Indices extend gains

Key indices extended gains and hit fresh intraday high in mid-afternoon trade. At 14:24 IST, the barometer index, the S&P BSE Sensex, was up 550.32 points or 1.55% at 36,141.57. The Nifty 50 index was up 150 points or 1.41% at 10,801.80. Intraday volatility was high due to the F&O contracts expiry of January 2019 series today, 31 January 2019.

The Sensex was currently trading above the psychological 36,000 mark after moving above and below that level in intraday trade. Trading for the day began on a firm note as the key benchmark indices drifted higher in early trade. Stocks held onto gains in morning trade. Strong buying demand in index pivotals propelled the key benchmark indices to intraday high in mid-morning trade. Key indices held firm in early afternoon trade. Stocks extended gains in afternoon trade.

The market sentiment was boosted by data showing that foreign funds and domestic funds, both, were net buyers of Indian stocks yesterday, 30 January 2019. The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 130.25 crore yesterday, 30 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 502.26 crore yesterday, 30 January 2019, as per provisional data.

Investors will focus on interim budget to be announced on Friday, 1 February 2019. The interim budget will be the last one presented by the current NDA government led by Prime Minister Modi, before the 2019 general elections in April. The government is expected to make a host of populist announcements in the budget. It is widely expected that the interim budget may contain tax sops and a certain package for the farm sector. The Budget session of Parliament began today. The session will conclude on 13th of next month.

The S&P BSE Mid-Cap index was up 0.3%. The S&P BSE Small-Cap index was up 0.66%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,324 shares rose and 1,116 shares fell. A total of 142 shares were unchanged.

L&T rose 0.9%. L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen a Toubro, has won two significant orders from Indian Oil Corporation (IOCL). The announcement was made during market hours today, 31 January 2019.

Hero MotoCorp was down 0.38%. Hero MotoCorp will announce its October-December 2018 quarterly result today, 31 January 2019. Hero MotoCorp after market hours yesterday announced setting-up of its first Research and Development (R&D) Center at a global location - the Hero Tech Center Germany GmbH. A wholly-owned subsidiary of Hero MotoCorp - the new Center of technology - located at Stephanskirchen near Munich in Germany - will operate in tandem with Hero's Global R&D hub, the Center of Innovation and Technology (CIT) in Jaipur, in the northern Indian state of Rajasthan.

Dewan Housing Finance Corporation (DFHL) fell 16.12% on reports the government has launched a probe into allegations of financial mismanagement against the company. According to media reports, India's Ministry of Corporate Affairs will look into allegations against DHFL following a report by investigative media outlet Cobrapost.

According to story published on 29 January 2019 by investigative news portal Cobrapost, the primary promoters of DHFL siphoned more than Rs 31,000 crore of public money. The story alleges that the scam was mainly pulled off through grants of loans and advances to shell companies. The same money was then re-routed via these dubious companies and parked outside India so as to acquire assets.

Overseas, European stocks moved higher on Thursday as investors digested comments from the Federal Reserve's latest meeting. Asian stocks edged higher as the Federal Reserve signaled it is putting further interest-rate increases on hold. US stocks rallied to close higher Wednesday, after scoring a boost from solid corporate results and a seemingly accommodative Federal Reserve.

China's official nonmanufacturing purchasing managers index, a measure of activity outside factory gates, rose to 54.7 in January from 53.8 in December, the National Bureau of Statistics said Thursday. An official gauge of China's factory activity unexpectedly inched higher from a near-three-year low. January's official manufacturing purchasing managers' index was up a tick at 49.5 from 49.4 in December, data from the National Bureau of Statistics showed Thursday.

The Fed held rates unchanged at a range of 2.25% to 2.50%, as widely expected, but dropped its longstanding reference to further gradual rate hikes. Instead, it emphasized that it will be patient as it determines what future adjustments to the target range for the federal-funds rate may be appropriate to support these outcomes. The central bank also said it would adjust the rate of its balance-sheet runoff, and may even consider ending it.

Meanwhile, US-China trade talks resumed Wednesday as federal prosecutors accused Huawei of violating US sanctions on Iran and of intellectual property theft which had obviously angered the Chinese government. Huawei has denied the allegations.

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