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Market rises as Xi Jinping soothes fears of a China-US trade war

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Capital Market
Last Updated : Apr 10 2018 | 3:50 PM IST

Rising for a fourth consecutive session, the key benchmark indices firmed up on decent buying in metal and bank shares as investors appeared confident in view of firm global cues. The barometer index, the S&P BSE Sensex, rose 91.71 points or 0.27% to 33,880.25, as per the provisional closing data. The Nifty 50 index rose 22.90 points or 0.22% to 10,402.25, as per the provisional closing data. Shares across the globe edged higher after a speech by Chinese President Xi Jinping calmed investor jitters over an escalating US-China trade row.

Overseas, European shares rose on Tuesday, led higher by gains in Bayer after a report that the US approved its takeover of Monsanto, while a solid update from LVMH lifted luxury sector stocks.

Asian markets advanced as investors digested comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy. Those measures, which Xi brought up in his speech at the Boao Forum for Asia, included lowering import tariffs for autos and other products, as well as enforcing legal intellectual property of foreign firms.

US stock futures also edged up amid improved investor confidence. Dow Jones industrial average futures were higher by 282 points in Asian trade.

US stock market finished well off session highs on Monday following a report that the Federal Bureau of Investigation (FBI) officers had raided the office of Michael Cohen, Trump's longtime personal lawyer. US stocks had rallied earlier in the session as comments from Trump and administration officials alleviated fears about rising trade hostilities between the US and China.

Back home, the market opened higher and hit fresh intraday high in morning trade. Indices pared gains in mid-morning trade as profit selling emerged at higher levels. The market turned range bound since early afternoon trade and ended with decent gains.

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The Sensex rose 161.44 points, or 0.48% at the day's high of 33,949.98 in morning trade, its highest intraday level since 13 March 2018. The index rose 24.76 points, or 0.07% at the day's low of 33,813.30 in mid-morning trade. The Nifty rose 45.50 points, or 0.44% at the day's high of 10,424.85 in morning trade, its highest intraday level since 13 March 2018. The index rose 2.15 points, or 0.02% at the day's low of 10,381.50 in mid-morning trade.

Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.18%. The BSE Small-Cap index provisionally fell 0.02%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,336 shares fell and 1,269 shares rose. A total of 136 shares were unchanged.

Metal shares were in demand. Hindalco Industries (up 4.02%), NMDC (up 3.44%), National Aluminium Company (up 2.63%), Tata Steel (up 2.53%), Hindustan Copper (up 2.04%), Steel Authority of India (up 1.99%), Vedanta (up 0.82%), Jindal Steel & Power (up 0.76%), JSW Steel (up 0.57%) and Hindustan Zinc (up 0.53%), edged higher.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for May 2018 delivery was currently up 0.71% at $3.099 per pound on the COMEX.

Axis Bank rose 5.70% at Rs 547.40. The bank's managing director and CEO Shikha Sharma wanted her new term to be reduced to seven months from three-year tenure that has been approved by the bank's board. The Axis Bank board has accepted her request for a shorter seven-month term (from 1 June to 31 December 2018), subject to the approval of the Reserve Bank of India (RBI). The announcement was made after market hours yesterday, 9 April 2018.

ICICI Bank rose 3.01% to Rs 288.90. HDFC Bank fell 0.96% to Rs 1919.80.

Maruti Suzuki India fell 0.44%. The company announced that Suzuki Motor Corporation (SMC) has started export of the all-new Swift produced at Suzuki Motor Gujarat (SMG), SMC's 100% subsidiary to produce automobiles in India. Production of the all-new Swift started at SMG in January 2018. It was shipped from Mumbai Port to South Africa, with Maruti Suzuki as its merchant exporter. The announcement was made during trading hours today, 10 April 2018.

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First Published: Apr 10 2018 | 3:38 PM IST

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