Metal and mining stocks shine

Stocks hovered in near day's high in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was up 108.63 points or 0.32% at 34,440.31. The Nifty 50 index was up 34.70 points or 0.33% at 10,560.90. Metal and mining stocks were in demand as copper prices rose in global commodity markets. Positive Asian stocks boosted sentiment on the domestic bourses.

Key indices resumed uptrend after taking a one-day pause yesterday, 18 April 2018 on positive Asian stocks. Stocks had corrected yesterday, 18 April 2018 after rising in past nine consecutive sessions. On that day, the barometer index, the S&P BSE Sensex, fell 63.38 points or 0.18% at 34,331.68 while the Nifty 50 index fell 22.50 points or 0.21% at 10,526.20. The Sensex had jumped 1,375.99 points, or 4.17% in nine trading sessions to settle at 34,395.06 on 17 April 2018, from its low of 33,019.07 on 4 April 2018.

Coming back to today's trade, the S&P BSE Mid-Cap index was up 0.31%. The S&P BSE Small-Cap index was up 0.28%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,106 shares rose and 919 shares fell. A total of 105 shares were unchanged.

Overseas, Asian stocks rose, building on gains a day earlier, with oil prices at 3-year highs helping to boost sentiment for the region's equities.

In US, the Dow industrials ended lower yesterday, 18 April 2018 as IBM's shares got walloped; however, gains in shares of energy-related firms helped the broader market post modest gains. Wall Street showed a muted reaction to the release of the Beige Book report, which underscored that economic activity remained at a modest to moderate pace in March and early April.

The Fed's Beige Book showed that economic activity remained at a modest to moderate pace, though nine of the 12 regional banks expressed concerns about trade tariffs, centered on the tit-for-tat spat between Beijing and Washington.

Back home, Axis Bank (down 1.38%), Bajaj Auto (down 0.62%) and Sun Pharmaceutical Industries (down 0.61%) edged lower from the Sensex pack.

Metal and mining stocks were in demand as copper prices rose in global commodity markets. Stocks were also boosted after US firm Alcoa reportedly predicted a global deficit for both aluminium and alumina in 2018 due to delays in projects to expand smelters in China.

Hindustan Copper (up 10.85%), Vedanta (up 4.31%), JSW Steel (up 2.39%), Tata Steel (up 2.14%), Steel Authority of India (Sail) (up 2.26%), National Aluminium Company (up 6.42%), Hindustan Zinc (up 2.65%), Jindal Steel & Power (up 2.88%) and Hindalco Industries (up 4.84%) edged higher.

NMDC rose 1.3%. NMDC said it has reduced prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from 18 April 2018. The announcement was made after market hours yesterday, 18 April 2018.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.4% at $3.1710 per pound on the COMEX.

Bharat Dynamics rose 2.39% after the company said it signed licensing agreement with DRDO for Astra MK-1 Weapon System. Limited scale of production will commence shortly on suitable arrangements from DRDO. The announcement was made after market hours yesterday, 18 April 2018.

Container Corporation of India rose 0.9% after the company said that its board may consider stock split in its meeting scheduled on 30 April 2018. The announcement was made after market hours yesterday, 18 April 2018.

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