Sensex, Nifty gain as pivotals advance

Stocks logged modest gains in steady session of trade on sustained buying demand in index pivotals especially TCS, SBI and RIL. The barometer index, the S&P BSE Sensex, rose 209.05 points or 0.59% at 35,692.52, as per the provisional closing data. The Nifty 50 index rose 55.90 points or 0.52% at 10,842.85, as per the provisional closing data.

Domestic stocks edged higher in early trade. Key benchmark indices extended gains in morning trade. Stocks hovered in positive zone in mid-morning trade. Firmness prevailed on the bourses in early afternoon trade. Indices turned volatile and trimmed gains in afternoon trade. Indices hovered in positive zone in mid-afternoon trade. Stocks hit fresh intraday high in late trade.

The S&P BSE Mid-Cap index rose 0.9%, outperforming the Sensex. The S&P BSE Small-Cap index was up 0.54%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1440 shares rose and 1224 shares fell. A total of 142 shares were unchanged.

Dr Reddy's Laboratories (up 5.4%), SBI (up 3.78%), Hindustan Unilever (up 2.38%), Hero MotoCorp (up 2.11%) and RIL (up 1.51%) edged higher from the Sensex pack.

Bharti Airtel (down 1.74%), Tata Steel (down 1.63%) and Coal India (down 1.3%) edged lower from the Sensex pack.

L&T rose 1.65%. The Heavy Civil Infrastructure business of L&T Construction will design and construct a 3.2 km, six-lane iconic bridge across the river Krishna, which includes 2.72 km of approach bridges, on EPC basis. The bridge will connect Pavitrasangamam in Vijayawada and N10 Road in Amaravati. The Rs 1387 crore project was received from Amaravati Development Corporation (ADCL) and L&T has also been entrusted with the operation and maintenance for the bridge for five years. The announcement was made during market hours today, 12 June 2018.

Tata Consultancy Services (TCS) rose 1.79%. TCS has expanded its agreement with M&G Prudential, the UK and European savings and investments business of Prudential pic. The 10 year partnership, which was announced in January 2018, aimed to digitally transform M&G Prudential's business and deliver an enhanced service for its UK savings and retirement customers. The announcement was made during market hours today, 12 June 2018.

The agreement has now been expanded to cover an additional 1.8 million customer policies which will move from M&G Prudential to TCS, bringing the total number of policies covered by the partnership to 5.8 million, and is worth an additional 500 million ($668 million USD) over the term of the contract. The expanded partnership further cements TCS' position as the market leader in UK life and pension administration, with more than 18 million policies being administered by its BFSI Digital Platform, powered by TCS BaNCS.

IndusInd Bank rose 2.41%. The Overseas Private Investment Corporation (OPIC) announced that $5 million in local currency financing has been mobilized to Grameen Impact under an OPIC loan guarantee agreement with IndusInd Bank. The financing was deployed through IndusInd Bank's Impact Investing division, which will support Grameen Impact's lending to local small and medium enterprises. The announcement was made during market hours today, 12 June 2018.

Traders and investors are closely awaiting a series of domestic and global events this week. Consumer price index (CPI)-inflation and index of industrial production (IIP) data is due today, 12 June 2018, while the wholesale price index (WPI) inflation data will be announced on Thursday, 14 June 2018.

On the global front, North Korean leader Kim Jong Un and US President Donald Trump have met at the Capella Hotel in Sentosa island, Singapore for a historic summit, after both sides sought to narrow differences over how to end a nuclear standoff. The historic meeting has come to an end. Trump and Kim Jong Un have reportedly signed an unspecified document in Singapore, amid Trump's comment that North Korea's denuclearization process will begin very quickly.

The US Federal Reserve is expected to raise interest rates Wednesday, 13 June 2018 as the US economy remains solid. European Central Bank rates decision is on Thursday, 14 June 2018 in which policy makers are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets on Friday, 15 June 2018 with no change to policy expected.

In the overseas market, most European stocks fell as investors awaited the Brexit vote in the House of Commons for further direction. Most Asian stocks rose after US President Donald signed a deal with the North Korean leader, with the latter claiming there will be a major change in the world. US stocks rose in a relatively quiet day yesterday, 11 June 2018 as investors started a hectic week during which three major central banks set interest rates.

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