Markets end flat as focus shifts to US Fed minutes; Smallcap index up 1%

The benchmark indices ended flat on Wednesday tracking positive trade in global markets after focus shifted from geopolitical tensions around North Korea to minutes from the US Federal Reserve's last policy meeting.

The S&P BSE Sensex closed at 31,245, up 35 points, while the broader Nifty50 ended at 9,637, up 24 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain 0.9% and 1%, respectively. 

The breadth, indicating strength of the market was strong. On BSE, 1,695 shares rose and 978 shares fell. A total of 143 shares were unchanged.

"Market continued to trade above the support level of 9,600 with a positive bias. FIIs have been cautious during the recent times, anticipating that FOMC minutes today will provide insights over any possibility of more than one hike in US rate against consensus. Mid & small cap outperformed the benchmark indices as investors continued to move sector-specific to capitalize the benefit from GST," said Vinod Nair, Head of Research at Geojit Financial Services.

Sectors and stocks

Lupin was the top Sensex gainer and added nearly 4% to Rs 1,084 after the company said it has launched in the US market its generic version of Moxifloxacin Hydrochloride Ophthalmic solution used for treating bacterial conjunctivitis.

Tata Motors rose over 1% to Rs 433 after the company said that it has slashed prices of passenger vehicles post GST, passing benefits of GST to its customers. 

Mahindra & Mahindra (M&M) rose over 2% to Rs 1,383 after the company announced revised prices of its vehicles pursuant to the implementation of Goods & Services Tax (GST), with immediate effect.

ABC Bearings was locked in upper circuit for the second straight day, up 20% at Rs 286 on BSE, after the company said that the board has approved the merger with Timken India.

The stock, which is at its record high level, has zoomed 62% in the past three trading sessions from Rs 177 on June 30, 2017.

Shares of Texmaco Rail & Engineering advanced as much as 12% after Adventz Group on Tuesday said it has signed a $2 billion-plus agreement with Israel’s Lesico group to collaborate in light rail transit (LRT) projects in Tel Aviv and Jerusalem. 

June services activity hits eight-month high

On macroeconomic data front, buoyed by sustained growth in new work, the services sector continued to boom ahead in June, growing at an eight-month high pace, the widely tracked Nikkei India Services Purchasing Managers Index (PMI) showed.

The PMI for the dominating sector of the Indian economy stood at 53.1, higher than the 52.2 registered in May - back then a seven-month high.

Global markets

European markets were mixed with the pan-European Stoxx 600 losing 0.2%, while France's CAC 40 dipped 0.1%. Germany's DAX and Britain's FTSE 100 were little changed.

Among Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%, regaining half the losses it saw on Tuesday when North Korea fired a missile into Japanese waters.

South Korea's main index rebounded by 0.4% and Japan's Nikkei ended up 0.2%.

Shanghai stocks rose more than 1%, despite a drop in the Caixin/Markit services purchasing managers' index (PMI) to 51.6 in June, from 52.8 in May.

(With inputs from Reuters)