Positive market breadth

Key equity benchmarks were trading near day's high in morning trade. At 10:35 IST, the barometer index, the S&P BSE Sensex, was up 221.26 points or 0.61% at 36,202.19. The Nifty 50 index was up 53.50 points or 0.50% at 10,855.65. The Sensex was trading above 36,000 mark. The Nifty was trading above 10,800 mark. Strong global cues boosted sentiment.

Among secondary barometers, the BSE Mid-Cap index was up 0.21%. The BSE Small-Cap index was up 0.28%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1087 shares rose and 795 shares fell. A total of 112 shares were unchanged.

Most metal shares declined. Jindal Steel & Power (down 2.03%), Steel Authority of India (down 1.93%), JSW Steel (down 0.61%) and Hindalco Industries (down 0.27%), edged lower. Vedanta (up 0.15%), Hindustan Copper (up 0.2%) and Hindustan Zinc (up 0.69%), edged higher.

NMDC was down 3.26%. The company board approved the proposal to buyback of not exceeding 10,20,40,815 equity shares (representing 3.23% of the total number of equity shares in the paid-up share capital of the company) at Rs 98 per equity share for an aggregate consideration not exceeding Rs 1000 crore from all the equity shareholders of the company, as on the record date, on a proportionate basis through a tender offer route. The announcement was made after market hours yesterday, 8 January 2019.

Tata Steel was down 2.05%. The company said that standalone steel production was marginally up in Q3 December 2018 over Q3 December 2017 with steady plant utilization. Sales volume was lower due to seasonal headwinds, particularly in terms of softer Automotive demand, and inventory replenishment. The announcement was made after market hours yesterday, 8 January 2019.

Most FMCG shares advanced. Nestle India (up 1.98%), Dabur India (up 1.5%), Hindustan Unilever (up 1.25%), GlaxoSmithKline Consumer Healthcare (up 0.72%), Marico (up 0.47%), Colgate Palmolive (India) (up 0.39%), Bajaj Corp (up 0.3%), Britannia Industries (up 0.29%) and Procter & Gamble Hygiene & Health Care (up 0.18%), edged higher. Jyothy Laboratories (down 0.12%), Godrej Consumer Products (down 0.19%) and Tata Global Beverages (down 0.19%), edged lower.

Meanwhile, India's GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, the World Bank has forecast, attributing it to an upswing in consumption and investment growth. The World Bank said India will continue to be the fastest growing major economy in the world.

Overseas, Asian shares rose on Wednesday, as investors remained cautiously optimistic Beijing and Washington could move forward on a trade deal. Investors will be watching out for developments on the US-China trade front after negotiations between the world's two largest economies extended into an unscheduled third day.

US stocks closed higher for a third straight session Tuesday as optimism over US-China trade talks bolstered sentiment.

On the US data front, small-business optimism fell in December, according to the National Federation of Independent Business small-business optimism index, which decreased 0.4 points to a seasonally adjusted level of 104.4, its lowest in 14 months.

The number of new job openings fell to its lowest level since June, at 6.89 million, down from 7.13 million in October, the Labor Department reported Tuesday.

The Census Bureau was scheduled to release data on the trade deficit Tuesday morning, but the release was delayed due to the government shutdown.

Oil prices also extended gains on hopes of progress in the trade talks. In the global commodities markets, Brent crude oil futures rose $1.39 a barrel or 2.42% to settle at $58.72 a barrel during the previous trading session.

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