Metal and mining stocks shine

Volatility ruled the roost in mid-afternoon trade as the key benchmark indices hit fresh intraday high after reversing intraday gains to hit intraday low in negative zone in afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 130.35 points or 0.41% at 31,832.60. The Nifty index was up 42.40 points or 0.43% at 9,955.25. Gains were led by index heavyweights Reliance Industries and HDFC. Positive European stocks boosted sentiment on the domestic bourses.

Domestic stocks drifted higher in early trade. Key benchmark indices hovered within a narrow zone in the positive terrain till early afternoon trade. Stocks recovered after nosediving into the negative terrain in afternoon trade tracking firmness in European stocks.

The S&P BSE Mid-Cap index was up 0.48%. The S&P BSE Small-Cap index was up 0.95%. Both these indices outperformed the Sensex.

The market breadth, indicating health of the market, was strong. On BSE, 1,594 shares rose and 862 shares fell. A total of 152 shares were unchanged.

Index heavyweight and housing finance major HDFC advanced 0.57% to Rs 1,765.50.

Metal and mining stocks gained. Hindustan Zinc (up 1.44%), Jindal Steel & Power (up 0.43%), NMDC (up 0.26%), Hindustan Copper (up 1.67%), Vedanta (up 0.62%), Tata Steel (up 0.91%), Steel Authority of India (Sail) (up 0.56%) and National Aluminium Company (up 0.54%) edged higher. JSW Steel (down 0.22%) and Hindalco Industries (down 0.31%) declined.

Dewan Housing Finance Corporation rose 4.08% to Rs 542, on sustained buying interest. Shares of Dewan Housing Finance Corporation have rallied 20.15% in ten trading sessions to its ruling market price, from its close of Rs 448.80 on 21 August 2017.

On the macro front, data released during market hours today, 5 September 2017 showed the Nikkei India Services Purchasing Managers' Index (PMI) rose to 47.5 in August from July's 45.9. The Indian service sector was again impacted by the goods and services tax (GST) during August as a second consecutive drop in new business resulted in another monthly decline in activity, the PMI survey said.

Overseas, European stocks were trading higher while Asian stocks were mixed on lingering tensions between the US and North Korea. 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. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

Japan's services sector expanded in August at the slowest rate in six months. The Markit/Nikkei Japan Services PMI fell to a seasonally adjusted 51.6 from 52 in July.

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.

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