Wednesday, 19 July 2017

BSE Midcap index hits fresh high, up over 1% for the day

Markets, midcaps, cmallcaps, Budget 2017

STOCK MARKET - The S&P BSE Midcap index hit a new high of 15,265, up 1% on BSE, after a strong gain in oil & gas, metals and financial stocks. The index surpassed its previous high of 15,247.90 touched on Monday, July 17, 2017 in intra-day trade.

Mangalore Refinery & Petrochemicals (up 6% at Rs 130) and Hindustan Petroleum Corporation (up 4% at Rs 383) from the oil & gas sector up more than 3% on merger talk with Oil and Natural Gas Corporation (ONGC).

Wockhardt, Alkem Laboratories, Divi’s Laboratories and Glenmark Pharmaceuticals from the pharma sector up 3%-4%, while Bajaj Finserv, Indian Bank, Mahindra & Mahindra Financial Services, Indian Bank and Bank of India from the financials including banks were up between 2% and 3% on BSE.

A Reuters poll showed that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from Goods and Service Tax (GST) regime and bolstered by an expected interest rate cut by RBI in its next policy meeting in August.

India's annual retail inflation eased to 1.54% in June, its slowest pace in more than five years, but is expected to begin rising again through to mid-2018.

With inflation currently well below its target, the central bank is expected to cut borrowing costs by 25 basis points (bps) at its next meeting on Aug. 2. It last cut rates, by the same amount, to 6.25% in October 2016.

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