Key benchmark indices registered modest gains in a highly volatile session of trade. The barometer index, the S&P BSE Sensex gained 178.47 points or 0.51% to settle at 35,260.29. The Nifty 50 index advanced 28.45 points or 0.26% to settle at 10,817.

Gains were triggered by reports indicating that the government is mulling a proposal to hike foreign direct investment (FDI) limit in the banking sector. Positive global stocks also underpinned sentiment. However, heavy selling in Reliance Industries, Tata Steel, Adani Ports and Special Economic Zone and State Bank of India in the afternoon session checked the gains. Realty and metal stocks dropped sharply.

Domestic stocks saw gap-up opening following positive Asian cues, with the Sensex and the Nifty scaling record high levels in intraday trade. Volatility was intense as stocks trimmed gains in second half after trading on a firm note in first half of day's trading session.

Private sector bank stocks advanced on reports the government is mulling a proposal to allow 100% foreign direct investment (FDI) in private banks. UltraTech Cement and Bharti Infratel declined after reporting weak Q3 results.

The Sensex gained 178.47 points or 0.51% to settle at 35,260.29, a record closing high. The index gained 425.54 points or 1.21% at the day's high of 35,507.36. The index rose 84.62 points or 0.24% at the day's low of 35,166.44.

The Nifty advanced 28.45 points or 0.26% to settle at 10,817, a record closing high. The index gained 98.95 points or 0.92% at the day's high of 10,887.50. The index fell 6.15 points or 0.06% at the day's low of 10,782.40.

The S&P BSE Mid-Cap index shed 1.69%. The S&P BSE Small-Cap index dropped 2.04%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was weak. On the BSE, 2,262 shares declined and 696 shares rose. A total of 128 shares were unchanged.

The total turnover on BSE amounted to Rs 6012.01 crore, lower than turnover of Rs 6289.13 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P Bankex index (up 0.69%) and the BSE FMCG index (up 0.74%) outperformed the Sensex. The BSE Telecom index (down 2.63%), the BSE Healthcare index (down 1.13%), the BSE Metal index (down 2.87%) and the BSE Realty index (down 4.07%) underperformed the Sensex.

Private sector bank stocks advanced on reports the government is mulling a proposal to allow 100% foreign direct investment (FDI) in private banks. Increasing the permissible limit for FDI in public sector banks to 49% from the current 20% is also being considered, reports indicated. Raising the permissible limit for FDI in the banking sector could reportedly improve services and help meet minimum capital requirements. At present, FDI of up to 49% is allowed in private banks without the permission of the government, and upto 74% can be invested with the government's approval.

Among private sector banks, HDFC Bank (up 2.15%), Kotak Mahindra Bank (up 1.77%), IndusInd Bank (up 1.36%) and ICICI Bank (up 0.87%) gained.

Yes Bank shed 0.66%. The bank's net profit rose 22.01% to Rs 1076.87 crore on 24.14% growth in total income to Rs 6492.56 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 18 January 2018.

Axis Bank dropped 0.18%. The bank hiked its lending rates based on marginal cost of funds based lending rate (MCLR) by 5 basis points across all tenors with effect from 18 January 2018. The announcement was made after market hours yesterday, 17 January 2018.

Public sector bank stocks declined. Bank of Baroda (down 1.52%), Punjab National Bank (down 2.63%), Bank of India (down 2.82%) and IDBI Bank (down 0.99%) edged lower.

State Bank of India (SBI) lost 1.18% at Rs 302.75. The bank said that the executive committee of central board (ECCB) approved the proposal for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2017-18 and FY 2018-19. The announcement was made after market hours yesterday, 17 January 2018.

Realty stocks tumbled. Unitech (down 6.59%), HDIL (down 5.16%), DLF (down 4.67%), Indiabulls Real Estate (down 4.61%), Godrej Properties (down 4.18%), Sobha (down 3.5%), Oberoi Realty (down 3.42%) and Prestige Estates Projects (down 3.34%) declined.

Hindustan Unilever (HUL) lost 1.04% at Rs 1,357.60. The company's net profit rose 27.7% to Rs 1326 crore on 10.8% increase in net sales to Rs 8323 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 17 January 2018.

HUL's chairman Harish Manwani said that the company delivered another strong performance in the quarter, with broad-based growth across categories and further improvement in margins. HUL remains positive about the mid-term outlook of the industry and will continue to invest strongly in its core brands and developing categories of the future. There are early signs of commodity cost inflation and the company will further sharpen its focus on cost effectiveness programs and manage its business dynamically for competitiveness and sustained profitability.

Adani Ports and Special Economic Zone (APSEZ) dropped 4.32% at Rs 414.35. The company's consolidated net profit rose 19.51% to Rs 1001 crore on 20.38% growth in total income to Rs 2924.85 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 18 January 2018.

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said that the company foresees continued uptick in cargo volumes in India. While western ports in India will continue to grow the company is confident of exponential cargo volume growth in Eastern and Southern coasts of India. The company would continue to increase is footprints in the logistics space.

UltraTech Cement fell 2.95% at Rs 4,408.55 after consolidated net profit fell 23.36% to Rs 456 crore on 33.24% increase in net sales to Rs 7897 crore in Q3 December 2017 over Q3 December 2016. In its outlook, the company said that the expected higher budget allocation for infrastructure and rural development will be the key demand drivers for cement. The result was announced during trading hours today, 18 January 2018.

Bharti Infratel declined 6.15% at Rs 343.85 after consolidated net profit fell 6% to Rs 585 crore on 7% increase in revenue to Rs 3655 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 17 January 2018.

Maruti Suzuki India rose 0.5% at Rs 9,359 after the company during market hours today, 18 January 2018 said that the all-new Swift is all set for the India premier at Auto Expo 2018. The iconic Swift comes with a brand new design. The completely new Swift is engineered with the best of Suzuki's design capabilities and built on the innovative 5th generation HEARTECT platform. The all-new Swift is wider, compact and with longer wheel base allowing more cabin space, headroom as well as luggage space.

Among other news, finance minister Arun Jaitley today, 18 January 2018 chaired the pre-budget meeting with finance ministers of all the states and Union Territories. The Union Budget, the last one during this tenure of the Bharatiya Janata Party-led National Democratic Alliance (NDA) government, will be presented on 1 February 2018.The budget session will begin on 29 January.

Overseas, Asian and European stocks nudged higher amid optimism over global growth prospects. In China, the National Bureau of Statistics announced today, 18 January 2018 that the economy had expanded 6.9% last year, up slightly from 6.7% in 2016 and breaking a trend of gradual slowing that had begun in 2011. For the fourth quarter, it reported growth of 6.8% over a year earlier.

Another data showed that China's industrial output picked up in December. Value-added industrial output, a rough proxy for economic growth, expanded 6.2% in December from a year earlier, compared with a 6.1% increase in November, the National Bureau of Statistics said.

US stocks rose to fresh highs yesterday, 17 January 2018 as companies continued to indicate the tax overhaul will boost earnings this year. The Dow Jones Industrial Average staged a late rally to end above 26,000 for the first time ever.

The Fed's Beige Book indicted that the outlook for 2018 remains optimistic for a majority of contacts across the country. As for the much vaunted tax cuts, only businesses in Chicago and Dallas were excited over the Republican tax plan, while districts along the East Coast were worried about higher taxes from the new limits on deductions for mortgage interest and property and state income taxes, reports indicated.

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