Key benchmark indices settled with small gains after a lacklustre session of trade as most global stocks rose after the surprise UK general election result left the country facing a hung parliament, where no single party has a majority. The barometer index, the S&P BSE Sensex rose 59.28 points or 0.19% at 31,272.64, as per the provisional closing data. The Nifty 50 index gained 19.40 points or 0.2% at 9,666.65, as per the provisional closing data.
After opening slightly lower, key indices hovered in the negative terrain with small losses for the most part of the session. Indices recovered and traded in positive terrain with small gains in late trade.
The S&P BSE Mid-Cap index provisionally rose 0.28%. The S&P BSE Small-Cap index provisionally gained 0.5%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,380 shares rose and 1,289 shares fell. A total of 188 shares were unchanged.
The total turnover on BSE amounted to Rs 3341.96 crore, lower than turnover of Rs 7654.56 crore registered during the previous trading session.
Realty stocks gained on renewed buying. DLF (up 5.14%), Sobha (up 0.18%), Unitech (up 1.37%), Godrej Properties (up 0.2%), Oberoi Realty (up 1.98%), D B Realty (up 0.23%), Indiabulls Real Estate (up 4.91%), and Omaxe (up 0.05%) gained.
Pidilite Industries rose 0.98% after the company said that the its wholly owned subsidiary Pidilite USA Inc. (PUSA), has entered into an agreement with Niteo Products LLC, USA for sale of business of the Cyclo Division of PUSA. Cyclo Division has been engaged in the business of automobile grooming, performance and maintenance products and other such products.
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Some of the trademarks used by the Cyclo Division were owned by Pidilite International Pte., Singapore, a wholly owned subsidiary of the company and the same will also stand assigned to Niteo Products LLC, USA. The announcement was made after market hours yesterday, 8 June 2017.
Mahanagar Telephone Nigam jumped 5.7% after the company clarified that it is considering assets monetization to reduce debt. The clarification was issued during trading hours today, 9 June 2017. MTNL clarified on media report regarding raising of Rs 4000 crore and a potential sale of Delhi, Mumbai properties.
MTNL said that in order to revive the company and come out of the debt, the management of MTNL is considering the proposal for assets monetisation through lease/sale of real estate/buildings, lease/sale of towers, ducts, etc. The proceeds of assets monetization can be utilised for debt reduction. For this, the company has requested the Department of Telecommunications (DoT) to grant necessary approval. As and when any such approval comes from DoT, the company will inform the stock exchanges accordingly.
Aarvee Denims & Exports fell 2.56% after the company announced that one of manufacturing unit situated at Narol in Ahmedabad has been closed with effect from 6 June 2017 due to closure notice issued by Gujarat Pollution Control Board (GPCB) for safety and health concerns. The announcement was made after trading hours yesterday, 8 June 2017.
The company said it is taking all the necessary steps to re-start the manufacturing unit at earliest by taking remedial measures as directed by GPCB.
Overseas, European stocks edged higher after the surprise UK general election result left the country facing a hung parliament, where no single party has a majority. British Prime Minister Theresa May's Conservative party has fallen short of an outright majority in the UK's general election. May had unexpectedly called the snap election seven weeks ago, confident of sharply increasing the slim majority she had inherited from predecessor David Cameron before launching into the Brexit talks.
The lack of a clear majority government raises uncertainty regarding the future of the country, mainly as it was on track to start Brexit negotiations in a few days' time.
Among other events, the European Central Bank (ECB) yesterday, 8 June 2017, as expected, left interest rates unchanged but said it continued to expect interest rates to remain at present levels for an extended period of time, and well past the horizon of its asset-buying program, which is set to run at least through December. In previous statements, the ECB had said it expected rates to remain at present or lower levels for an extended period of time.
Asian stocks were mixed after British Prime Minister Theresa May's Conservative party has fallen short of an outright majority in the UK's general election.
US stocks notched meager gains yesterday, 8 June 2017 but the Nasdaq Composite index closed at a record after former Federal Bureau of Investigation (FBI) Director James Comey's appearance in front of the US Senate Intelligence Committee concluded without any significant revelations.
Comey accused President Donald Trump of firing him to try to undermine the agency's investigation of possible collusion by Trump's campaign with Russia's alleged efforts to influence the 2016 presidential election. During more than two hours of testimony, Comey told the Senate Intelligence Committee he believed Trump had directed him in February to drop an FBI probe into the Republican president's former national security adviser, Michael Flynn, as part of the broader Russia investigation.
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