Benchmarks jump amid positive global cues

Key equity indices settled higher, buoyed by positive cues from global markets after the United States and Mexico agreed to overhaul the North American Free Trade Agreement. The barometer index, the S&P BSE Sensex, rose 202.52 points or 0.52% to 38,896.63, as per the provisional closing data. The Nifty 50 index rose 46.55 points or 0.40% to 11,738.50, as per the provisional closing data. Both Sensex and Nifty provisionally ended near their all-time highs hit in early trade.

Indices opened higher and hit fresh intraday high in early trade. Indices pared gains in morning trade. Indices firmed up once again and hovered near the day's high since afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was off 0.35%. The BSE Small-Cap index was up 0.36%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1185 shares rose and 1511 shares fell. A total of 177 shares were unchanged.

Adani Ports & Special Economic Zone (up 2.10%), Reliance Industries (up 2.07%), Vedanta (up 1.97%), Maruti Suzuki India (up 1.88%), HDFC (up 1.60%) and Axis Bank (up 1.39%), were the major Sensex gainers.

Yes Bank (down 3.15%), State Bank of India (down 1.35%), Hindustan Unilever (down 1.24%), ONGC (down 0.99%) and ITC (down 0.69%), were the major Sensex losers.

Jet Airways (India) rose 5.36% after the company declared its Q1 June 2018 result after market hours yesterday, 27 August 2018. Jet Airways (India) reported net loss of Rs 1323 crore in Q1 June 2018 as compared to net profit of Rs 53.50 crore in Q1 June 2017. Total income rose 1.9% to Rs 6066.91 crore in Q1 June 2018 over Q1 June 2017.

Macroeconomic factors led by an increase in Brent fuel price by more than 36%, a depreciating rupee and the resulting mismatch between high fuel prices and low fares primarily undermined Jet Airways' performance in the quarter. Significantly, the board also considered various cost cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets including the company's stake in its loyalty programme.

Overseas, European shares rose after the United States and Mexico reached a trade agreement. Shares in Asia advanced amid hopes global tariff tensions were abating as the United States and Mexico made a deal to overhaul the North American Free Trade Agreement. US stocks gained Monday, with the S&P 500 and the Nasdaq closing at records for a second straight session, as the market rallied on enthusiasm over a new trade deal between the US and Mexico.

On Monday, the United States and Mexico announced that a deal had been agreed upon after months of negotiations between the two countries over the future of the North American Free Trade Agreement. The new deal, which President Donald Trump has said would be called The United States-Mexico Trade Agreement, is expected to last 16 years and will be reviewed every six years pending its approval by Congress, according to US Trade Representative Robert Lighthizer.

On the US data front, a measure of the US economy from the Chicago Federal Reserve slowed in July from June's robust performance, owed in large part to lighter output at the nation's factories. The Chicago Fed's index of national economic activity registered at a positive 0.13 last month, down from an upwardly revised positive 0.48 in June.

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