Key benchmarks extend gains

Key benchmark indices extended gains and hit fresh intraday high in morning trade. At 10:19 IST, the barometer index, the S&P BSE Sensex, was up 106.70 points or 0.34% at 31,877.59. The Nifty 50 index was up 35.05 points or 0.35% at 9,932.35. Indian shares mirrored gains in other Asian stocks after US Federal Reserve meeting minutes reduced the odds of another US interest rate increase this year.

The Sensex and the Nifty, both, hit their highest levels in more than one week. The Sensex rose 166.62 points, or 0.52% at the day's high of 31,937.51 in morning trade, its highest level since 9 August 2017. The index rose 12.93 points, or 0.04% at the day's low of 31,783.82 in early trade. The Nifty rose 50.50 points, or 0.51% at the day's high of 9,947.80 in morning trade, its highest level since 9 August 2017. The index rose 3.10 points, or 0.03% at the day's low of 9,900.40 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.57%. The BSE Small-Cap index was up 0.99%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,426 shares rose and 547 shares fell. A total of 73 shares were unchanged.

HDFC Bank was down 0.47% to Rs 1,772.05. The bank during trading hours today, 17 August 2017, announced a revision in its savings bank interest rate effective 19 August 2017. Post revision, customers maintaining savings bank account balance of Rs 50 lakh and above will continue to earn interest at 4% per annum. Customers maintaining account balance of below Rs 50 lakh will earn interest at 3.5% per annum. The revised rates will be applicable to both resident and non-resident customers.

Infosys rose 3.49% to Rs 1,010.85 after the company announced that its board of directors will consider a proposal for buyback of equity shares at a meeting scheduled on 19 August 2017. The announcement was made after market hours yesterday, 16 August 2017.

Metal shares were in demand. Vedanta (up 3.11%), Hindustan Zinc (up 2.53%), NMDC (up 2.02%), Hindalco Industries (up 1.73%), Steel Authority of India (up 1.69%), Hindustan Copper (up 1.67%), National Aluminium Company (up 1.66%), Jindal Steel & Power (up 1.01%), Tata Steel (up 0.63%) and JSW Steel (up 0.27%), edged higher. Bhushan Steel was down 1.84%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.68% at $2.9735 per pound on the COMEX.

FMCG shares were mixed. Bajaj Corp (up 1.20%), Marico (up 0.41%), Procter & Gamble Hygiene & Health Care (up 0.38%), Britannia Industries (up 0.34%), Nestle India (up 0.31%) and Godrej Consumer Products (up 0.19%), edged higher. Dabur India (down 0.06%), Tata Global Beverages (down 0.23%), Colgate Palmolive (India) (down 0.41%), GlaxoSmithKline Consumer Healthcare (down 0.73%), Jyothy Laboratories (down 0.98%) and Hindustan Unilever (down 1.38%), edged lower.

Overseas, most Asian markets edged higher after a rally in the dollar was halted on political turbulence while investors digested the release of the Federal Reserve's minutes.

In US, shares closed slightly higher on Wednesday, 16 August 2017, but backlash from the business community against President Donald Trump kept gains in check. The S&P 500 gained 0.14% to close at 2,468.11. The Dow Jones industrial average closed 0.12% higher at 22,024.87. The Nasdaq composite advanced 0.19% to 6,345.11.

US President Donald Trump unexpectedly said on Wednesday, 16 August 2017, he was disbanding two advisory councils comprising prominent business executives. The move came after several members of Trump's Strategic and Policy Forum and Manufacturing Jobs Initiative councils stepped down following the president's Tuesday press conference in which the president blamed "both sides" for violence at a white nationalist rally in Virginia.

Minutes from the Federal Open Market Committee's July meeting released on Wednesday, 16 August 2017, also supported the move lower in the greenback. While some Fed members said they were worried over the tightening labor market, others voiced their concern over low inflation rates in the US. The minutes also showed the central bank was prepared to trim its massive balance sheet, although the announcement of a start date was left for an upcoming meeting.

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