Sensex ekes out modest gains in early trade

Key benchmark indices were trading flat-to-positive in early trade. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 50.36 points or 0.16% at 31,153.85. The Nifty 50 index was down 1.10 points or 0.01% at 9,605.80. Gains were led by index heavyweight Reliance Industries (RIL).

The S&P BSE Mid-Cap index was down 0.26%. The S&P BSE Small-Cap index was up 0.09%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 799 shares rose and 739 shares fell. A total of 74 shares were unchanged.

Overseas, most Asian stocks were trading lower as investors awaited clarity on the Federal Reserve's future path for US policy after a likely rate rise later in the day. In US, the Dow and the S&P 500 closed at records yesterday, 13 June 2017, as technology shares rebounded following a two-day decline.

The US Federal Reserve's two-day meet ends today, 14 June 2017 and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.

Back home, Reliance Industries (RIL) (up 1.5%), Power Grid Corporation of India (up 1.12%) and Lupin (up 0.89%) edged higher from the Sensex pack.

Mahindra & Mahindra (M&M) rose 0.06% after the company said that its board of directors at a meeting held on 13 June 2017, approved sale of a part of its shareholding in Mahindra Logistics (MLL), a subsidiary of the company, as part of the proposed initial public offer (IPO) of MLL, subject to requisite approvals and market conditions. The size of the stake sale, price and other details of the IPO will be determined in due course by a Committee of Directors. The announcement was made after market hours yesterday, 13 June 2017.

Dr Reddy's Laboratories gained 1.75% after the company said that it has received Establishment Inspection Report (EIR) from the United States Food and Drug Administration on 13 June 2017 as closure of audit for the company's API manufacturing plant at Miryalaguda. This unit was inspected by the USFDA in February 2017 and Dr Reddy's was issued form 483 with three observations. The announcement was made after market hours yesterday, 13 June 2017.

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