Key benchmark indices extended recent gains and logged strong gains on first trading day of the week as firmness in most global stocks supported gains on the bourses. The gains were led by index pivotals Reliance Industries (RIL), TCS and L&T. The barometer index, the S&P BSE Sensex, gained 286.43 points or 0.81% to settle at 35,798.01. The Nifty 50 index gained 71.50 points or 0.66% to settle at 10,966.20. Both the Sensex, and the Nifty, scaled record high levels on intraday as well as on closing basis. The market gained for the fourth straight day.

RIL surged after declaring good Q3 result after market hours on Friday, 19 January 2018. Axis Bank gained after announcing robust Q3 result during market hours today, 22 January 2018. IT stocks gained.

Trading for the week began on a positive note triggered by firmness in global stocks with Reliance Industries and HDFC Bank leading gains. A bout of volatility was seen in morning trade. Volatility continued in mid-morning trade as stocks regained strength soon after trimming gains from higher levels. Indices held firm till afternoon trade. Indices extended gains in mid-afternoon trade. The Sensex and the Nifty rallied in late trade to scale fresh record highs.

The Sensex gained 286.43 points or 0.81% to settle at 35,798.01, a record closing high. The index gained 316.12 points or 0.89% at the day's high of 35,827.70, a record high for the barometer index. The index rose 33.10 points or 0.09% at the day's low of 35,544.68.

The Nifty 50 index gained 71.50 points or 0.66% to settle at 10,966.20, a record closing high. The index gained 80.40 points or 0.74% at the day's high of 10,975.10, a record high for the index. The index fell 13.30 points or 0.12% at the day's low of 10,881.40.

The S&P BSE Mid-Cap index rose 0.63%. The S&P BSE Small-Cap index gained 0.78%. Both these indices underperformed the Sensex

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,567 shares rose and 1,326 shares fell. A total of 184 shares were unchanged.

The total turnover on BSE amounted to Rs 4919.79 crore, lower than the turnover of Rs 5497.58 crore registered during the previous trading session on Friday, 19 January 2018.

Reliance Industries surged 4.5% to Rs 971.20 after consolidated net profit rose 25.5% to Rs 9445 crore on 25.7% growth in net sales to Rs 99810 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Friday, 19 January 2018.

Mukesh D. Ambani, Chairman and Managing Director, RIL said that the quarter marks the culmination of its petrochemical expansion projects and the first positive net profit contribution from its newest business line - Digital Services (Jio). Jio's strong financial result reflects the fundamental strength of its business, significant efficiencies and right strategic initiatives, he said. Ambani further added that the company is excited about the prospects of its energy and consumer businesses due to strong growth in Indian markets and constructive macro environment.

ONGC jumped 3.28% to Rs 199.95. HPCL fell 3.55% to Rs 401.75. ONGC on Friday, 19 January 2018, approved acquisition of the entire 51.11% shareholding of Government of India (GoI) in HPCL, at a cash purchase consideration of Rs 473.97 per share with a total acquisition cost of Rs 36915 crore. The parties expect to complete the transaction before end of January 2018. The announcement was made on Saturday, 20 January 2018.

L&T advanced 1.97% to Rs 1,398.95 after the company announced the launch of second Offshore Patrol Vessel (OPV) of a series of seven OPVs for the Indian Coast Guard at the company's greenfield defence shipyard at Kattupalli, near Chennai on Saturday, 20 January 2018. L&T had received the order valued at Rs 1432 crore for design and construction of seven OPVs from the Ministry of Defence in March 2015. The announcement was made during market hours today, 22 January 2018.

The first OPV was launched in October 2017 and is presently undergoing trials. OPVs are long-range surface ships with helicopter operation capabilities, and their roles include coastal and offshore patrolling, policing maritime zones of India, control & surveillance, anti-smuggling & anti-piracy with limited wartime roles.

IT stocks logged strong gains. HCL Technologies (up 0.98%), Tech Mahindra (up 3.07%) and TCS (up 5.36%) surged.

