Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade on steady buying in TCS, Infosys and HDFC. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 384.01 points or 1.22% at 31,744.64. At 14:02 IST, the Nifty 50 index was up 96.10 points or 0.99% at 9,761.90. Trading was halted temporarily in both cash and derivatives segment of NSE due to technical reasons. Buoyant global stocks lifted sentiment on the domestic bourses.
Both the Sensex and the Nifty scaled record high in mid-afternoon trade. The Sensex gained 407.76 points or 1.3% at the day's high of 31,768.39 in mid-afternoon trade, a record high for the barometer index. The index rose 110.78 points or 0.35% at the day's low of 31,471.41 at the onset of the session. The Nifty gained 106.40 points or 1.1% at the day's high of 9772.20 in mid-afternoon trade, a record high for the index. The index fell 19.35 points or 0.2% at the day's low of 9,646.45 in intraday trade.
Meanwhile, National Stock Exchange (NSE) resumed trading at 12:30 IST in both cash and derivatives segment after being halted temporarily due to technical reasons. NSE said that cash and futures & options (F&O) markets are functioning normally. However, a display issue has been noticed in cash segment which is being addressed, NSE said in its latest update.
Domestic stocks kick-started trading for the week on a upbeat note on positive Asian stocks. Indices kept on gaining ground as trading for the day progressed.
The S&P BSE Mid-Cap index was up 0.64%. The S&P BSE Small-Cap index was up 0.52%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,547 shares rose and 992 shares fell. A total of 139 shares were unchanged.
Auto stocks rose. Tata Motors (up 2.38%), Maruti Suzuki India (up 0.23%) and Ashok Leyland (up 0.62%) gained. Escorts (up 0.54%), Bajaj Auto (up 0.59%), Hero MotoCorp (up 1.38%) and TVS Motor Company (up 0.13%) rose. Mahindra & Mahindra (M&M) (down 0.13%) and Eicher Motors (down 0.02%) fell.
Lupin gained 3.25% after the company said it has received approval from the US health regulator for generic Ancobon Capsules. The announcement was made during market hours today, 10 July 2017. Lupin received final approval for its Flucytosine Capsules USP, 250 mg and 500 mg from the United States Food and Drug Administration (FDA) to market a generic version of Valeant Pharmaceuticals International Inc's Ancobon Capsules, 250 mg and 500 mg.
Flucytosine Capsules USP, 250 mg and 500 mg are indicated for the treatment of serious infections caused by susceptible strains of Candida and/or Cryptococcus. Ancobon Capsules had US sales of $46.6 million (IMS MAT March 2017).
Shares of IDFC and Shriram Group companies were trading lower after Shriram group and IDFC unveiled their intent to merge the two entities. IDFC (down 5.26%), Shriram Transport Finance Corporation (down 3.08%) and Shriram City Union Finance (down 5.53%) edged lower. IDFC Bank rose 0.77%.
The boards of IDFC Group and Shriram Group on 8 July 2017 approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination of certain businesses and subsidiaries / affiliates/associate companies of the Shriram Group engaged in the credit and non-credit financial services sector with the IDFC Group. The agreement primarily provides for a mutually agreed exclusivity period for due diligence and discussions between the relevant parties in relation to the potential combination.
The proposed potential combination would be subject to due diligence, definitive documentation and applicable board, shareholder, statutory/ regulatory and other third party approvals, as may be applicable.
Fortis Healthcare was up 3.03% after the Reserve Bank of India on Friday, 7 July 2017, approved hiking foreign investment ceiling in the company upto 74% of the paid-up equity capital.
Overseas, European stocks and most Asian stocks were trading higher, with sentiment helped by Wall Street's strong performance on Friday and gains in Asia today, after US jobs report beat estimates and Chinese inflation data came in line with forecasts.
Consumer prices in China rose an annual 1.5% in June, the National Bureau of Statistics said. That was unchanged from the May reading. The bureau also said that producer prices were up 5.5% on year, an unchanged pace and in line with expectations.
US stocks finished higher on Friday, 7 July 2017 as tech stocks rebounded from a slump and the jobs report showed a higher-than-expected gain for June. The Fed, in its semiannual monetary policy report, forecast a gradual hike in interest rates and a winddown of the balance sheet as the economy continues its steady pace of expansion. Meanwhile, the Group of 20 meeting of world leaders made little impact on markets, as there was less discord than expected.
In economic data, an employment report showed the US added 222,000 jobs in June, representing the second-largest job haul of the year and underscoring that the labor market remains healthy. The Labor Department said unemployment ticked up to 4.4% from 4.3%.
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