Auto, oil & gas stocks gain

Key benchmark indices trimmed gains in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 45.60 points or 0.14% at 31,747.85. The Nifty index was up 12.35 points or 0.12% at 9,925.20. Gains were led by index heavyweights Reliance Industries and HDFC Bank.

Domestic stocks drifted higher in early trade. Key benchmark indices hovered in positive zone in morning trade. Indices gyrated in a small range in mid-morning trade.

The S&P BSE Mid-Cap index was up 0.36%. The S&P BSE Small-Cap index was up 0.85%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,575 shares rose and 706 shares fell. A total of 134 shares were unchanged.

Oil & gas stocks gained. Shares of oil exploration and production (E&P) companies edged higher. ONGC (up 0.62%) and Oil India (up 0.19%) edged higher.

Reliance Industries gained 1.15% after a foreign brokerage house reportedly said it expects the oil and gas major's gross refining margins to gain on a global supply glut concerns.

Among PSU OMCs, HPCL (up 0.06%), BPCL (up 0.21%), and Indian Oil Corporation (up 0.55%) gained.

Among gas utility stocks, Gujarat State Petronet (up 0.07%), Gujarat Gas (up 3.62%) and GAIL (India) (up 0.62%) rose.

Indraprastha Gas rose 3.18% to Rs 1,302 on reports a foreign brokerage maintained its buy rating on the stock with price target of Rs 1,390. Meanwhile, media reports suggested that the eighth round of gas bidding license for gas distribution in Karnal, Haryana is set to go to Indraprastha Gas (IGL). License will be awarded in the next month when new members are likely to be appointed to the Petroleum & Natural Gas Regulatory Board. Compared with other bidders, IGL submitted highest performance bond of Rs 306 crore for Karnal, reports added.

Auto stocks rose. Bajaj Auto (up 1.42%), Tata Motors (up 0.51%), Maruti Suzuki India (up 0.31%), Eicher Motors (up 0.7%), Ashok Leyland (up 0.03%), Escorts (up 1.45%) and Hero MotoCorp (up 0.22%) gained. Mahindra & Mahindra (M&M) (down 0.31%) and TVS Motor Company (down 0.08%) declined.

Jenburkt Pharmaceuticals rose 10.46% after the company said its board will meet on 9 September 2017 to consider matters related to buyback of equity shares. The announcement was made during trading hours today, 5 September 2017.

On the macro front, data released during market hours today, 5 September 2017 showed the Nikkei India Services Purchasing Managers' Index (PMI) rose to 47.5 in August from July's 45.9. The Indian service sector was again impacted by the goods and services tax (GST) during August as a second consecutive drop in new business resulted in another monthly decline in activity, the PMI survey said.

Overseas, Asian stocks were trading on a mixed note as traders awaited further developments on the North Korea front. China's Caixin/Markit August services purchasing managers' index (PMI) today, 5 September 2017 showed an increase to 52.7 from 51.5 in the previous month. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

US financial markets remained closed yesterday, 4 September 2017 in observance of Labor Day. The US on Monday called for the strongest possible sanctions to be imposed on North Korea a day after the North said it had tested a hydrogen bomb.

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