Key indices were trading with small losses after slipping into the red from positive terrain in afternoon trade weighed by lower opening for European stocks. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 28.98 points or 0.08% at 31,636.09. The Nifty 50 index was down 12.30 points or 0.12% at 9,917.60.
Stocks drifted higher in early trade led by L&T and HDFC Bank. Key benchmark indices traded mostly with modest gains till early afternoon trade amid intermittent bouts of volatility which saw indices dip slightly into the negative terrain.
The S&P BSE Mid-Cap index was down 0.6%. The S&P BSE Small-Cap index was down 0.25%. The decline in both the indices was higher than the Sensex's fall in percentage terms.
The market breadth, indicating the overall health of the market, turned negative from positive in afternoon trade. On the BSE, 1,416 shares fell and 1,040 shares rose. A total of 122 shares were unchanged.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 2.2%), Hero MotoCorp (down 0.12%), Bajaj Auto (down 1.01%) and Tata Motors (down 0.65%) declined. Ashok Leyland (up 3.62%), Maruti Suzuki India (up 0.71%), and TVS Motor Company (up 0.36%) gained.
Eicher Motors rose 1.08% to Rs 33,142, extending Thursday's gains on buzz the company is preparing an offer to acquire superbike major Ducati for $1.8 to 2 billion. The stock had hit high of Rs 33,483.95 in intraday trade, which is also a record high. Reports suggested that Eicher is close to making a binding offer to acquire Italian superbikes Ducati for around $1.8 to 2 billion. The deal is being valued at 14-15 times Ducati's earnings before interest, taxes, depreciation and amortisation (EBITDA) of about 100 million euro, reports added.
IT stocks gained on renewed buying. Tech Mahindra (up 1.14%), HCL Technologies (up 0.85%), Oracle Financial Services Software (up 0.06%), and Wipro (up 0.28%) edged higher. Infosys declined 0.66%.
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TCS rose 0.37%. TCS and GE's Power Services business (PS), together completed a complex integration of field service technician information into a Services Data Lake. The platform improves financial process efficiency for power generation asset service operations by integrating disparate data of service work orders and case management from multiple product and service lines including parts, services and repairs. The announcement was made after market hours yesterday, 7 September 2017.
Meanwhile, India Meteorological Department (IMD) said that cumulative area weighted rainfall for the country as a whole till 5 September 2017 was 5% below normal. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture. Around 70% of the country's farmlands are rain-fed.
Overseas, European stocks edged lower in early trade as investors eye the impact of Hurricanes Harvey, Irma and Jose. Imports to Germany surged in July, official data showed. Total goods imports rose 2.2% from June, while exports increased 0.2%, the German Federal Statistical Office said. French industrial production rose less than expected in July statistics showed. Industrial output in the eurozone's second-largest economy rose 0.5% in July from June, statistics agency Insee said.
The European Central Bank (ECB) held interest rates steady at 0% yesterday, 7 September 2017. ECB President Mario Draghi said the central bank would be prepared to make a decision on its quantitative easing program at its October meeting. For now, the central bank's net asset purchases of 60 billion euro a month would continue to the end of the year or beyond, if necessary, Draghi said.
Asian stocks were mixed as investors braced for damage that Hurricane Irma may inflict on Florida. China today, 8 September 2017, reported August exports were up 5.5% from a year ago in dollar terms, while imports were up 13.3% in dollar terms. China also reported August exports were up 6.9% in yuan terms while imports were up 14.4% in yuan terms from a year ago, Chinese customs data showed.
Japan's economy grew at a slower pace than initially estimated in the April-June quarter, as weaker business investment pushed down the pace of expansion. The nation's gross domestic product grew at an annualized pace of 2.5% from the previous three months, according to government data.
US stock indexes ended slightly lower yesterday, 7 September 2017 as investors sold financials, consumer-discretionary and telecommunication shares. On the data front, the number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas, but the underlying trend remained consistent with a firming jobs market.
Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015, the Labor Department said.
Meanwhile, the threat from North Korea lingers. US President Donald Trump said it's not inevitable that the US will wind up in a war with North Korea over its continued development of nuclear weapons, though military action remains an option. Pyongyang may test a missile this weekend to coincide with its founding day on 9 September 2017.
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