Key benchmark indices managed to provisionally settle with small gains after hovering in small range near the flat line throughout the session. The barometer index, the S&P BSE Sensex rose 35.77 points or 0.11% at 31,245.56, as per the provisional closing data. The Nifty 50 index gained 24.30 points or 0.25% at 9,637.60, as per the provisional closing data. A private survey showing India's service sector expanding at its fastest pace in eight months in June and gains in most global stocks provided support to local indices.
Market movement remained lacklustre amid geopolitical concerns after North Korea launched a long-range ballistic missile.
The S&P BSE Mid-Cap index provisionally rose 0.97%. The S&P BSE Small-Cap index provisionally gained 1.12%. Both these indices outperformed the Sensex.
The breadth, indicating strength of the market was strong. On BSE, 1,695 shares rose and 978 shares fell. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 3126.02 crore, lower than turnover of Rs 3840.10 crore registered during the previous trading session.
The Sensex gained 74.85 points or 0.23% at the day's high of 31,284.64. The index fell 32.01 points or 0.1% at the day's low of 31,177.78. The Nifty gained 30.35 points or 0.31% at the day's high of 9,643.65. The index fell 5.95 points or 0.06% at the day's low of 9,607.35.
Metal and mining stocks gained for the third straight day. JSW Steel (up 2.24%), Bhushan Steel (up 3.71%), Hindustan Copper (up 1.15%), Vedanta (up 2.29%), Hindalco Industries (up 0.28%), Hindustan Zinc (up 1.47%), Jindal Steel & Power (up 4.16%), Tata Steel (up 0.81%), and Steel Authority of India (Sail) (up 2.22%) gained. National Aluminum Company dropped 0.07%.
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NMDC declined 0.27% after the company reduced prices of lump iron ore by 8.24% to 2,225 per wet metric tonne (WMT) from prices of last month. Fine iron ore price shed 9.15% to Rs 1,985 per WMT. The rates will be effective from 5 July 2017. The announcement was made after market hours yesterday, 4 July 2017.
Timken India jumped 15.38% and ABC Bearings surged 20% after the board of Timken India on 4 July 2017, approved the amalgamation of ABC Bearings with the company. The announcement was made after market hours yesterday, 4 July 2017.
As per the proposed scheme, Timken India will issue 5 equity shares for every 8 equity shares held in ABC Bearings. The transaction is expected to close in the quarter ended 31 March 2018, subject to the receipt of all approvals.
The scheme is subject to the approval of the shareholders and creditors of ABC Bearings, approval of the regulatory authorities and the sanction of the National Company Law Tribunal.
The amalgamation will help both the firms to achieve larger product portfolio, access new domestic and export markets, increase market share, economies of scale, efficiency, and other related economies. The scheme intends to merge the operations of ABC Bearings with that of Timken India to fulfill this objective.
On macroeconomic data front, activity in India's dominant service sector expanded at its fastest pace in eight months in June as new business orders surged, a private survey showed. The Nikkei/IHS Markit Services Purchasing Managers' Index climbed to 53.1 in June from the previous month's 52.2. June was the fifth consecutive month the index has been above the 50 mark that separates growth from contraction.
Overseas, European stocks struggled for direction as losses for pharmaceutical companies and car makers dragged on the region's index, even as fresh data painted an upbeat picture of the eurozone economy.
On macroeconomic data front, Euro zone retail sales increased by more than expected in May, European statistics office Eurostat said. Compared to the previous month, May sales in the 19 countries sharing the euro currency increased by 0.4%, making for a 2.6% annual increase.
Euro zone businesses lost some momentum in June but chalked up their best performance last quarter in over six years, according to surveys. IHS Markit's final composite Purchasing Managers' Index for the euro zone was 56.3 in June, down from May's 56.8 but comfortably beating a flash estimate of 55.7.
Most Asian equities edged higher amid geopolitical concerns after North Korea launched a long-range ballistic missile. North Korea reportedly claimed today, 5 July 2017 the missile it launched yesterday, 4 July 2017 was an intercontinental ballistic missile capable of carrying a heavy nuclear warhead. The missile launched on Tuesday, 4 July 2017 landed in Japan's exclusive economic zone (EEZ).
In Asia, the Caixin services Purchasing Managers' Index (PMI) showed that growth in China's services sector slowed in June. The Caixin services PMI fell to 51.6 from the 52.8 figure seen in May. The June composite PMI, which takes into account both the services and manufacturing sectors, fell to 51.1 compared with the 51.5 number seen last month.
Activity in Japan's services sector accelerated from the previous month to expand at its fastest pace in almost two years, a private survey showed. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in June from 53 in May as new business, outstanding business and hiring expanded.
US markets were closed yesterday, 4 July 2017 for Independence Day.
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