Domestic stocks logged modest gains following strong domestic economic data. Stocks advanced for third consecutive session boosted by the appointment of new Reserve Bank of India (RBI) governor and as uncertainty surrounding state election outcome receded. The Sensex settled below the psychological 36,000 level after moving above and below that level in intraday trade.
The barometer index, the S&P BSE Sensex, rose 150.57 points or 0.42% to settle at 35,929.64. The index hit high of 36,095.56 and low of 35,794.51 in intraday trade.
The Nifty 50 index rose 53.95 points or 0.50% to settle at 10,791.55. The index hit high of 10,838.60 and low of 10,749.50 in intraday trade.
Among secondary barometers, the BSE Mid-Cap index rose 0.82%. The BSE Small-Cap index rose 0.65%.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1487 shares rose and 1062 shares fell. A total of 136 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.4%), the S&P BSE Capital Goods index (up 1.27%), the S&P BSE Realty index (up 1.19%) outperformed the Sensex. The S&P BSE Metal index (down 0.66%), the S&P BSE Power index (up 0.18%), the S&P BSE Healthcare index (up 0.19%) underperformed the Sensex.
Wipro (up 2.64%), Infosys (up 2.62%), Kotak Mahindra Bank (up 2.56%), Maruti Suzuki India (up 2.18%) and IndusInd Bank (up 1.53%) were the major Sensex gainers.
Sun Pharmaceutical Industries (down 2.12%), TCS (down 1.74%), Tata Steel (down 1.57%), Adani Ports & Special Economic Zone (down 1.01%) and Coal India (down 0.91%) were the major Sensex losers.
Capital goods stocks rose. ABB India (up 0.06%), Bharat Heavy Electricals (Bhel) (up 0.75%), BEML (up 5.46%), Bharat Electronics (up 4.73%), L&T (up 1.77%) and Thermax (up 0.9%) rose. Siemens (down 0.35%) fell.
Yes Bank fell 6.48% on profit booking after a recent strong rally. The bank announced during trading hours today, 13 December 2018, that its Nomination & Remuneration Committee (N&RC) and board of directors have finalised the recommendation for non-executive part-time chairman position and shall be promptly seeking requisite approvals from the Reserve Bank of India.
Following the last meeting of the N&RC, 2 newly appointed additional directors (independent), T S Vijayan and Uttam Prakash Agarwal attended their first board meeting today. The board strength now stands restored at 8 members with only 1 vacancy. The N&RC has also evaluated profiles for additional directors especially with information technology expertise, to lead the bank's IT strategy committee. The N&RC will finalise the same shortly, after requisite due diligence.
The 'Search & Selection Committee' (SSC) and the board of directors are on track to complete the said process within the stipulated timelines of the Reserve Bank of India. The SSC has discussed and deliberated on the final shortlisted external and internal candidates presented by Korn Ferry post their comprehensive interviews and assessment. The SSC will now engage with the candidates over the next few days for finalization. The final recommendation will be submitted to the Reserve Bank of India by the board of directors post their next meeting scheduled on 9 January 2019.
Lupin rose 2.97%. The company announced that the General Court of the European Union has delivered its judgment concerning Lupin's and other companies appeal against the European Commission's (EC) 2014 decision in the Perindopril litigation. The General Court upheld the EC's decision holding Lupin liable to pay a fine of EUR 40 million. Lupin will study the General Court's judgment and evaluate further course of action. The announcement was made after market hours yesterday, 12 December 2018.
SORIL Infra Resources was locked in 5% upper circuit at Rs 293.60. SORIL Infra Resources informed that to participate in the lending opportunities in unserved rural India, the company has initiated the process to foray into financial services business with primary focus on providing financial services in rural India. For this, the company has started the necessary process of acquiring an existing NBFC (subject to necessary compliances and approvals), as wholly owned subsidiary of the company, to undertake lending business in the rural markets. The announcement was made after market hours yesterday, 12 December 2018.
Infibeam Incorporation rose 1.18%. The company said that the meeting of the board of directors of the company is scheduled on 17 December 2018 to consider and approve examine and evaluate the feasibility of and options for strategic growth opportunities of the business verticals and subsidiaries of the company. The announcement was made after market hours yesterday, 12 December 2018.
Pricol surged 14.85%. Pointer Telocation and Pricol announced that they intend to enter into a joint venture to provide advanced telematics and IoT solutions in India and other countries in South East Asia. Pointer will control 51% interest and Pricol will control 49% interest in this proposed joint venture. Pointer Telocation is a leading developer, manufacturer and operator of Mobile Resource Management (MRM). The announcement was made after market hours yesterday, 12 December 2018.
On the economic front, India's industrial production (base year 2011-12=100) surged at 11-month high pace of 8.1% in October 2018, compared with 4.5% growth recorded in September 2018. The industrial production growth for September 2018 has been retained unchanged from 4.5% increase reported provisionally.
The all-India general CPI inflation dipped to 17-month low of 2.33% in November 2018 (new base 2012=100), compared with 3.38% in October 2018. The core CPI inflation eased to 5.71% in November 2018 compared with 6.20% in October 2018.
Overseas, European stocks reversed early gains and slipped into negative terrain. UK Prime Minister Theresa May won a crucial vote of confidence in her leadership on Wednesday evening. May won the leadership challenge by 200 votes to 117 votes against her in the ballot of Conservative members of parliament (MPs). May needed a simple majority (at least 159 out of 315 Conservative MPs) to win the confidence vote. Winning this vote means her leadership cannot be challenged for another year now.
Asian shares ended higher on Thursday, building on the momentum seen on Wall Street overnight, as China appeared to be taking more steps to meet US demands to open its markets.
According to media reports, Beijing is working to increase access to foreign companies, a move aimed at smoothing US-China trade relations. The plan would replace the country's Made in China 2025 initiative, reports said. Made in China 2025 is a framework aimed at making China a leader in industries like clean-energy cars and robotics.
US stocks came off session highs but still closed higher Wednesday after a series of developments boosted expectations that a US-China trade deal could be reached in the coming months.
On the US data front, the consumer-price index, a key measure of inflation, showed no price growth between October and November, the Labor Department announced Wednesday. Core prices, which eliminate volatile food and energy costs, rose 0.2% month-over-month.