Shares advanced on broad-based buying support as positive cues from global stock markets boosted investors sentiment. The barometer index, the S&P BSE Sensex, rose 176.26 points or 0.52% to 33,969.64, as per the provisional closing data. The Nifty 50 index rose 64.35 points or 0.62% to 10,507.55, as per the provisional closing data.
Key indices opened higher, tracking positive leads from Asian markets and overnight rally on the Wall Street. Key indices hovered with small gains till morning trade. Later, indices extended gains and hit fresh intraday high in late trade as positive cues from European stocks strengthened investors' risk appetite.
The Sensex rose 202.02 points, or 0.60% at the day's high of 33,995.40 in late trade. The index rose 8.75 points, or 0.03% at the day's low of 33,802.13 in early trade. The Nifty rose 69.80 points, or 0.67% at the day's high of 10,513 in late trade, its highest intraday level since 1 January 2018. The index fell 1.75 points, or 0.02% at the day's low of 10,441.45 in early trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.71%. The S&P BSE Small-Cap index provisionally rose 0.88%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,915 shares rose and 1006 shares fell. A total of 97 shares were unchanged.
The total turnover on BSE amounted to Rs 5564.85 crore, higher than turnover of Rs 4784.33 crore registered during the previous trading session.
Metal shares were in demand. Jindal Steel & Power (up 11.27%), Steel Authority of India (up 3.84%), Tata Steel (up 3.69%), JSW Steel (up 3.45%), NMDC (up 3.28%), National Aluminium Company (up 2.21%), Bhushan Steel (up 1.71%), Hindustan Zinc (up 1.68%), Vedanta (up 1.62%) and Hindalco Industries (up 1.14%), edged higher. Hindustan Copper fell 0.10%.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 0.66% at $3.279 per pound on the COMEX.
Shares of PSU banks advanced after report suggested that the government was seeking to take Parliament's nod for additional Rs 80000 crore bonds aimed at recapitalising the ailing public sector banks. UCO Bank (up 8.50%), IDBI Bank (up 8.16%), Dena Bank (up 5.71%), Punjab National Bank (up 5.52%), Bank of Baroda (up 3.93%), Bank of India (up 3.92%), United Bank of India (up 3.89%), Andhra Bank (up 3.75%), Corporation Bank (up 3.13%), Canara Bank (up 2.79%), Union Bank of India (up 2.69%), Bank of Maharashtra (up 2.39%), Indian Bank (up 1.86%), State Bank of India (up 1.70%), Vijaya Bank (up 1.19%), Syndicate Bank (up 1.13%), Central Bank of India (up 0.92%) and Punjab & Sind Bank (up 0.80%), edged higher.
Allahabad Bank rose 1.94%. The bank said that the Reserve Bank of India has placed the bank under prompt corrective action framework, consequent to the onsite inspection under the risk based supervision model carried out for the year ended March 2017 and the report issued thereof. The announcement was made after market hours yesterday, 3 January 2018.
Moreover, the finance ministry recently approved proposal for infusion of Rs 7577 crore in 6 weak public sector banks (PSBs) as part of the recapitalisation plan to bolster capital adequacy ratio. Finance minister Arun Jaitley in October 2017 had announced an unprecedented Rs 2.11-lakh-crore two-year road map to strengthen public sector banks, reeling under high non-performing assets (NPAs) of which Rs 1.35 lakh crore was in form of government bonds and Rs 76000 crore in the form of budgetary allocation and market raising.
IT major Infosys fell 0.37%. The IT major during trading hours today, 4 January 2018, announced a new partnership with paperless validation company ValGenesis, that will bring even stronger compliance and quality management for its customers in the healthcare and life sciences sectors. Under the partnership, Infosys will integrate ValGenesis' Validation Lifecycle Management System (VLMS) within its suite of services for the pharmaceutical and biotech industry, which will be delivered in a rapidly deployable, highly secure cloud environment.
ValGenesis is a leading paperless validation lifecycle management solution in the life sciences industry that allows customers to automate the validation process fully, eliminate inefficiencies found in paperbased manual processes, while also reducing costs and validation cycle times. The ValGenesis Validation Lifecycle Management System (VLMS) efficiently manages all types of validation activities such as equipment, computer systems, cleaning, analytical methods, and process validation. The system delivers technology solutions that are fully configurable and rapidly deployable onsite or by way of a secured cloud environment.
Navkar Corporation rose 1.53% to Rs 205.95, with the stock extending Wednesday's rally on the back of bulk purchases via open market transaction yesterday, 3 January 2018. Shares of Navkar Corporation have surged 9.4% in two trading sessions, to its ruling price, from its closing of Rs 188.75 on 2 January 2018. Everest Finance and Investment Company bought 10 lakh shares of Navkar Corporation at Rs 187.06 per share in a bulk deal on the BSE yesterday, 3 January 2018. On the same day, Ashish Rameshchandra Kacholia bought 10 lakh shares at Rs 187 apiece in a bulk deal on the NSE.
On the macro front, the Nikkei India services Purchasing Managers' Index (PMI) returned to marginal growth during December as new orders broadly stabilised. The seasonally adjusted business activity index stood at 50.9 in December 2017, up from 48.5 in November 2017. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. The data was unveiled during trading hours today, 4 January 2018.
Overseas, European markets were trading higher as investors reacted to robust economic data.
In Germany, the unemployment rate hit a record low of 5.5% in December. Separately, business activity in Germany's service sector rose at the fastest rate for two years in December. The seasonally adjusted final IHS Markit Germany Services PMI Business Activity Index climbed to 55.8 in December from 54.3 in November, recording its highest reading since the final month of 2015.
Business activity in the French service sector improved markedly at the end of 2017. The headline seasonally adjusted Business Activity Index posted 59.1 in December. Although down from November's six-and-a-half year high of 60.4.
Asian shares ended higher as solid economic data from China reinforced investors' optimism while oil prices continued their upward momentum with unrest in Iran stoking supply disruption concerns.
China's services sector grew at its fastest pace in more than three years in December, according to a private survey. The Caixin China services purchasing managers' index came in at 53.9 in December, up from 51.9 in November.
In the US, stock-market indices advanced further into record territory, with the main benchmarks closing at fresh all-time highs.
The minutes from the latest US Federal Reserve meeting showed a distinct lack of unity over the central bank's projection of three rate hikes in 2018. Some policymakers think three rate hikes would be too aggressive, while others think such a pace would be too slow.
Among other news, US factory activity increased more than expected in December, boosted by a surge in new orders growth.
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