After paring some gains in mid-morning trade, key benchmark indices clawed back some gains in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, rose 109.12 points or 0.33% at 33,460.69. The Nifty 50 index advanced 38.90 points or 0.368 at 10,281.55. Global stocks gained as fears of trade wars appear to subside after US President Donald Trump implemented steel and aluminum import tariffs that excluded Canada and Mexico.
Key indices started the session on a positive note on firm global cues. Indices extended gains in morning trade. Later, the indices hovered in a narrow range in positive terrain so far.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,232 shares advanced and 1,169 shares declined. A total of 123 shares were unchanged.
Bharat Heavy Electricals rose 1.98% after the company said it won Rs 11700 crore order for 3x800 megawatts supercritical power plant in Jharkhand. The announcement was made during trading hours today, 9 March 2018.
Metal and mining stocks dropped after US President Donald Trump implemented steel and aluminum import tariffs that excluded Canada and Mexico. Steel Authority of India (down 4.38%), JSPL (down 2.42%), Tata Steel (down 1.61%), Nalco (down 1.25%), Hindustan Zinc (down 1.05%), NMDC (down 0.8%), Hindalco Industries (down 0.61%), Vedanta (down 0.06%) and JSW Steel (down 0.16%) declined.
In political news, the Telugu Desam Party (TDP), ally of National Democratic Alliance (NDA), has pulled out its two ministers from the Narendra Modi cabinet yesterday, 8 March 2018, in protest against the injustice to Andhra Pradesh. However, the party decided to continue supporting the NDA. The action by the TDP, which has sixteen members in the Lok Sabha and six in Rajya Sabha, will have no impact on the stability of the Modi government which has sufficient numbers in Parliament but will be seen as a big political setback as TDP is the first pre-poll ally to pull out of the Centre in nearly four years.
Overseas, Asian stocks edged higher after moderate gains on Wall Street overnight following the implementation of US tariffs on steel and aluminum. Japan's central bank kept monetary settings unchanged today, 9 March 2018 and stuck to its upbeat view on the economy. In a widely expected move, the Bank Of Japan (BOJ) maintained its pledge of guiding short-term interest rates at minus 0.1% and the 10-year government bond yields around zero percent.
Trump signed a proclamation yesterday, 8 March 2018 authorizing the tariffs at 25% on steel imports and 10% on aluminium, the same level he promised when he revealed the plan on 1 March. The aluminium and steel import tariffs will take effect in 15 days, as per reports.
In Europe, the European Central Bank (ECB), at its monetary policy meeting yesterday, 8 March 2018, kept its broader policy unchanged. The central bank said it could still extend its 2.55 trillion euro ($3.16 trillion) bond purchase scheme beyond September if needed.
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