Capital goods stocks gain

Stocks extended gains and hit fresh intraday high in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 303.13 points or 0.8% at 38,251.01. The Nifty 50 index was up 71.85 points or 0.63% at 11,542.60. The Sensex and the Nifty, both, scaled fresh record high. Capital goods stocks edged higher. Positive Asian stocks boosted sentiment on domestic bourses.

Domestic stocks drifted higher in early trade, with the Sensex and the Nifty, both, scaling record high.

The S&P BSE Mid-Cap index was up 0.68%, outperforming the Sensex. The S&P BSE Small-Cap index was up 0.39%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1331 shares rose and 729 shares fell. A total of 121 shares were unchanged.

Overseas, Asian stocks rose following a higher finish on Wall Street last Friday as investors awaited developments on proposed US-China trade talks, while keeping a wary eye on the Chinese yuan and Turkish lira. US stocks rose on Friday on strength in technology hardware shares and optimism for a resolution in America's trade dispute with China.

Back home, capital goods stocks edged higher. GE T&D India (up 1.12%), ABB India (up 0.59%), Bharat Heavy Electricals (Bhel) (up 1.22%), BEML (up 0.27%), Bharat Electronics (up 0.47%), Punj Lloyd (up 0.35%) and Siemens (up 0.31%) gained. Thermax (down 0.05%) fell.

Larsen & Toubro (L&T) gained 5.93% after the company announced that its board will meet on 23 August 2018, to consider a proposal for buyback of equity shares of the company. The announcement was made on Saturday, 18 August 2018.

CG Power and Industrial Solutions (CG) rose 1.26% after the company entered into a strategic alliance agreement with TENAGA Switchgear Sdn. Bhd., Malaysia (TSG) to leverage each company's unique strengths and assets to expand market reach and enhance customer base in Southeast Asia-Pacific (SEAP), particularly Malaysia. The alliance further cements the existing strong bond between CG and TSG where CG is already a key partner to Tenaga Switchgear on power transformers and circuit breakers.

The agreement between the companies includes product development and promotion of 11 kV Gas Insulated Switchgear (GIS) in Malaysia to address the rapidly growing demand in this region. As per the agreement, both the companies will collaborate in the Malaysian market. The announcement was made after market hours on 17 August 2018.

Mangalore Chemicals & Fertilizers jumped 9.76% after the company announced that, Ministry of Environment, Forest and Climate Change (MoEF&CC), Government of India, vide its letter dated 14 August 2018, has accorded the Environmental Clearance (EC) to the project for expansion cum modernisation of a fertilizer plant. The announcement was made after market hours on 17 August 2018.

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