Sensex, Nifty hit fresh record high

Key benchmark indices extended intraday gains to hit fresh record high in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, rose 256.61 points or 0.8% at 32,285.50. The Nifty 50 index was up 63.15 points or 0.64% at 9,978.40. Both the Sensex, and the Nifty, hit record high.

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 66.45 points or 0.67% at the day's high of 9,981.70 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.

Key indices opened on a positive note and later traded firm in positive terrain so far. 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.

Among secondary barometers, the S&P BSE Mid-Cap index rose 0.48%. The S&P BSE Small-Cap index advanced 0.65%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,450 shares rose and 1,179 shares declined. A total of 170 shares were unchanged.

Pharma stocks were mixed. Cipla (up 1.26%), Cadila Healthcare (up 0.94%), Lupin (up 0.5%) and Aurobindo Pharma (up 0.38%) edged higher. Dr Reddy's Laboratories (down 2.27%), Sun Pharmaceutical Industries (down 0.84%) and Glenmark Pharmaceuticals (down 0.71%) edged lower.

Divi's Laboratories dropped 4.34% at Rs 689.55 after net profit dropped 41.51% to Rs 176.54 crore on 17.67% fall in total revenue from operations to Rs 850.88 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 22 July 2017.

Cigarette stocks were mixed. Godfrey Phillips (up 1.36%) gained. VST Industries (down 2.05%) declined.

Index heavyweight ITC rose 1.59% at Rs 293.10 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.

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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