Infosys rose 0.62%. The company announced a strategic partnership with the A.S. Watson Group (ASW), the world's largest international health and beauty retailer, to accelerate ASW's digital transformation initiatives. Infosys has been appointed as an official technology partner by the A.S. Watson Group to provide technology services across data science and artificial intelligence. This collaboration is part of ASW's Technology Partnership Program, which is aimed at developing strategic partnerships to support the company's long term goals. The announcement was made during market hours today, 22 January 2018.

Wipro lost 2.33% after consolidated net profit fell 11.85% to Rs 1930.10 crore on 1.82% growth in net sales to Rs 13669 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours on Friday, 19 January 2018.

Wipro's revenue from IT services in dollar terms in Q3 December 2017 remained flat sequentially and increased by 5.8% YoY. The company expects revenue from IT Services business to be in the range of $2,033 million to $2,073 million for Q4 March 2018.

Abidali Z. Neemuchwala, CEO and member of the board said, the company continued to improve its growth trajectory driven by strong momentum in BFSI and uptick in healthcare. This is also reflected in its outlook for Q4 March 2018. Wipro's leadership in digital continues to strengthen with over 25% of its revenues now coming from digital, Neemuchwala added.

Jatin Dalal, Chief Financial Officer said, the company has made strong progress in its client mining with number of clients contributing revenues over $50 million increasing from 33 to 41 in the last 1 year. In the first 9 months of FY 2018, Wipro generated robust operating cash flows over the same period last year, Dalal added.

Shares of public sector bank stocks declined. State Bank of India (SBI) (down 0.91%), Union Bank of India (down 0.46%), Bank of India (down 0.39%), Punjab National Bank (down 0.37%) Syndicate Bank (down 2.28%), Indian Overseas Bank (down 0.65%), Bank of Baroda (down 0.36%), Andhra Bank (down 0.62%), Oriental Bank of Commerce (down 0.2%), and Dena Bank (down 0.57%) declined. Indian Bank (up 0.2%) and Canara Bank (up 0.36%) gained.

Shares of most private sector banks gained. Yes Bank (up 2%), HDFC Bank (up 0.66%) and Kotak Mahindra Bank (up 1.07%) gained. ICICI Bank (down 0.64%) and IndusInd Bank (down 0.21%) declined.

Axis Bank gained 3.52% to Rs 611.05 after net profit rose 25.34% to Rs 726.44 crore on 1.29% decline in total income to Rs 14314.63 crore in Q3 December 2017 over Q3 December 2016. The result was declared during market hours today, 22 January 2018.

Axis Bank's gross non-performing assets (NPAs) stood at Rs 25000.51 crore as on 31 December 2017 as against Rs 27402.32 crore as on 30 September 2017 and Rs 20466.82 crore as on 31 December 2016.

The ratio of gross NPAs to gross advances stood at 5.28% as on 31 December 2017 as against 5.90% as on 30 September 2017 and 5.22% as on 31 December 2016. The ratio of net NPAs to net advances stood at 2.56% as on 31 December 2017 as against 3.12% as on 30 September 2017 and 2.18% as on 31 December 2016.

The bank's provisions and contingencies fell 25.94% to Rs 2811.04 crore in Q3 December 2017 over Q3 December 2016. Provision coverage ratio of the bank was at 66% as on 31 December 2017.

Realty stocks rose. DLF (up 0.9%), Sobha (up 11.82%), Indiabulls Real Estate (up 0.64%), NBCC (up 0.83%), Godrej Properties (up 9.83%), Housing Development & Infrastructure (HDIL) (up 1.07%), and Phoenix Mills (up 2.19%) edged higher. D B Realty (down 2.45%) and Unitech (down 0.55%) declined.

Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status for the sector. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.

Meanwhile, the Sensex has gained 1,026.96 points or 2.95% in four sessions to its ruling figure, from a close of 34,771.05 on 16 January 2018.

Overseas, European stocks were trading mixed. Asian stocks settled higher shrugging off the US government shutdown. In Germany, progress has been made toward forming the next coalition government. On Sunday, Chancellor Angela Merkel welcomed news that the opposing Social Democratic Party will enter into talks with her Christian Democrats. Stateside, the US government looks set to remain closed Monday, the third day of a shutdown over a disputed spending bill.

US stocks on Friday, 19 January 2018 finished higher, with both the S&P 500 and the Nasdaq ending at records as optimism over corporate earnings outweighed the US government shutdown.

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