Key benchmarks pare intraday gains

Key benchmark indices pared gains in mid-morning trade as profit booking emerged at higher levels. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 78.80 points or 0.25% at 32237.46. The Nifty 50 index was up 15.35 points or 0.15% at 10,108.40.

The Sensex hit its highest levels in more than five weeks in morning trade. The Nifty hit its highest levels in more than six weeks in morning trade. The Sensex rose 99.62 points, or 0.31% at the day's high of 32,258.28 in morning trade, its highest intraday level since 8 August 2017. The index fell 20.95 points, or 0.07% at the day's low of 32,137.71 in early trade. The Nifty rose 27.65 points, or 0.27% at the day's high of 10,120.70 in morning trade, its highest intraday level since 2 August 2017. The index fell 9 points, or 0.09% at the day's low of 10,084.05 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.48%. The BSE Small-Cap index was up 0.46%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,239 shares rose and 1,026 shares fell. A total of 131 shares were unchanged.

Most FMCG shares rose. Godrej Consumer Products (up 1.20%), Marico (up 0.61%), GlaxoSmithKline Consumer Healthcare (up 0.47%), Dabur India (up 0.41%), Colgate Palmolive (India) (up 0.33%), Procter & Gamble Hygiene & Health Care (up 0.33%), Britannia Industries (up 0.13%), Hindustan Unilever (up 0.11%) and Bajaj Corp (up 0.01%), edged higher. Nestle India (down 0.29%), Tata Global Beverages (down 0.35%) and Jyothy Laboratories (down 0.88%), edged lower.

Cement shares were mixed. ACC (up 0.43%) and Ambuja Cements (up 0.23%), edged higher. UltraTech Cement was down 0.78%.

Grasim Industries was down 0.59%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

S H Kelkar and Company gained 2.58% after the company announced that its board of directors approved acquisition of VN Creative Chemicals. The announcement was made after market hours yesterday, 12 September 2017.

VN Creative Chemicals (VNCC) is into the business of aromatic chemicals and has acquired MIDC leasehold land at Mahad in Maharashtra alongwith manufacturing facility constructed theron for Rs 13.59 crore. The purpose of acquisition is to acquire control of land and manufacturing facility owned by VNCC. The investment is part of the earlier envisaged strategic cost saving initiative in the overseas fragrance division, which will allow the company greater flexibility in backend manufacturing operations and leverage its existing presence in a low cost and high quality centre like India.

The company expects to execute the initiative by end of this fiscal and showcase higher operational efficiency in the fragrance division from FY 2018-19 onwards. VNCC has been incorporated recently and is yet to commence business operations. VNCC acquisition is targeted to close in September 2017. The acquisition would be acquiring 100% share capital at face value to be paid in cash. Requisite approvals and consents in connections with the acquisition have been obtained.

Indian Hume Pipe Company lost 2.86% after net profit fell 23% to Rs 19.86 crore on 27.4% growth in net sales to Rs 544.51 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 12 September 2017.

On macro front, India's industrial production rose 1.2% in July 2017 over July 2016, while snapping 0.2% decline for June 2017. The growth for June 2017 has been revised downwards to -0.2% from -0.1% reported earlier. The data was unveiled after market hours yesterday, 12 September 2017.

The all-India general consumer price index (CPI)-based inflation accelerated to 3.36% in August 2017, compared with 2.36% in July 2017. The data was unveiled after market hours yesterday, 12 September 2017.

Overseas, most Asian stocks were trading lower. All three major US stock indexes booked all-time closing highs on Tuesday, 12 September 2017. It marks the first time all three benchmarks finished at records on the same day since 26 July 2017. The Dow Jones Industrial Average rose 61.49 points, or 0.3%, to finish at 22,118.86. The S&P 500 added 8.37 points, or 0.3%, to close at 2,496.48. The Nasdaq Composite Index finished up 22.02 points, or 0.3%, at 6,454.28.

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