Positive market breadth; PSU banks advance

Key equity indices were trading in a narrow range near flat line in morning trade. At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 23.29 points or 0.07% at 35,732.97. The Nifty 50 index was down 6.10 points or 0.06% at 10,729.35. Metal shares were in demand. Shares of PSU banks advanced.

Broader market outperformed the main stock indices. Among secondary barometers, the BSE Mid-Cap index was up 0.40%. The BSE Small-Cap index was up 0.44%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1041 shares rose and 731 shares fell. A total of 97 shares were unchanged.

Metal shares were in demand. Vedanta (up 1.75%), NMDC (up 1.06%), Hindustan Zinc (up 0.91%), Jindal Steel & Power (up 0.80%), Hindalco Industries (up 0.75%), Hindustan Copper (up 0.67%), Steel Authority of India (up 0.63%), Tata Steel (up 0.57%) and JSW Steel (up 0.24%), edged higher. National Aluminium Company was down 1.81%.

Shares of PSU banks advanced after the government on Wednesday decided to infuse Rs 48,239 crore in 12 public sector banks as part of the recapitalisation plan, which will help them maintain regulatory capital requirements and finance growth plans.

Corporation Bank (up 14.51%), United Bank of India (up 7.59%), UCO Bank (up 7.58%), Andhra Bank (up 5.85%), Allahabad Bank (up 5.68%), Central Bank of India (up 5.67%), Bank of Maharashtra (up 5.5%), Punjab National Bank (up 3.31%), Union Bank of India (up 3.31%), Syndicate Bank (up 3.12%), Bank of India (up 3%), Punjab & Sind Bank (up 2.98%), Dena Bank (up 2.64%), Vijaya Bank (up 2.5%), Canara Bank (up 1.99%), State Bank of India (up 0.84%) and Bank of Baroda (up 0.05%), edged higher. Indian Bank (down 0.27%) and IDBI Bank (down 0.34%), edged lower.

Overseas, Asian shares were trading higher on Thursday. US stock indices ended the choppy session moderately higher Wednesday, following the release of minutes from the US Federal Reserve's January meeting.

Fed minutes affirmed it would be "patient" on interest rate rises. Fed highlighted downside risks, including "the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions.

The minutes showed extensive discussion of market conditions, particularly on the emphasis that Fed actions were having on prices of risky assets like stocks and corporate bonds. The Fed also judged that a "patient" approach to interest rate hikes would be prudent as it continued to weigh various headwinds to growth.

On the trade front, President Donald Trump said Tuesday that the US may not increase tariffs on Chinese goods as scheduled after March 1, but he did raise the specter of addressing auto tariffs in Europe.

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