Nifty hits record high

Buying momentum increased in mid-afternoon trade as key benchmark indices extended gains and hit fresh intraday high. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 269.89 points or 0.84% at 32,452.11. The Nifty 50 index was up 78.80 points or 0.78% at 10,175.20.

Investors risk appetite improved on anticipation that a rise in industrial production and a steady inflation could increase pressure on the central bank to reduce interest rates to boost economic activity. Positive cues from the Asian market also boosted sentiment.

The Nifty hit its record high level, while the Sensex hit its highest intraday level in more than three weeks in mid-afternoon trade. The Sensex rose 306.63 points, or 0.95% at the day's high of 32,488.85 in mid-afternoon trade, its highest intraday level since 20 September 2017. The index rose 65.52 points, or 0.20% at the day's low of 32,247.74 in early trade. The Nifty rose 86.85 points, or 0.86% at the day's high of 10,183.25 in mid-afternoon trade, its record high level. The index rose 23.70 points, or 0.23% at the day's low of 10,120.10 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.09%. The BSE Small-Cap index was up 0.43%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,393 shares rose and 1,233 shares fell. A total of 130 shares were unchanged. Breadth was strong in morning trade.

Capital goods shares were mixed. SKF India (up 1.73%), Havells India (up 1.71%), Thermax (up 1.35%), Bharat Electronics (up 0.89%), BEML (up 0.73%), Reliance Defence and Engineering (up 0.66%), GE T&D India (up 0.65%), GE Power India (up 0.61%), Jindal Saw (up 0.56%), AIA Engineering (up 0.31%) and Siemens (up 0.12%), edged higher. Punj Lloyd (down 0.24%), Praj Industries (down 0.49%), ABB India (down 0.58%), Lakshmi Machine Works (down 0.66%), Crompton Greaves (down 0.7%) and Suzlon Energy (down 1.27%), edged lower.

Engineering and construction major Larsen & Toubro was down 0.14%.

Most sugar shares declined. Dwarikesh Sugar Industries (down 3.3%), Simbhaoli Sugars (down 3.05%), KCP Sugar & Industries Corporation (down 2.87%), Dhampur Sugar Mills (down 2.55%), Triveni Engineering & Industries (down 1.79%), EID Parry (India) (down 1.49%), Rana Sugars (down 1.34%), Shree Renuka Sugar (down 1.24%), Balrampur Chini Mills (down 0.8%) and Sakthi Sugars (down 0.76%), edged lower. Bajaj Hindusthan Sugar (up 0.21%), DCM Shriram Industries (up 1.28%) and Empee Sugars and Chemicals (up 4.62%), edged higher.

On the macro front, India's industrial production grew 4.3% in August 2017 over August 2016, while showing sharp improvement in growth from 0.9% increase in July 2017. The manufacturing sectors production improved 3.1% in August 2017, snapping decline in output for last two straight months. The electricity generation increased at improved pace of 8.3% and mining output also gained 4.3% in August 2017. The growth for July 2017 has been revised downwards to 0.9% from 1.2% reported earlier. The data was unveiled after market hours yesterday, 12 October 2017.

The all-India general consumer price index (CPI) inflation was flat at 3.28% in September 2017 compared with 3.28% in August 2017, after rising for last two months from 1.5% in June 2017. The data was unveiled after market hours yesterday, 12 October 2017.

The Election Commission (EC) yesterday, 12 October 2017, announced elections in Himachal Pradesh, but held off on making an announcement for Gujarat. Voting for the 68-seat Himachal Pradesh assembly will take place on 9 November 2017 and the results will be declared on 18 December 2017. Gujarat polls, Chief Election Commissioner (CEC) A K Joti reportedly said, will be announced later, but he added voting will wind up before Himachal results are declared. While Gujarat Assembly's term ends on 22 January 2018, Himachal Pradesh's finishes on 7 January 2018. The EC normally holds elections together in states where the incumbent governments are completing their five-year term within six months. The poll dates for these states are announced simultaneously.

Overseas, most European shares were trading lower. Asian stocks were trading higher. Investors were cautious ahead of US economic data as well as the Chinese Communist Party congress next week.

China attracted 70.63 billion yuan ($10.71 billion) worth of foreign direct investment in September, up 17.3% from a year earlier, the Ministry of Commerce said in a statement Friday.

China's exports grew 9% in September from a year earlier in yuan terms, following a 6.9% gain in August, official data showed Friday. Imports in September rose 19.5% in yuan terms from a year earlier, compared with a 14.4% rise in August, the General Administration of Customs said. The country's trade surplus last month narrowed to 193 billion yuan ($29.3 billion) from 286.49 billion yuan in August.

The US stock finished slightly lower on Thursday, even as Wall Street banks turned in generally upbeat results. The Dow Jones Industrial Average fell 0.14%. The S&P 500 shed 0.17%, while the Nasdaq Composite dropped 0.18%.

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