Broad market depicts strength

Key benchmark indices hovered in positive zone in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 79.03 points or 0.25% at 31,781.28. The Nifty index was up 22.65 points or 0.23% at 9,935.50. Gains were led by index heavyweights Reliance Industries and HDFC Bank.

Domestic stocks drifted higher in early trade led by index heavyweights Reliance Industries and HDFC Bank.

The S&P BSE Mid-Cap index was up 0.51%. The S&P BSE Small-Cap index was up 0.84%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,455 shares rose and 518 shares fell. A total of 89 shares were unchanged.

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.

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.

Back home, cement stocks rose. Ambuja Cements (up 1.03%), ACC (up 0.16%), Shree Cement (up 0.12%) and UltraTech Cement (up 0.95%) gained.

Grasim Industries was up 0.3%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Realty stocks gained. Indiabulls Real Estate (up 1.81%), Housing Development and Infrastructure (up 1.2%), D B Realty (up 1.51%), DLF (up 0.77%), Sobha (up 0.36%), Godrej Properties (up 0.25%) and Oberoi Realty (up 0.75%) rose. Unitech (down 0.51%) and Prestige Estates Projects (down 0.68%) fell.

Dilip Buildcon rose 1.31% to Rs 582 at 9:25 IST on BSE, with the stock recovering on bargain hunting after recent slide. Shares of Dilip Buildcon had fallen 7.7% in the preceding four trading sessions to settle at Rs 574.50 yesterday, 4 September 2017, from its closing of Rs 622.45 on 29 August 2017.

IRB Infrastructure Developers rose 1.59% after the company said it started toll collection and construction at Udaipur tollway. The announcement was made after trading hours yesterday, 4 September 2017.

IRB Infrastructure Developers announced that its wholly-owned subsidiary, Udaipur Tollway, incorporated for implementation of six-laning from Udaipur to Rajasthan/Gujarat Border project has received the appointed date from the competent authority. Accordingly, the special purpose vehicle (SPV) started toll collection and also construction on the project from 3 September 2017.

The project is on design, build, finance, operate and transfer (DBFOT) pattern. The concession period of the project is 21 years, including construction period of 910 days. The company started toll collection on the project from appointed date i.e. 3 September 2017 being six lanning project. The company has offered premium of Rs 163.80 crore to National Highways Authority of India (NHAI). The premium payment will commence after three years from the appointed date in terms of the concession agreement.

On the macro front, Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in August 2017 today, 5 September 2017.

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