial production rose sharply by 8.4% in November 2017 over November 2016.
Meanwhile, the provisional figures of direct tax collections up to January 2018 showed that net collections are at Rs 6.95 lakh crore which is 19.3% higher than the net collections for the corresponding period of last year. The net direct tax collections represent 69.2% of the revised estimates of direct taxes for FY 2018 (Rs 10.05 lakh crore). Gross collections (before adjusting for refunds) have increased by 13.3% to Rs 8.21 lakh crore during April 2017 to January 2018. Refunds amounting to Rs 1.26 lakh crore have been issued during April 2017 to January 2018.
Overseas, European registered strong gains, erasing part of their sizable monthly loss. Asian stocks gained after a late-day rally on Wall Street on Friday, 9 February 2018, as investors fretted about the risks from looming US inflation data. Japanese markets are closed today in observance of a public holiday.
Trading in US index futures indicated that the Dow could jump 273 points at the opening bell today, 12 February 2018.
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