After trimming intraday gains in mid-morning trade, key benchmark indices hovered with small gains in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex advanced 100.25 points or 0.3% at 33,847.03. The Nifty 50 index gained 41.35 points or 0.4% at 10,400.20. The Sensex was hovering below the 34,000 level. It had crossed that level in early trade.
Key indices opened the session on a stronger footing on firm global cues. Later, indices trimmed gains. Global stocks gained as worries about a potential trade war waned in the aftermath of US President Donald Trump's tariff announcement on steel and aluminum.
Among secondary indices, the S&P BSE Mid-Cap index advanced 0.74%, outperforming the Sensex. The S&P BSE Small-Cap index rose 0.17%, underperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,301 shares advanced and 1,114 shares declined. A total of 150 shares were unchanged.
Telecom stocks were mixed. MTNL (down 0.69%) and Idea Cellular (down 0.24%) declined. Reliance Communications (up 1.26%) and Bharti Airtel (up 0.66%) gained.
Metal and mining stocks gained on speculation that US President Donald Trump will soften his proposed trade tariffs on steel and aluminum. Tata Steel (up 1.98%), Vedanta (up 1.82%), Jindal Steel & Power (up 1.57%), NMDC (up 1.5%), JSW Steel (up 1.17%), SAIL (up 1.02%), Hindustan Zinc (up 0.93%), Hindustan Copper (up 0.07%) and Hindalco Industries (up 0.04%) edged higher. Nalco (down 0.23%) edged lower.
Metal and mining shares had declined yesterday, 5 March 2018 on uncertainty over the effects of US President Donald Trump's announcement of a plan to impose tariffs on steel and aluminum. Trump, on Friday, 2 March 2018, said that he would impose a 25% import tariff on steel and 10% import tariff on aluminum to protect US producers. The move could reportedly trigger a trade war with China and Europe. Trump said the import tariff hike would create jobs in the US and benefit its industries.
Axis Bank was up 0.42% at Rs 525.85. With regard to a media news captioned RBI fines Axis Bank Rs.30 million for flouting NPA norms", the bank issued a clarification. Axis Bank said that the Reserve Bank of India (RBI) vide its press release dated 5 March 2018 has imposed a monetary penalty of Rs 3 crore on the bank for non-compliance with the directions issued by it on Income Recognition and Asset Classification (IRAC) norms. The bank added that the said penalty will not have any material impact on it. The announcement was made during market hours today, 6 March 2018.
In a key development in the aftermath of a massive financial fraud at Punjab National Bank (PNB), the Reserve Bank of India (RBI) stated vide its press release dated 5 March 2018 that it will inject additional liquidity of Rs 1 lakh crore in banks through longer tenor instruments to enable flexibility towards meeting their fund needs. This measure is to address additional demand for liquidity and with a view to provide flexibility to the banking system in its liquidity management towards March-end, the central bank said. This will be in addition to normal liquidity adjustment facility operations.
Overseas, Asian stocks rallied, tracking gains in the US and Europe in the last session as concerns over a potential trade war faded.
US stocks rose yesterday, 5 March 2018, erasing earlier losses, as worries about a potential trade war waned. US President Donald Trump announced tariffs on steel and aluminum that sparked fears of a trade war.
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