Market scales fresh record high

Key benchmark indices were trading with decent gains after hitting fresh record highs in early trade. At 9:24 IST, the barometer index, the S&P BSE Sensex, rose 157.65 points or 0.46% at 34,750.04. The Nifty 50 index advanced 47.90 points or 0.45% at 10,729.15. Nifty crossed 10,700-mark for the first time in history. Banking and realty stocks led gains on the bourses. Firmness in Asian stocks supported gains on the bourses. India's industrial production surging at 25-month high pace of 8.4% in November also boosted sentiment.

Among the secondary indices, the S&P BSE Mid-Cap index rose 0.49%. The S&P BSE Small-Cap index advanced 0.79%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was very strong. On the BSE, 1,530 shares advanced and 391 shares declined. A total of 88 shares were unchanged.

IT major Infosys rose 0.03% after consolidated net profit rose 37.65% to Rs 5129 crore on 1.29% growth in net sales to Rs 17794 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours on Friday, 12 January 2018. The result is as per Indian Accounting Standards (Ind-AS).

The sharp jump in Infosys' net profit in Q3 December 2017 is mainly on account of the conclusion of an advance pricing agreement (APA) with the US Internal Revenue Service (IRS). This has also led to an increase in basic earnings per share (EPS) by Rs 6.29 for the quarter.

On a consolidated basis, the company expects its revenues for the fiscal year ending 31 March 2018, under IFRS, to grow 5.5%-6.5% in constant currency. The revenues are expected to grow 2.1%-3.1% in rupee terms based on the exchange rates as of 31 December 2017. The revenues are expected to grow 6.5%-7.5% in dollar terms based on the exchange rates as of 31 December 2017.

Housing finance major HDFC gained 1.41% after the company said that its board approved issuing equity shares up to an aggregate amount not exceeding Rs 13000 crore through a combination of a preferential allotment and qualified institutions placement, subject to shareholders' approval through postal ballot. The announcement was made on Saturday, 13 January 2018.

On the macro front, industrial production surged at 25-month high pace of 8.4% in November 2017 over November 2016, while showing a sharp acceleration in growth from the 2% increase in October 2017.

The inflation based on consumer price index ( CPI) surged to 17-month high of 5.21% in December 2017 compared with 4.88% in November 2017. The corresponding provisional inflation rate for rural area was 5.27% and urban area 5.09% in December 2017 as against 4.79% and 4.9% in November 2017. The core CPI inflation increased to 4.96% in December 2017 compared with 4.75% in November 2017. The cumulative CPI inflation was lower at 3.25% in April-December FY2018 compared with 4.85% in April-December FY2017. Both IIP and CPI data was announced after market hours on Friday, 12 January 2018.

The government will announce inflation data based on wholesale price index (WPI) for December today, 15 January 2018. The WPI-based inflation accelerated further higher to eight-month high 3.9% in November 2017 from 3.6% in October 2017.

Overseas, Asian stocks gained and built on the strong start to this year and headed for a fresh record high amid optimism in global growth. US markets will remain shut today, 15 January 2018, for the Martin Luther King Jr. holiday after the S&P 500 Index closed on Friday, 12 January 2018, at an all-time high.

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