Broader market rallies

The market firmed up further in early afternoon trade on strong buying support. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 362.42 points or 1.03% at 35,541.30. The Nifty 50 index was up 107.30 points or 1% at 10,791.95. Positive leads from Asian markets and overnight rally on the Wall Street boosted sentiment. Sustained buying by domestic institutional investors also supported shares.

The indices hit fresh intraday high in early afternoon trade after opening with strong gains. The Sensex rose 366.42 points, or 1.04% at the day's high of 35,545.30 in early afternoon trade, its highest level since 4 June 2018. The index rose 99.50 points, or 0.28% at the day's low of 35,278.38 in morning trade. The Nifty rose 108 points, or 1.01% at the day's high of 10,792.65 in early afternoon trade, its highest level since 15 May 2018. The index rose 37.95 points, or 0.36% at the day's low of 10,722.60 in morning trade.

Broader market witnessed strong buying support. Among secondary barometers, the BSE Mid-Cap index was up 1.25%. The BSE Small-Cap index was up 1.84%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1813 shares rose and 597 shares fell. A total of 99 shares were unchanged.

Cement shares rose across the board. Ambuja Cements (up 1.32%), UltraTech Cement (up 0.71%) and ACC (up 0.57%), edged higher.

Grasim Industries was up 1.70%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom shares rose. MTNL (up 5.33%), Idea Cellular (up 2.62%), Tata Teleservices (Maharashtra) (up 2.04%), Reliance Communications (up 0.63%) and Bharti Airtel (up 0.43%), edged higher.

Telecom tower infrastructure provider Bharti Infratel was down 0.10%.

Overseas, Asian shares rose following overnight gains on Wall Street, which saw the Dow Jones industrial average close above 25,000.

In US, the Dow Jones Industrial Average recorded its best daily gain since mid April as a rally in bank shares amplified a broad-market run-up that has been supported by gains in internet and technology shares. Market participants attributed Wednesday's rally to rising government bond rates. Higher rates tend to benefit the business of financials.

A rise in the yield of the benchmark 10-year Treasury note was supported by remarks from European Central Bank (ECB) senior officials, which showed the central bank remained on track to debate the timetable for ending its asset purchases soon.

Underlying strength in the euro area economy was making ECB confident that inflation will move toward target. The institution would next week discuss how it will wind down its 30 billion euro (about $35 billion) monthly-purchase program.

On the data front, the US trade deficit shrank 2.1% in April and tumbled to a seven-month low. Meanwhile, the productivity of American businesses rose at a revised 0.4% annual pace in the first quarter instead of 0.7% as originally reported. Outputor goods and services producedclimbed 2.7% instead of 2.8%, while unit-labor costs, or how much it costs to make each product, rose by 2.9%, a bit higher than the preliminary 2.7% estimate.

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