Metal and mining stocks shine

Firmness prevailed on the bourses in early afternoon trade on steady buying demand in index pivotals. At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 306.45 points or 0.83% at 37,291.09. The Nifty 50 index was up 83.15 points or 0.74% at 11,250.45. Metal and mining stocks gained. Positive Asian stocks boosted sentiment on the domestic bourses.

Key benchmark indices saw a gap-up opening triggered by positive Asian stocks. Stocks extended gains and hit fresh record high in morning trade. The Sensex and the Nifty, both, scaled fresh record high in morning trade. Stocks held firm in mid-morning trade on sustained buying demand in index pivotals.

The S&P BSE Mid-Cap index was up 1%. The S&P BSE Small-Cap index was up 0.95%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1477 shares rose and 869 shares fell. A total of 143 shares were unchanged.

Adani Ports and Special Economic Zone (APSEZ) lost 1.21%. APSEZ after market hours yesterday, 26 July 2018 said it had signed a long term agreement with GAIL (India) to provide Liquefied Natural Gas (LNG) regasification services on a use or pay basis, at its upcoming LNG import terminal at Dhamra in Odisha. The terminal is expected to be commissioned during the second half of 2021.

As per the contract, GAIL (India) has booked 1.5 million tonnes per annum (MTPA) regasification capacity for a period of 20 years. GAIL plans to supply the gas to its portfolio of customers located in the eastern region and along the under development Jagdishpur- Haldia gas grid.

The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 MTPA, expandable up to 10 MTPA. Initially, it will have two full containment type tanks of 180,000 m3 capacity each. It will be first of its kind in India and second LNG terminal on the east coast after IOC's Ennore terminal in Tamilnadu.

Metal and mining stocks gained following a series of steps by China shifting to stimulus mode. China is the world's largest consumer of steel, copper and aluminum.

JSW Steel (up 1.76%), Tata Steel (up 1.93%), Steel Authority of India (Sail) (up 0.81%), National Aluminium Company (up 0.03%), Hindustan Zinc (up 0.42%), Jindal Steel & Power (up 2.1%), Vedanta (up 0.69%), NMDC (up 2.3%) and Hindustan Copper (up 1.12%) edged higher.

Hindalco Industries rose 3.69%. Hindalco Industries announced that its wholly-owned subsidiary, Novelis Inc, announced signing of a definitive agreement to purchase Aleris Corporation, a global aluminium rolled products major, headquartered in the United States, for $2.58 billion in a debt finance deal. The announcement was made after market hours yesterday, 26 July 2018.

Aleris is a privately held company and is amongst the leading producers in aluminium rolled products globally. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia.

Overseas, most Asian stocks edged higher following a series of steps by China shifting to stimulus mode. Investors are awaiting the second-quarter US GDP report due later in the day.

US stocks closed mostly lower on Thursday, weighed down by sharp losses in technology shares as Facebook posted its biggest one-day drop ever following disappointing quarterly results. Investors cheered Wednesday's upbeat meeting between Trump and the European Commission's president.

In economic data, the US trade deficit in goods widened to $68.3 billion in June, up 5.5% or $3.6 billion, according to the Commerce Department's advanced estimate released Thursday.

Elsewhere, European Central Bank left interest rates unchanged and affirmed its plan to end its monthly bond-buying program in December, as had been expected. In addition, ECB President Mario Draghi said that uncertainty around the inflation outlook was receding.

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