Key barometers registered strong gains in a steady session of trade led by index heavyweights Reliance Industries, HDFC and HDFC Bank. The barometer index, the S&P BSE Sensex, gained 282.48 points or 0.78% to settle at 36,548.41. The Nifty 50 index gained 74.90 points or 0.68% to settle at 11,023.20. An overnight slump in crude oil prices and positive global stocks boosted sentiment on the domestic bourses. The Sensex settled at a record closing high while the Nifty closed near its all time high.
Oil prices dropped sharply on Wednesday on news that Libya was suddenly set to restore hundreds of thousands of barrels per day, and the US struck a softer line on Iran sanctions. Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In the global commodities markets, Brent for September 2018 settlement was up $1.16 at $74.56 a barrel. The contract had fallen $5.46 a barrel or 6.92% to settle at $73.40 a barrel during the previous trading session.
The Nifty moved above the psychological 11,000 mark in opening trade as domestic stocks saw an upbeat start on positive Asian stocks. Stocks extended gains in morning, and mid-morning trade. Strong buying frenzy in index heavyweights propelled the key benchmark indices to fresh intraday high in early afternoon trade, with the Sensex hitting fresh record high. Stocks held firm in afternoon trade. Indices trimmed gains in mid-afternoon trade.
The Sensex rose 282.48 points or 0.78% to settle at 36,548.41, its record closing high. The index rose 433.60 points, or 1.20% at the day's high of 36,699.53, its record high level. The index rose 156.15 points, or 0.43% at the day's low of 36,422.08.
The Nifty 50 index rose 74.90 points or 0.68% to settle at 11,023.20, its highest closing level since 31 January 2018. The index rose 130 points, or 1.19% at the day's high of 11,078.30. The index rose 51.35 points, or 0.47% at the day's low of 10,999.65.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,170 shares rose and 1,469 shares fell. A total of 165 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Realty index (down 1.14%), the S&P BSE Auto index (down 0.77%), the S&P BSE Teck index (down 0.67%), the S&P BSE Basic Materials index (down 0.62%), the S&P BSE IT index (down 0.58%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.57%), the S&P BSE Metal index (down 0.52%), the S&P BSE Power index (down 0.39%), the S&P BSE Telecom index (down 0.3%), the S&P BSE Utilities index (down 0.1%), the S&P BSE Consumer Durables index (down 0.09%), the S&P BSE Industrials index (up 0.08%), the S&P BSE Healthcare index (up 0.17%), the S&P BSE FMCG index (up 0.35%) and the S&P BSE Capital Goods index (up 0.69%), underperformed the Sensex. The S&P BSE Finance index (up 0.91%), the S&P BSE Bankex (up 0.92%), the S&P BSE Oil & Gas index (up 1.6%) and the S&P BSE Energy index (up 3.07%), outperformed the Sensex.
Index heavyweight Reliance Industries surged 4.42% to Rs 1,082.20.
Sun Pharmaceutical Industries rose 0.52%. Sun Pharmaceutical Industries said that its wholly-owned subsidiary, DUSA Pharmaceuticals, filed trade secret misappropriation and tortious interference claims in an ongoing patent infringement lawsuit against Biofrontera Inc., Biofrontera Bioscience GmbH, Biofrontera Pharma GmbH, and Biofrontera AG in the United States District Court for the District of Massachusetts. The announcement was made after market hours yesterday, 11 July 2018.
The lawsuit alleges patent infringement of DUSA's patents covering DUSA's product, Levulan and Kerastick (aminolevulinic acid HCl) for topical solution, 20% used with DUSA's BLU-U Blue Light Photodynamic Therapy Illuminator. DUSA additionally alleges that the Biofrontera defendants misappropriated confidential and trade secret information from DUSA and improperly obtained confidential DUSA information from former DUSA employees to sell and market defendants' own products. The lawsuit seeks an assessment of both damages and injunctive relief against the Biofrontera defendants.
The patents-in-suit concern an apparatus and method for "photodynamic therapy" (or PDT) and equipment for PDT. The photodynamic therapy, pioneered by DUSA, combines a drug with a light source to treat disease conditions. The product was launched by DUSA in September 2000 in the US.
Power Grid Corporation of India shed 0.3%. The company announced that its wholly-owned subsidiary, Powergrid Warora Transmission, secured through tariff based competitive bidding (TBCB), has successfully put the elements into commercial operation progressively from November 2016 and the entire project put into commercial operation by 10 July 2018. The announcement was made after market hours yesterday, 11 July 2018.
On the macro front, the government will after market hours today, 12 July 2018 announce industrial production data for May 2018. India's industrial output grew 4.9% year-on-year in April 2018, following an upwardly revised 4.6% advance in the previous month.
Overseas, shares in Europe and Asia edged higher, despite lingering concerns around the US and Chinese trade war that show little sign of abating. US stocks fell yesterday, 11 July 2018 after the Trump administration announced new tariffs on Chinese goods, further escalating tensions between the two largest economies in the world.
The White House late Tuesday said it would assess 10% tariffs on a further $200 billion in Chinese goods. The US last week hit Beijing with levies on $34 billion in goods, and Beijing retaliated with tariffs of the same amount. A final decision on the products to be hit with the new tariffs is reportedly expected after a consultation period in late August.
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