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Market hovers near day's high

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Capital Market
Last Updated : Jul 09 2018 | 2:04 PM IST

Key indices were trading near day's high in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was up 262.48 points or 0.74% at 35,920.34. The Nifty 50 index was up 77.65 points or 0.72% at 10,850.30. Upbeat global stocks boosted sentiment on the domestic bourses.

Trading for the week began on a firm note as key benchmark indices saw gap-up opening on positive Asian stocks. Stocks trimmed gains in morning trade after an initial upmove. Key benchmark indices were trading firm in afternoon trade.

The S&P BSE Mid-Cap index was up 1.17%. The S&P BSE Small-Cap index was up 1.30%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1639 shares rose and 791 shares fell. A total of 109 shares were unchanged.

Yes Bank (up 3.12%), Axis Bank (up 2.48%), Vedanta (up 2.21%), Sun Pharmaceutical Industries (up 2.10%), Asian Paints (up 2.06%) and State Bank of India (up 1.65%), were the top Sensex gainers.

TCS (down 1.19%), HDFC (down 0.4%) and IndusInd Bank (down 0.31%), were the major Sensex losers.

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Tata Motors rose 1.73%. Tata Motors's unit Jaguar Land Rover reported total retail sales of 52,049 vehicles in June 2018, up 0.9% year on year, primarily reflecting the introduction of the Range Rover Velar and the Jaguar E-PACE. Retail sales for June were up year-on-year in our Overseas markets (16.7%), in North America (7.4%) and in the UK (0.9%) China was down 9.5% as the reduction in import duties on passenger vehicles, starting 1 July, continued to result in deferred purchases as well as increased incentives in advance of the 1 July effective date. Europe was also down slightly(-3.8%).

Jaguar retail sales were up 6.4% in June to 16,328 thanks to the introduction of the E-PACE, partially offset by lower sales of F-PACE and other models. Land Rover retailed 35,721 vehicles in June, down 1.5% year on year as the introduction of Velar and increased sales of the refreshed Range Rover Sport were offset by lower sales of Evoque, Discovery Sport and other models. The announcement was made during market hours today, 9 July 2018.

Overseas, shares in Europe and Asia gained as investors set aside concerns about escalating trade tensions to prepare for the latest earnings season after signs of continued economic strength.

In Europe, investors reacted to news that the UK's chief Brexit negotiator has resigned from his post after disagreements with the rest of the UK government and in particular the prime minister. Theresa May reached a compromise Friday to go ahead with a plan that would mean the country had the closest possible ties with the EU. May is due to address the House of Commons on Monday.

Meanwhile, in Germany, data showed exports rising in May, widening the trade surplus, despite ongoing trade frictions with the United States.

US stocks closed solidly higher on Friday, 6 July 2018, after a read on the labor market came in stronger than expected, supporting the thesis that economic fundamentals remain healthy despite trade-war anxieties.

On the economic data front, the US created 213,000 new jobs in June, while the readings for May and April were also revised higher. Separately, the unemployment rate rose to 4% from 3.8%. Meanwhile, the nation's trade deficit shrank 6.6% in May to a 19-month low.

On the political front, the Trump administration officially imposed tariffs on $34 billion of Chinese imports at midnight Eastern Time, and Beijing implemented tariffs on the same value in US goods, as promised.

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First Published: Jul 09 2018 | 1:18 PM IST

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