Positive market breadth; metals shares advance

The market traded with modest gains in mid-morning trade, supported by firm global cues. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 273.20 points or 0.79% at 34,643.78. The Nifty 50 index added 90 points or 0.89% at 10,257.45.

In the broader market, the S&P BSE Mid-Cap index gained 1.08% while the S&P BSE Small-Cap index rose 0.47%.

The market breadth was positive. On the BSE, 1296 shares rose and 911 shares fell. A total of 126 shares were unchanged. In the Nifty 50 index, 36 shares advanced while 14 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 813.27 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,238.23 crore in the Indian equity market on 8 June, provisional data showed.

Buzzing Index:

The Nifty Metal index rose 1.13% to 2,068.15, extending gains for fourth day. The index has added 5.9% in four sessions.

NMDC (up 2.63%), Jindal Steel & Power (up 2.5%), Hindalco Industries (up 2.15%), Tata Steel (up 2.05%), JSW Steel (up 1.23%), Vedanta (up 1.05%), Steel Authority of India (up 0.92%), Hindustan Zinc (up 0.9%) and National Aluminium Company (up 0.3%) advanced while Hindustan Copper shed 2.34%.

Stocks in Spotlight:

Bharat Heavy Electricals (up 0.71%), Vodafone Idea (down 10.68%), Just Dial (down 3.68%) and NCC (down 2.72%) are banned from trading in NSE's F&O segment after the securities crossed 95% of the market wide position limit.

Rites added 0.67% to Rs 249. The company's joint venture has bagged an order of Rs 55 crore from National Highways & Infrastructure Development Corporation (NHIDCL) for providing consultancy services for construction of highway tunnels in Himachal Pradesh & Ladhak.

Affle India rose 3.57% to Rs 1534.40. The company said that its wholly-owned Singapore subsidiary, Affle International, has entered into a definitive share purchase agreement to acquire 66.67% ownership in Appnext incorporated in Singapore (Appnext Singapore) immediately and options to acquire the remaining 28.33% shares and 5% shares of Appnext Singapore within 3 years and 5 years respectively from the closing of the share purchase agreement.

Further, Affle MEA FZ-LLC, a subsidiary of Affle International, has entered into an intellectual property (IP) purchase agreement to acquire 100% Tech IP assets of Appnext incorporated in British Virgin Islands (Appnext BVI).

A total consideration of $17.25 million for 66.67% of equity ownership and transfer of the Tech IP assets, will be paid over next 12 months from the date of closing of the agreements. This acquisition consolidates Affle's position in India, while providing a complementing presence in South East Asia and other International markets.

Global Markets:

Asian stocks were trading higher on Tuesday, after an overnight rally in US market that saw the S&P 500 entering positive territory for the year.

In US, the Nasdaq posted a record closing high on Monday, while the Dow and S&P 500 ended higher as lockdown measures eased in New York City and elsewhere, sparking optimism about the potential for economy recovery.

Investors were heartened by efforts to reopen the US economy in the aftermath of pandemic-related closures. Reopening plans are in various stages in all 50 U.S. states. New York City, one of the regions hardest hit by coronavirus, launched the first phase of its reopening on Monday, including the restart of construction and limited retail operations.

The US central bank's two-day monetary policy meeting, starting later in the day, may provide some forward guidance as the economy gradually starts showing signs of recovery. Investors also will keep an eye on what the central bank does next, with the Fed set to release its updated policy statement on Wednesday and its first set of economic projections since December.

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