Broad market depicts strength

Key benchmark indices marched ahead and hit fresh intraday high in mid-morning trade. At 11:18 IST, the barometer index, the S&P BSE Sensex was up 162.99 points or 0.52% at 31,408.55. The Nifty 50 index was up 42.55 points or 0.44% at 9,680.15. The Sensex and the Nifty, both, hit fresh highest level in two weeks.

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.

The Sensex gained 182.47 points or 0.58% at the day's high of 31,428.03, in mid-morning trade, its highest level since 22 June 2017. The index rose 19.30 points or 0.06% at the day's low of 31,264.86, in early trade. The Nifty gained 45.25 points or 0.46% at the day's high of 9,682.85, in mid-morning trade, its highest level since 22 June 2017. The index rose 2.35 points or 0.02% at the day's low of 9,639.95, in early trade.

 

The S&P BSE Mid-Cap index rose 0.54%. The S&P BSE Small-Cap index gained 0.79%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,545 shares rose and 713 shares fell. A total of 113 shares were unchanged.

Capital goods stocks rose for the second day in a row. Bharat Heavy Electricals (Bhel) (up 2.2%), Havells India (up 1.46%), ABB India (up 1.28%), Bharat Electronics (up 1.18%), L&T (up 0.19%), Thermax (up 0.06%), and Siemens (up 0.33%) gained.

Most cement stocks also gained. ACC (up 0.39%), Shree Cement (up 0.02%), Ambuja Cements (up 0.52%), and UltraTech Cement (up 0.28%) gained.

Grasim Industries declined 0.63%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

NBCC (India) rose 0.32% after the company said it secured total business worth approximately Rs 630 crore in June 2017. 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.

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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