Indices remain firm

Key indices held firm in afternoon trade as firmness in most global stocks supported gains on the domestic bourses. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 173.91 points or 0.55% at 31,765.94. The Nifty 50 index was up 67.85 points or 0.69% at 9,956.55. Capital goods stocks and realty stocks gained.

Domestic stocks edged higher in early trade on positive Asian stocks. Key benchmark indices extended early gains and hit fresh intraday high in morning trade. Indices held firm later during the session.

The S&P BSE Mid-Cap index was up 0.79%. The S&P BSE Small-Cap index was up 1.09%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,715 shares rose and 779 shares fell. A total of 94 shares were unchanged.

Realty stocks rose for the sixth straight day. DLF (up 0.64%), D B Realty (up 0.98%), Unitech (up 0.15%), NBCC (up 0.26%), Godrej Properties (up 1.81%), Housing Development & Infrastructure (HDIL) (up 0.44%), and Oberoi Realty (up 0.68%) edged higher. Sobha (down 0.58%) and Indiabulls Real Estate (down 0.94%) declined.

Capital goods stocks also gained. Bharat Heavy Electricals (Bhel) (up 0.84%), Havells India (up 0.11%), Bharat Electronics (up 1.68%), L&T (up 0.76%), Thermax (up 1.86%), and Siemens (up 0.92%) gained. ABB India declined 0.46%.

Aarey Drugs & Pharmaceuticals jumped 11.71% after the company said its board will meet on 12 October 2017 to reconsider stock split proposal. The announcement was made after market hours yesterday, 5 October 2017. Aarey Drugs & Pharmaceuticals had announced during market hours yesterday, 5 October 2017 that it fixed 13 October 2017 as the record date for the purpose of 10-for-1 stock split.

However, the company in a separate announcement after market hours yesterday, 5 October 2017, said that in interest of shareholders, it has decided to withdraw previously set record date for the stock split. In this regard, the company said its board will reconsider the proposal in a meeting on 12 October 2017.

Majestic Auto gained 3.3% after the company said it has shut down its fine blanking division which was a part of its manufacturing business vertical, due to unviable business operations viz. lack of viable orders & profitability. The announcement was made after market hours yesterday, 5 October 2017.

Overseas, most European stocks edged higher after orders for Germany's important manufacturing sector surged in August, more than compensating for July's unexpected decline, reflecting a solid upswing in the sector. The German economics ministry said that total manufacturing orders increased 3.6% compared with July, adjusted for seasonal swings and calendar effects.

Asian stocks followed their US counterparts higher after a slew of data and comments from Federal Reserve officials helped ratchet up bets that the US economy is strong enough to withstand higher interest rates. Stock markets in China and South Korea remained closed.

US stock-market indexes posted solid gains and closed at all-time highs yesterday, 5 October 2017 fueled by gains in technology stocks including Netflix, Microsoft and Amazon.com. After a House vote, the Senate approved a budget bill yesterday, 5 October 2017. Republicans passed tax cuts through what is known as budget reconciliation, which requires just a simple majority in the Senate. Republicans currently control the Senate with 52 seats.

Meanwhile, economic data released yesterday, 5 October 2017 pointed to underlying strength in the economy despite weather-related disruptions, with the trade deficit narrowing in August and jobless claims falling more than expected last week. The US trade deficit dropped 2.7% in August to $42.4 billion from $43.6 billion in July. Separately, initial jobless claims, a tool to measure US layoffs, fell by 12,000 to 260,000 at the end of September. The number of people already collecting unemployment benefits, known as continuing claims, rose very slightly to 1.94 million.

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