Key indices edged higher in early trade tracking mostly higher Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 59.28 points or 0.2% at 29,985.43. The Nifty 50 index rose 20.35 points or 0.22% at 9,334.40. The Sensex was trading below the psychological 30,000 mark after moving past that mark in early trade. Metal and realty stocks gained.
The BSE Mid-Cap index rose 0.33%. The BSE Small-Cap index gained 0.59%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,014 shares rose and 357 shares fell. A total of 53 shares were unchanged.
Overseas, Asian stocks rose after US stocks hit record highs overnight. In US, the S&P 500, and Nasdaq Composite notched records yesterday, 8 May 2017, but major US equity indexes finished little-changed as materials shares capped a climb in the energy sector. Trading activity was listless after Emmanuel Macron's closely watched, but expected, presidential election victory in France.
In the latest commentary from Federal Reserve officials, Cleveland Federal Reserve President Loretta Mester said the Fed must be very vigilant against falling behind on needed interest-rate hikes, adding that we could risk a recession if the central bank delayed too long on normalizing rates. Separately, St. Louis Fed President James Bullard said the Fed's benchmark federal-funds rate is close to where a famous mathematical rule recommends it should be.
A measure of fear on Wall Street ended at its lowest level since 1993 yesterday, 8 May 2017, according to FactSet data. The CBOE Volatility Index VIX, -7.57% or VIX, closed at 9.77, off 7.6%, and marking its lowest level since 27 December1993.
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Meanwhile, the International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5% from its previous October forecast of 5.4%, said loose monetary and fiscal policies across most of the region would underpin domestic demand.
Back home, Bharti Airtel declined 0.71% ahead of its Q4 results today, 9 May 2017.
Bharti Infratel dropped 0.8% after consolidated net profit fell 16.95% to Rs 596.60 crore on 13.20% increase in net sales to Rs 1605.30 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017.
Asian Paints (up 0.68%), Hero MotoCorp (up 0.6%) and HDFC (up 0.51%) were the major gainers from the Sensex pack.
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