Market registers modest gains

Key benchmark indices registered modest gains supported by impressive gains in index pivotals HDFC Bank, Reliance Industries, ITC and Infosys. The barometer index, the S&P BSE Sensex, rose 216.98 points or 0.68% at 32,245.87, as per the provisional closing data. The Nifty 50 index advanced 51.15 points or 0.52% at 9,966.40, as per the provisional closing data. Both the Sensex, and the Nifty, hit record high.

Key indices opened on a positive note and later traded firm in positive terrain throughout the trading session. A latest report from the International Monetary Fund (IMF), in which it projected India's growth at 7.7% in 2018 propped up investors' risk-on sentiment.

Market has also got a boost from the reported comments by NITI Aayog Vice Chairman Arvind Panagariya that India is likely to clock a 7.5% economic growth in FY 2018.

The Sensex advanced 291.97 points or 0.91% at the day's high of 32,320.86 in mid-afternoon trade, a record high. It rose 29.44 points or 0.09% at the day's low of 32,058.33 in early trade.

The Nifty advanced 66.80 points or 0.67% at the day's high of 9,982.05 in mid-afternoon trade, a record high. It rose 4.35 points or 0.04% at the day's low of 9,919.60 in early trade.

Among secondary barometers, the S&P BSE Mid-Cap index provisionally rose 0.27%. The S&P BSE Small-Cap index provisionally advanced 0.27%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,401 shares declined and 1,329 shares rose. A total of 179 shares were unchanged.

The total turnover on BSE amounted to Rs 3724.99 crore, lower than turnover of Rs 4837.54 crore registered during the previous trading session.

Telecom stocks were mixed. Bharti Airtel (up 2.01%) and Reliance Communications (up 2.27%) edged higher. Idea Cellular (down 0.11%) declined.

Bharti Infratel was down 0.72%. The company is scheduled to announce Q1 June 2017 results today, 24 July 2017.

Lupin was up 0.09% after the company announced that it has received final approval for its Fluocinonide Topical Solution USP, 0.05% from the United States Food and Drug Administration (USFDA) to market a generic version of County Line Pharmaceuticals, LLC's Fluocinonide Topical Solution USP, 0.05%. Lupin's Fluocinonide Topical Solution USP, 0.05% is indicated for the relief of the inflammatory and prutitic manifestations of corticosteroid-responsive dermatoses. The announcement was made during market hours today, 24 July 2017.

Reliance Industries (RIL) advanced 2.13% at Rs 1,620 after the company announced the launch of JioPhone, a 4G VoLTE-enabled feature phone, at an effective price of Rs zero. RIL held its 40th annual general meeting (AGM) on Friday, 21 July 2017. RIL Chairman Mukesh Ambani announced the launch of JioPhone, which is a 4G VoLTE-enabled feature phone. Reliance Jio JioPhone will hit the shelves starting the first week of September, and pre-orders begin 24 August 2017, he said. Reliance Jio has close to 100 million paid customers, added Ambani. The outcome of the AGM was disclosed to the stock exchanges after market hours on Friday, 21 July 2017.

Index heavyweight ITC rose 1.53% at Rs 292.90 on reports the cigarette major hiked select product prices following GST Council hiked cess to pre-GST level. The company increased cigarette prices of its three brands effective 18 July 2017, as per reports. It hiked Gold Flake Kings and Classic Rich prices to Rs 300 per 20 pack each while Navy Cut Filter price increased to Rs 188 per 20 pack, reports suggested.

The Goods and Services Tax Council at its meeting held on 17 July 2017, increased the compensation cess on cigarettes by 48.50 paise to 79.20 paise per stick with effect from 18 July 2017.

HDFC Bank rose 2.03% at Rs 1,738 after net profit rose 20.22% to Rs 3893.84 crore on 14.81% growth in total income to Rs 22185.4 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 24 July 2017.

HDFC Bank's gross non-performing assets (NPAs) rose to Rs 7242.93 crore as on 30 June 2017 as against Rs 5885.66 crore as on 31 March 2017 and Rs 4920.89 crore as on 30 June 2016.

The ratio of gross NPAs to gross advances rose to 1.24% as on 30 June 2017 as against 1.05% as on 31 March 2017 and 1.04% as on 30 June 2016.

The ratio of net NPAs to net advances rose to 0.44% as on 30 June 2017 as against 0.33% as on 31 March 2017 and 0.32% as on 30 June 2016.

The bank's provisions and contingencies rose 79.84% to Rs 1558.76 crore in Q1 June 2017 over Q1 June 2016.

On the macro front, the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report today, 24 July 2017, said that growth in India is expected to pick up further in 2017 and 2018 with global economic recovery remaining on track on the back of better performing emerging economies. IMF projects India to grow at 7.7% in 2018, estimating a significant increase against the backdrop of ongoing economic reforms. The IMF estimates a global growth rate of 3.5% this year, which is projected to increase to 3.6% in 2018.

Meanwhile, NITI Aayog Vice Chairman Arvind Panagariya was quoted as saying said that India is likely to clock a 7.5% economic growth in FY 2018, even as he acknowledged that creation of "good jobs" in the country remains a big challenge. With the Indian government implementing the big ticket reform of the Goods and Services Tax, Panagariya reportedly said while there could be some teething troubles as the country embraces the ambitious financial reform, he does not see it significantly impacting economic growth going forward.

Overseas, European stocks edged lower as the weakness of the US dollar continued to affect global markets. French business activity slowed more than expected in July to a six-month low, though manufacturing sped up, a survey showed today, 24 July 2017. Data compiler IHS Markit said its preliminary monthly purchasing managers (PMI) index fell to 55.7 points from 56.6 in June 2017, the lowest reading since January.

Most Asian stocks rose, with traders focused on the wobbling dollar and the upcoming two-day policy meeting from the US Federal Reserve later in the week. The Nikkei Flash Japan Manufacturing Purchasing Managers' Index, or PMI, dropped to an eight-month low of 52.2 in July from 52.4 in June. A reading above 50 signals an improvement, while one below 50 points to a contraction in activity.

US equities fell on Friday, 21 July 2017, as General Electric led industrial stocks edged lower. Meanwhile, the US Federal Reserve will announce its interest rate decision on Wednesday, 26 July 2017. The Federal Reserve had raised the target range for its federal funds rate by 25 basis points to 1% to 1.25% during its June 2017 meeting.

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