Sensex, Nifty scale record high in early trade

Key benchmark indices drifted higher in early trade led by gains in Bharti Airtel and Axis Bank. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 86.71 points or 0.26% at 33,659.93. The Nifty 50 index was up 18.25 points or 0.18% at 10,442.05. Both the Sensex and the Nifty scaled record high in early trade.

The S&P BSE Mid-Cap index was up 0.28%. The S&P BSE Small-Cap index was up 0.63%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,145 shares rose and 437 shares fell. A total of 39 shares were unchanged.

Overseas, Asian stocks were trading on a mixed note. Markets in Japan were closed for Culture Day. Activity in China's service sector expanded at a faster pace in October, a private gauge showed Friday, in contrast with official data showing a slower pace of growth. The Caixin China services purchasing managers' index rose to 51.2 in October from 50.6 in September, Caixin Media Co. and research firm Markit said. China's official nonmanufacturing PMI, which includes the construction sector, fell to 54.3 in October from 55.4 in September, the National Bureau of Statistics said on Tuesday.

In US, the Dow Jones Industrial Average closed at a record on Thursday, but the other main benchmarks saw muted moves, as investors parsed through tax reform details.

House Republicans released details of a highly-anticipated tax-reform plan although market moves were subdued. The corporate tax rate would be reduced to 20% from 35% under the plan, which also aims to lower the number of income tax brackets. Hopes for tax cuts have been credited for some market gains over the past year.

Trump announced that Jerome Powell, Federal Reserve Governor, would become the chairman of the Federal Reserve when current Chair Janet Yellen steps down at the end of her term in February. The move had been mostly expected by investors.

In Europe, the Bank of England (BoE) raised its key interest rate by a quarter-percentage point to 0.5%, meeting widely held expectations for the first rate increase to be enacted since July 2007. There remain considerable risks to the outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal, BoE said in a statement, referring to Britain's plan to exit the European Union, or Brexit.

Back home, Axis Bank (up 2.66%), Bharti Airtel (up 2.4%) and Dr Reddy's Laboratories (up 1.22%) were the top gainers from the Sensex pack.

Power Grid Corporation of India (PGCIL) fell 0.87%. The company's net profit rose 14.37% to Rs 2141.04 crore on 15.62% growth in total income to Rs 7492.52 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 2 November 2017

Vedanta rose 0.62% after consolidated attributable profit after tax (PAT) before exceptional items rose 43% to Rs 2036 crore on 37% growth in net sales to Rs 21520 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 2 November 2017.

There was an exceptional income (credit) of Rs 186 crore in Q2 September 2017, primarily relating to reversal of royalty of Rs 291 crore at Zinc India. This was partially offset by Rs 109 crore of exploratory assets write-off at oil & gas business.

The growth in top line during the quarter was on account of higher volume at Copper India, Zinc India, Zinc International, ramp up at aluminium business and higher commodity prices partially offset by currency appreciation, lower volumes at oil & gas business.

Kuldip Kaura, Chief Executive Officer, Vedanta, said that key contracts on the company's announced oil & gas projects are at advanced stages of being awarded. Kaura expects the second half of the current fiscal to be more robust with the continuing production ramp up and the company continues to maintain a strong balance sheet and remain focused on creating long term shareholder value.

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