Market may extend recent gains
Overseas, Asian stocks were mixed. Japan’s government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9% and 1.8% respectively on the back of steady improvement in domestic demand, the Cabinet Office said.
US stocks closed at all-time highs yesterday, 18 December 2017, as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.
Congress is expected to vote as early as today, 19 December 2017, on a plan that would slash the federal corporate tax rate to 21% from 35%. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the US tax code for most of 2017.
Back home, the stock market settled with modest gains after witnessing sharp volatility at the onset of the session yesterday, 18 December 2017, as assembly elections results showed that BJP will return to power for a sixth straight term in Gujarat and will overthrow Congress rule to form government in Himachal Pradesh. The Sensex rose 138.71 points or 0.41% to settle at 33,601.68, its highest closing level since 29 November 2017. Indices rose for the third straight day.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 431.77 crore yesterday, 18 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1076.81 crore yesterday, 18 December 2017, as per provisional data.
Among corporate news, Bank of Baroda said that its board will meet on 22 December 2017, to consider a proposal to approve raising of additional capital funds in domestic / overseas markets eligible to be reckoned as BASEL-III Compliant Additional Tier-I (AT-I) Capital. It will be over and above Rs 3000 crore already approved by the board at its meeting held on 27 May 2017. The announcement was made after market hours yesterday, 18 December 2017.
HDFC said it will raise Rs 2000 crore by issuing debt securities on private placement basis. The 7.55% HDFC, 20 February 2019 secured redeemable non-convertible debentures will be issued on a private placement basis, HDFC said in a regulatory filing. The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation, it said. The issue will open on 20 December 2017 and closes the same day. The announcement was made after market hours yesterday, 18 December 2017.
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