Metal stocks extend gains

Key benchmark indices were trading in a small range in positive terrain in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 45.14 points or 0.14% at 31,254.78. The Nifty 50 index was up 17.05 points or 0.18% at 9,630.35. A private survey showing service sector expanding at its fastest pace in eight months in June perked up sentiment. Gains in most Asian stocks also supported gains on local indices.

The S&P BSE Mid-Cap index rose 0.63%. The S&P BSE Small-Cap index gained 0.9%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,492 shares rose and 754 shares fell. A total of 120 shares were unchanged.

Tata Motors rose 1.41% after the company said that it has slashed prices of passenger vehicles post GST, passing benefits of GST to its customers. The announcement was made during market hours today, 5 July 2017. The company offered a price reduction of upto 12% ranging between Rs 3,300 and Rs 2.17 lakh depending on the model and variant.

Metal and mining stocks gained for the third straight day. JSW Steel (up 1.76%), Bhushan Steel (up 0.01%), Hindustan Copper (up 0.92%), Vedanta (up 1.1%), Hindalco Industries (up 0.83%), Hindustan Zinc (up 0.87%), Jindal Steel & Power (up 0.71%), Tata Steel (up 1.01%), Steel Authority of India (Sail) (up 0.51%), and National Aluminum Company (up 0.37%) gained.

NMDC declined 0.22% after the company reduced prices of lump iron ore by 8.24% to 2,225 per wet metric tonne (WMT) from prices of last month. Fine iron ore price shed 9.15% to Rs 1,985 per WMT. The rates will be effective from 5 July 2017. The announcement was made after market hours yesterday, 4 July 2017.

Cement stocks were mixed. Shree Cement (up 0.47%), Ambuja Cements (up 1.23%), and UltraTech Cement (up 0.63%) gained. ACC fell 0.29%.s

Grasim Industries declined 0.05%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

McNally Bharat Engineering Company gained 4.25% after the company said that it has received an order for construction of entry/exit structure of Elamkulam station and balance works in the main station building at Elamkulam from Delhi Metro Rail Corporation for a value of Rs 43.49 crore (approximately). The announcement was made after market hours yesterday, 4 July 2017.

On macroeconomic data front, activity in India's dominant service sector expanded at its fastest pace in eight months in June as new business orders surged, a private survey showed. The Nikkei/IHS Markit Services Purchasing Managers' Index climbed to 53.1 in June from the previous month's 52.2. June was the fifth consecutive month the index has been above the 50 mark that separates growth from contraction.

Overseas, most Asian stocks rose amid geopolitical concerns after North Korea launched a long-range ballistic missile. North Korea reportedly claimed today, 5 July 2017 the missile it launched yesterday, 4 July 2017 was an intercontinental ballistic missile capable of carrying a heavy nuclear warhead. The missile launched on Tuesday, 4 July 2017 landed in Japan's exclusive economic zone (EEZ).

On macroeconomic data front, the Caixin services Purchasing Managers' Index (PMI) showed that growth in China's services sector slowed in June. The Caixin services PMI fell to 51.6 from the 52.8 figure seen in May. The June composite PMI, which takes into account both the services and manufacturing sectors, fell to 51.1 compared with the 51.5 number seen last month.

Activity in Japan's services sector accelerated from the previous month to expand at its fastest pace in almost two years, a private survey showed. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in June from 53 in May as new business, outstanding business and hiring expanded.

US markets were closed yesterday, 4 July 2017 for Independence Day.

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