Positive market breadth

Key benchmark indices continued to trade with small losses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 22.80 points or 0.07% at 31,648.49. The Nifty 50 index was down 7.50 points or 0.08% at 9,907.40. Indices took a breather after prior four-day gains.

Domestic stocks nudged higher in early trade, extending their prior four-day winning trend on positive global stocks. Volatility struck bourses in morning trade as stocks trimmed gains after extending initial gains. Stocks slipped into the red in mid-morning trade and traded with small losses later during the session.

The S&P BSE Mid-Cap index was up 0.47%. The S&P BSE Small-Cap index was up 0.74%. Both these indices outperformed the Sensex.

 

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,417 shares rose and 1,050 shares fell. A total of 108 shares were unchanged.

Metal & mining stocks gained as copper prices in global market rose. JSW Steel (up 0.87%), Hindustan Copper (up 5.4%), Vedanta (up 0.08%), Hindustan Zinc (up 0.55%), Jindal Steel & Power (up 1.79%), Tata Steel (up 0.49%), Steel Authority of India (Sail) (up 0.37%), and National Aluminum Company (up 0.95%) gained. Bhushan Steel (down 1.65%) and Hindalco Industries (down 0.54%) declined.

NMDC lost 0.75% after the company reduced prices of iron ore in October 2017. The announcement was made after market hours yesterday, 4 October 2017. NMDC said it reduced prices of lump ore by 4.17%, or Rs 100 per tonne to Rs 2,300 per tonne in October 2017. It has also cut the prices of iron ore fines by 4.63%, or Rs 100 per tonne to Rs 2,060 per tonne in October 2017.

High Grade Copper for December 2017 delivery was currently up 0.69% at $2.9795 per pound on the COMEX.

Most auto stocks declined after last four-day gains. Ashok Leyland (down 0.2%), Tata Motors (down 0.44%), Eicher Motors (down 0.18%), Hero MotoCorp (down 0.66%), Bajaj Auto (down 0.78%) and TVS Motor Company (down 0.15%) declined.

Maruti Suzuki India gained 0.01% after the company said that production rose 3.28% to 1.51 lakh units in September 2017 over September 2016. The announcement was made during market hours today, 5 October 2017.

Mahindra & Mahindra rose 1.08% on reports that a foreign brokerage has upgraded its rating on the stock to outperform and raised the target to Rs 1,610. The brokerage reportedly observed that volume growth for Mahindra & Mahindra (M&M) is on an uptrend, while the tractor business is seeing strong demand. Moreover, the SUV business is a drag, but volumes are seeing a recovery on low base, it added.

On the macro front, the seasonally adjusted Nikkei India Services PMI Business Activity Index pointed to a return to growth of output. The headline figure rose from 47.5 in August to 50.7 in September, a reading that was indicative of a slight pace of expansion. The Indian service sector recovered from the GST-related contractions registered in the previous two months, as signalled by renewed increases in new business and output. The data was released during market hours today, 5 October 2017.

Overseas, most European stocks edged higher. Asian stocks gained in holiday-thinned trade. Stock markets in Hong Kong, China, and South Korea were closed for holidays.

US stocks posted modest gains yesterday, 4 October 2017 extending their recent streak of advances that's taken all major benchmarks to record levels. The Dow Jones Industrial Average eked out a small gain of 19.97 points, or 0.1%, to 22,661.57. The Nasdaq Composite Index meanwhile, advanced 2.91 points, or less than 0.1%, to 6,534.63, as gains were limited by a slump in technology shares. The S&P 500 rose 3.16 points, or 0.1%, to 2,537.74.

In US economic news, Markit's September figure for its services purchasing managers index dipped to 55.3 in September from 56 in August. The Institute for Supply Management's index of non-manufacturing activity rose to 59.8 in September, compared with 55.3 in the prior period and marked its highest level since mid-2005. A reading of 50 or greater indicates expansion.

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