Sensex, Nifty hit fresh intraday high

Key benchmark indices extended intraday gains and hit fresh intraday high in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was up 132.98 points or 0.40% at 33,759.95. The Nifty 50 index was up 43.10 points or 0.42% at 10,374.70. Strength in other Asian stocks boosted investors sentiment in the domestic market.

After opening on a dull note, the market moved higher and hit fresh intraday high in morning trade. The Sensex rose 180.96 points, or 0.54% at the day's high of 33,807.93 in morning trade, its highest intraday level since 15 March 2018. The index fell 48.06 points, or 0.14% at the day's low of 33,578.91 in early trade. The Nifty rose 59.65 points, or 0.58% at the day's high of 10,391.25 in morning trade, its highest intraday level since 15 March 2018. The index fell 3.10 points, or 0.03% at the day's low of 10,328.50 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.42%. The BSE Small-Cap index was up 0.62%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,537 shares rose and 588 shares fell. A total of 96 shares were unchanged.

Metal shares rose. Hindalco Industries (up 3.57%), National Aluminium Company (up 3.20%), Jindal Steel & Power (up 1.52%), Tata Steel (up 0.97%), JSW Steel (up 0.96%), Vedanta (up 0.81%) and Steel Authority of India (up 0.59%), edged higher. Hindustan Zinc (down 0.02%) and Hindustan Copper (down 0.76%), edged lower.

NMDC was up 0.84%. The company has set prices of lump ore at Rs 3000 per ton and fines at Rs 2660 per ton with effect from 4 April 2018. The announcement was made after market hours on Friday, 6 April 2018.

Most FMCG shares rose. Tata Global Beverages (up 2.46%), Bajaj Corp (up 1.96%), Procter & Gamble Hygiene & Health Care (up 0.76%), Marico (up 0.64%), Britannia Industries (up 0.42%), GlaxoSmithKline Consumer Healthcare (up 0.36%), Dabur India (up 0.29%), Nestle India (up 0.27%) and Hindustan Unilever (up 0.26%), edged higher. Godrej Consumer Products (down 0.09%), Colgate Palmolive (India) (down 0.27%) and Jyothy Laboratories (down 0.46%), edged lower.

Tata Chemicals rose 0.41% after the company signed a business transfer agreement with Allied Silica to acquire their business of precipitated silica, on a slump sale basis. The announcement was made on Sunday, 8 April 2018.

The transaction includes the acquisition of an existing manufacturing site for manufacturing precipitated silica in Tamil Nadu, which has been recently commissioned. The acquisition involves cash consideration of upto Rs 123 crore to be paid subject to fulfillment of certain agreed conditions and milestones. This acquisition is a part of the Rs 295 crore investment approved by the board of Tata Chemicals in February 2017, for entry into the Highly Dispersible Silica (HDS) business, which was informed to the Stock Exchanges on 9 February 2017. The acquisition is expected to be closed within 3 months. Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings, agrochemicals, etc. The acquisition also offers the possibility to make value added silica in the future for applications that demand high performance.

Overseas, Asian stocks were trading higher. China has tightened restrictions on exports to North Korea of items with potential dual use in weapons of mass destruction and conventional arms. The ban on exports of potential dual-use items, including software, machinery and chemicals, is in line with UN Security Council resolution number 2375. That resolution was passed in September.

US stocks closed sharply lower on Friday, 6 April 2018, led by a selloff in industrials and financials, as investors continued to fret over an escalating China-US trade fight.

The selling pressure followed Federal Reserve Chairman Jerome Powell's speech in which he backed a patient approach to raising interest rates. The Fed chairman said going slow on rate hikes has also reduced the risk of an unforeseen blow to the economy that might have pushed the economy into recession.

Investors also digested a weaker-than-expected jobs report that showed that wage growth remains tepid. The US economy added just 103,000 new jobs in March. The unemployment rate was unchanged at 4.1%.

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