Market holds firm

Key benchmark indices held firm in mid-afternoon trade led by buying demand in index heavyweights ITC, Reliance Industries and HDFC Bank. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 306.47 points or 0.83% at 37,291.11. The Nifty 50 index was up 92.85 points or 0.83% at 11,260.15. Most auto stocks rose. Positive global stocks boosted sentiment on the domestic bourses.

Key benchmark indices saw a gap-up opening triggered by positive Asian stocks. Stocks extended gains in morning trade. Stocks held firm for later part of the day's trading session. The Sensex and the Nifty, both, scaled fresh record high in intraday trade.

The S&P BSE Mid-Cap index was up 1.07%. The S&P BSE Small-Cap index was up 1.08%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1602 shares rose and 870 shares fell. A total of 159 shares were unchanged.

Tata Steel (up 2.36%), Axis Bank (up 2.18%), Reliance Industries (up 2.01%), ICICI Bank (up 1.94%) and Hero MotoCorp (up 1.91%) edged higher from the Sensex pack.

ITC gained 4.68% to Rs 300.60. The company's net profit rose 10.1% to Rs 2818.68 crore on 6.9% increase in net sales to Rs 10554.66 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 26 July 2018.

Most auto stocks rose. Escorts (up 2.17%), Bajaj Auto (up 2.17%), Hero MotoCorp (up 2.19%), TVS Motor Company (up 0.52%), Eicher Motors (up 1.87%) and Ashok Leyland (up 0.8%) gained. Maruti Suzuki India (down 0.63%) and Mahindra & Mahindra (M&M) (down 0.61%) fell.

Tata Motors gained 3.83%. The company during market hours today, 27 July 2018 said that S & P Global Ratings, the credit rating of the company and its wholly owned subsidiary has been downgraded. The rating of Tata Motors is downgraded due to weakening operating conditions for Jaguar Land Rover (JLR). The rating of Jaguar Land Rover Automotive Plc (JLRs Wholly owned subsidiary) is downgraded due to weakening operating conditions.

Overseas, European shares were trading higher Friday as traders monitored new corporate earnings. Most Asian stocks edged higher following a series of steps by China shifting to stimulus mode. Investors are awaiting the second-quarter US GDP report due later in the day.

The European Central Bank (ECB) left interest rates unchanged and affirmed its plan to end its monthly bond-buying program in December, as had been expected. In addition, ECB President Mario Draghi said that uncertainty around the inflation outlook was receding.

US stocks closed mostly lower on Thursday, weighed down by sharp losses in technology shares as Facebook posted its biggest one-day drop ever following disappointing quarterly results. Investors cheered Wednesday's upbeat meeting between Trump and the European Commission's president.

In economic data, the US trade deficit in goods widened to $68.3 billion in June, up 5.5% or $3.6 billion, according to the Commerce Department's advanced estimate released Thursday.

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