Market pares gains; breadth positive

Key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. The S&P BSE Sensex was up 55.51 points or 0.28%, off close to 137 points from the day's high and up about 150 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Index heavyweight and cigarette maker ITC extended intraday gains. IT shares were in demand. Mahindra Lifespace Developers jumped over 4% after board recommended hiking foreign institutional investors' investment limit in the company.

The market recovered after slipping into the red after opening slightly higher. The Sensex hovered in negative terrain in morning trade. Key benchmark indices reversed intraday losses and hit fresh intraday high in mid-morning trade. The Sensex extended gains to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains after hitting fresh intraday high in afternoon trade.

At 13:20 IST, the S&P BSE Sensex was up 55.51 points or 0.28% to 19,575. The index jumped 192.06 points at the day's high of 19,711.55 in afternoon trade, its highest level since 4 June 2013. The index lost 94.52 points at the day's low of 19,424.97 in early trade.

The CNX Nifty was up 9.50 points or 0.16% to 5,930.90. The index hit a high of 5,972.70 in intraday trade, its highest level since 4 June 2013. The index hit a low of 5,886.60 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,104 shares rose and 1,058 shares fell. A total of 159 shares were unchanged.

Among the 30-share Sensex pack, 18 stocks fell and rest of them rose. Dr. Reddy's Laboratories (up 2.89%), Hero MotoCorp (up 1.40%), Tata Power (up 1.02%), Hindalco Industries (up 0.83%) and HDFC (up 0.53%), edged higher from the Sensex pack.

Maruti Suzuki India (down 1.34%), Bharti Airtel (down 0.63%), Cipla (down 0.63%), NTPC (down 0.56%), Coal India (down 0.53%) and Jindal Steel & Power (down 0.44%), edged lower from the Sensex pack.

Index heavyweight and cigarette maker ITC rose 0.61%, extending intraday gains.

Shares of IT companies were in demand amid recent weakness in rupee against the dollar. TCS (up 2.97%), Wipro (up 1.92%), Hexaware Technologies (up 1.76%), Tech Mahindra (up 1.56%), Infosys (up 1.54%), Mahindra Satyam (up 1.14%), CMC (up 1.03%), Oracle Financial Services Software (up 0.86%) and HCL Technologies (up 0.23%), edged higher. However, MphasiS fell 0.27%.

The rupee recovered by 4 paise to 56.80 today, 7 June 2013, versus its previous close of 56.84. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Mahindra Lifespace Developers jumped 4.24% to Rs 402.95 after the company's board recommended seeking shareholders' approval to hike foreign institutional investors' (Flls) investment limit to 49% from 30% of the company's paid up equity share capital, under the portfolio investment scheme of the Reserve Bank of India. The announcement was made during market hours today, 6 June 2013.

European markets were mostly higher. Key benchmark indices in France and Germany were up 0.03% and 0.09% respectively. However, UK's FTSE 100 was down 0.09%.

The European Central Bank (ECB) and the Bank of England (BoE) on Thursday, 6 June 2013, held their main interest rates at record lows, with the ECB saying data supports its forecast of a gradual economic recovery across the region. The ECB and BoE both held their benchmark interest rates at the record-low level of 0.5%.

Asian stocks fell on Friday as gains in yen weighed on Japanese shares and as investors awaited a US jobs report later in the global day. Key benchmark indices in Singapore, Japan, Indonesia, Taiwan and South Korea shed 0.01% to 1.88%.

Chinese stocks dropped ahead of a long weekend and before the release of a slew of economic data over the next three days, including monthly inflation and exports. Key benchmark indices in China and Hong Kong were off 1.16% to 1.39%. Mainland Chinese markets are closed from Monday, 10 June 2013 to Wednesday, 12 June 2013, for the Dragon Boat Festival.

Trading in US index futures indicated that the Dow could fall 35 points at the opening bell on Friday, 7 June 2013. US stocks ended higher on Thursday, snapping a two-session losing streak, as investors eagerly awaited Friday's May employment report for clues about monetary policy. Data showed that US jobless claims fell by 11,000 to 346,000 in the week ended June 1, essentially in line with expectations.

Federal Reserve Chairman Ben Bernanke said last month that the bank could start scaling back its aggressive easing program in coming months if data continue to improve.

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