Key benchmark indices remained firm and traded with modest gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 153.12 points or 0.49% at 31,398.88. The Nifty 50 index was up 39.60 points or 0.41% at 9,677.20.
Good monsoon rains so far during the current monsoon season perked up sentiment. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Key indices opened with small gains and accumulated further gains till mid-morning trade. The Sensex and the Nifty, both, hit highest level in two weeks in mid-morning trade.
The S&P BSE Mid-Cap index rose 0.53%. The S&P BSE Small-Cap index gained 0.8%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,574 shares rose and 840 shares fell. A total of 113 shares were unchanged.
Auto stocks gained for the second straight day on hopes good monsoon so far may perk up demand from rural sector. Mahindra & Mahindra (M&M) (up 0.07%), Ashok Leyland (up 1.03%), Maruti Suzuki India (up 0.92%), Eicher Motors (up 0.01%), Hero MotoCorp (up 0.97%), Tata Motors (up 1.04%) and TVS Motor Company (up 0.78%) gained. Bajaj Auto fell 1.44%.
FMCG stocks were mixed. Nestle India (up 0.86%), Marico (up 0.11%), Britannia Industries (up 0.31%), Jyothy Laboratories (up 0.1%), Dabur India (up 1.43%), and Bajaj Corp (up 0.71%) gained. Tata Global Beverages (down 1.25%), Procter & Gamble Hygiene and Health Care (down 0.5%), Godrej Consumer Products (down 0.48%), Hindustan Unilever (HUL) (down 0.48%), Colgate Palmolive India (down 0.22%), and GlaxoSmithkline Consumer Healthcare (down 0.16%) declined.
Shares of index heavyweight ITC gained 1.95%.
Jubilant Life Sciences rose 1.32% after the company announced that Jubilant Pharma, a material wholly owned subsidiary of the company, through one of its wholly-owned subsidiaries, has received abbreviated new drug application (ANDA) final approval for Bupropion Hydrochloride extended-release tablets USP (XL), 150 mg and 300 mg, the generic version of Wellbutrin XL of Valeant.
The drug is used for the treatment of major depressive disorder and prevention of seasonal affective disorder. The announcement was made during trading hours today, 6 July 2017.
IRB Infrastructure Developers rose 2.65% after the company said that its special purpose vehicle, Udaipur Tollway, has successfully achieved financial closure for its Udaipur-Gujarat Border six laning BOT (build-operate-transfer) project.
The special purpose vehicle, in terms of the concession agreement executed with the National Highways Authority of India (NHAI), has tied up with the consortium of lenders for project finance to the tune of Rs 1461 crore. The announcement was made after market hours yesterday, 5 July 2017.
OM Metals Infraprojects surged 12.62% after the company said it has on 4 July 2017 sold its cineplex division, Om Cineplex Commercial Complex, for Rs 18 crore to Princess Infra and Development. The announcement was made after market hours yesterday, 5 July 2017.
Meanwhile, India Meteorological Department said that area weighted rainfall for the country as a whole for the current monsoon season till 5 July 2017 was 217.3 mm compared to normal of 206.7 mm with a departure of excess 5%.
Overseas, most Asian stocks declined after underwhelming overnight moves in the US, as investors adopted a collective wait-and-see attitude. Market participants are especially concerned about the repercussions of North Korea's missile launch earlier this week, in addition to a Group of 20 meeting in Germany and Friday's US jobs report.
German manufacturing orders rebounded in May, albeit by less than expected, depressed by a relatively low share of bulk orders. Germany's economics ministry said that total orders for the important sector increased by 1% compared with April, adjusted for seasonal swings and calendar effects.
In the US, the Nasdaq Composite Index and S&P 500 index finished higher while the Dow Jones Industrials Average closed fractionally lower yesterday, 5 July 2017, as Federal Reserve policy meeting minutes indicated a reduction in the central bank's economy-boosting balance sheet could begin soon, and technology stocks rallied amid a disappointing manufacturing report and a tumble in crude futures.
In minutes released from the Fed's June meeting, several members showed they're in favor of starting a reduction of the central bank's $4.5 trillion balance sheet. The minutes also showed that officials are divided on unemployment figures.
New orders for US-made goods fell more than expected in May. Factory goods orders dropped 0.8%, the Commerce Department said after a revised 0.3% decline in April. It was the second straight monthly decrease in orders.
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