Sensex slips below 31,000 mark

Key benchmark indices sharply pared gains and hit fresh intraday low in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex was up 79.95 points or 0.26% at 30,914.27. The Nifty 50 index rose 27.70 points or 0.29% at 9,518.95. The Sensex slipped below the psychological 31,000 level after crossing that level in intraday trade. It had settled below that level during the previous trading session.

The Sensex surged 263.60 points or 0.85% at the day's high of 31,097.92 in early afternoon trade, its highest level since 27 June 2017. It rose 64.99 points or 0.21% at the day's low of 30,899.31 in afternoon trade.

The Nifty surged 84.55 points or 0.89% at the day's high of 9,575.80 in early afternoon trade, its highest level since 27 June 2017. It rose 21.45 points or 0.23% at the day's low of 9,512.70 in afternoon trade.

Market mood was, however, still positive ahead of nation-wide rollout of the ambitious indirect tax reform the Goods and Services Tax (GST) with effect from 1 July 2017.

Among other indices, the S&P BSE Mid-Cap index rose 0.43%. The S&P BSE Small-Cap index advanced 0.95%. Both these indices outperformed the Sensex.

Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,655 shares rose and 738 shares declined. A total of 132 shares were unchanged.

Metal shares were in demand. JSW Steel (up 3.06%), Bhushan Steel (up 2.67%), Jindal Steel & Power (up 2.43%), Tata Steel (up 2.42%), Vedanta (up 2.39%), Hindustan Copper (up 2.31%), NMDC (up 1.93%), Hindalco Industries (up 1.90%), Hindustan Zinc (up 1.02%), Steel Authority of India (up 0.96%) and National Aluminium Company (up 0.23%), edgd higher.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.99% at $2.7025 per pound on the COMEX.

Pharmaceutical shares rose. Strides Shasun (up 1.96%), Wockhardt (up 1.59%), Alkem Laboratories (up 1.24%), Aurobindo Pharma (up 0.98%), GlaxoSmithKline Pharmaceuticals (up 0.93%), Divi's Laboratories (up 0.75%), Cipla (up 0.46%), Glenmark Pharmaceuticals (up 0.28%), IPCA Laboratories (up 0.28%), Piramal Enterprises (up 0.16%), Dr Reddy's Laboratories (up 0.10%) and Lupin (up 0.06%), edged higher. Cadila Healthcare (down 0.33%) and Sun Pharmaceutical Industries (down 1.09%), edged lower.

The implementation of landmark tax reform Goods and Services Tax (GST) will be closely watched. On the night of 30 June 2017, there will be a special function in the Central Hall of Parliament House wherein a number of programs will be witness to the change in tax structure and implementation of GST across the country between the night of June 30 and July 1. The government expects GST to revolutionize India's taxing system and is being marketed as one nation one tax.

Overseas, European stocks opened higher, recovering from recent losses triggered by comments by the European Central Bank and as markets eyed a preparatory meeting between Group of 20 heads of state.

Asian stocks edged higher, taking cues from a stronger finish in US markets. US equities registered strong gains yesterday, 28 June 2017 as bank stocks led the charge. The S&P 500 index notched its biggest one-day gain since late April 2017.

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