Market extends gains

Key benchmark indices extended gains and hit fresh intraday high in morning trade bucking weak trend in Asian stocks. At 10:20 IST, the barometer index, the S&P BSE Sensex, rose 132.88 points or 0.39% at 34,905.10. The Nifty 50 index advanced 29.15 points or 0.27% at 10,729.60. Gains were led by the spurt in IT stocks for the second day in a row.

Among the secondary indices, the S&P BSE Mid-Cap index fell 0.34%. The S&P BSE Small-Cap index dropped 0.78%. Both these indices underperformed the Sensex.

Broad market depicted weakness. There were more than two losers for every gainer on BSE. 1,753 shares declined and 703 shares rose. A total of 105 shares were unchanged.

IT stocks gained for the second straight day. Tech Mahindra (up 0.41%), HCL Technologies (up 1.08%), TCS (up 1.99%), and Infosys (up 2.15%) edged higher. Wipro fell 0.45%.

Euphoria in large cap IT stocks was mostly led by foreign brokerage's prediction that Indian IT services stocks could be set for a turnaround in 2018. An improving global economy could spur tech spending, which could lead to a re-rating of IT stocks.

From the upcoming union budget on 1 February 2018, the IT industry has been reportedly seeking that adjustments to past years' income emanating from advance price agreements (APAs) should be recognised as income of those years itself. Besides, equalisation levy should be treated as tax on income and be eligible for tax credit in a foreign country to the overseas online ad businesses. The industry is also seeking an extension in the exemptions granted to STP units in relation to procurements, as it used to be before the GST rollout.

Telecom stocks were mixed. Reliance Communications (down 0.64%), Tata Teleservices (Maharashtra) (down 4.96%) and Idea Cellular (down 0.73%) declined. Bharti Airtel rose 0.24%.

Shares of Bharti Infratel gained 1.38%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Ipca Laboratories rose 2.36% after the company announced acquisition of US-based Pisgah Labs Inc. The announcement was made during trading hours today, 17 January 2018.

Ipca Laboratories announced the acquisition of 100% share capital of Pisgah Labs Inc., a North Carolina Corporation, Old Hendersonville Highway, Pisgah Forest, North Carolina, USA (Pisgah). The acquisition was done by Ipca Pharmaceutical Inc., USA (the company's wholly owned subsidiary) and Onyx Scientific, UK (Onyx) (the company's wholly owned step down subsidiary) for $9.65 million free of debt.

Pisgah Labs Inc., North Carolina, USA was originally founded in the year 1981 as a contract manufacturer and developer of active pharmaceutical ingredients (APls) and intermediates.

Gravita India rose 1.59% after the company said that it has received orders worth Rs 250 crore from Luminous Power Technologies. The announcement was made during trading hours today, 17 January 2018. Gravita India said that the order will help the company to strengthen its top line and bottom line in financial year ending March 2019. The said order will be executed during 2018.

Overseas, Asian stocks stepped back from a record high as the region's resource shares were dented by falling oil and commodity prices while digital currencies tumbled on worries about tighter regulations.

Japanese orders for machinery surged to their highest level in a decade in November. Cabinet Office data showed core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, grew 5.7% in November from the previous month.

US benchmark indices pulled back from lifetime highs set earlier in the session to end mostly lower yesterday, 16 January 2018, on likely profit booking amid concerns over the possibility of a government shutdown. On the data front, the Empire State manufacturing survey slipped to 17.7 in January from a revised 19.6 in December, the New York Fed said.

Powered by Capital Market - Live News