Barometers trade with modest gains

The market pared gains and traded with modest gains in early afternoon trade. At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 164.22 points or 0.46% at 35,516.83. The Nifty 50 index was up 55.10 points or 0.52% at 10,659.45. Positive cues from other Asian stocks boosted investors sentiment.

The market opened higher and hit fresh intraday high in morning trade. Indices came off day's high in mid-morning trade and they further pared gains in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.38%. The BSE Small-Cap index was up 0.51%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1281 shares rose and 938 shares fell. A total of 124 shares were unchanged.

Cement shares were in demand. ACC (up 2.19%), Ambuja Cements (up 2.17%) and UltraTech Cement (up 1.92%), edged higher.

Grasim Industries was up 1.40%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most telecom shares climbed. MTNL (up 0.92%), Bharti Airtel (up 0.74%) and Tata Teleservices (Maharashtra) (up 0.32%), edged higher. Vodafone Idea (down 0.33%) and Reliance Communications (down 6.48%), edged lower.

Overseas, most Asian shares traded higher on Wednesday after US-China trade talks resumed. Investors also awaited the release later on Wednesday of minutes from the US Federal Reserve's January policy-setting meeting, where policymakers took a dovish turn, effectively signaling no further rate hikes.

US stock indices held steady above the break-even line after opening lower on Tuesday. US President Donald Trump reportedly said Tuesday that trade talks with China are going well, adding the current March deadline is not a "magical date." Both countries have until then to come up with a deal. Otherwise, additional US tariffs on Chinese products could take effect. Trump indicated last week, however, he would be willing to push back the deadline.

Representatives from the US and China are meeting in Washington this week to resume trade negotiations, with high level discussions set to happen later in the week, the White House said Monday. US is reportedly seeking to secure a pledge from China that it will not devalue its yuan currency as part of a trade deal.

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