A bout of volatility was seen in afternoon trade as the key benchmark indices regained strength soon after trimming intraday gains. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 152.04 points or 0.45% at 33,779.01. The Nifty 50 index was up 47.10 points or 0.46% at 10,378.70. Most realty stocks gained. Capital goods stocks saw mixed trend. Global stocks and US index futures rose on hopes that a full blown trade war between the United States and China could be averted.
After opening on a dull note, the market moved higher and hit fresh intraday high in morning trade. Indices turned range bound in mid-morning trade. Indices extended intraday gains and hit fresh intraday high in early afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.15%. The BSE Small-Cap index was up 0.36%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,603 shares rose and 981 shares fell. A total of 135 shares were unchanged.
Capital goods stocks saw mixed trend. Bharat Heavy Electricals (Bhel) (up 1.77%), BEML (up 1.94%), L&T (up 1.26%) and Punj Lloyd (up 0.82%) rose. Siemens (down 0.7%), Thermax (down 1.06%), Bharat Electronics (down 0.28%) and ABB India (down 0.03%) fell.
Most realty stocks gained. DLF (up 0.86%), Sunteck Realty (up 0.78%), Indiabulls Real Estate (up 0.18%), Housing Development and Infrastructure (up 0.48%), Unitech (up 0.3%), Sobha (up 0.44%) and Prestige Estates Projects (up 1.76%) rose. D B Realty (down 0.09%), Godrej Properties (down 1.46%) and Oberoi Realty (down 0.45%) fell.
Overseas, European shares rose in early deals as hopes that a full blown trade war between the United States and China could be averted spread across markets. Stocks in Asia were trading higher as investors looked past the trade worries that fueled Friday's declines on Wall Street. The stock moves came after President Donald Trump reportedly said in a tweet Sunday he expects China to lower trade barriers with the US acting reciprocally on taxes.
Also Read
A bounce in US stock futures also boosted sentiment across Asian markets. Trading in US index futures indicated that the Dow could jump 175 points at the opening bell today, 9 April 2018.
Meanwhile, some media reported that US forces had struck at sites in Syria, presumably in retaliation for an alleged chemical attack on civilians there.
China has tightened restrictions on exports to North Korea of items with potential dual use in weapons of mass destruction and conventional arms. The ban on exports of potential dual-use items, including software, machinery and chemicals, is in line with UN Security Council resolution number 2375. That resolution was passed in September.
US stocks closed sharply lower on Friday, 6 April 2018, led by a selloff in industrials and financials, as investors continued to fret over an escalating China-US trade fight.
The selling pressure followed Federal Reserve Chairman Jerome Powell's speech in which he backed a patient approach to raising interest rates. The Fed chairman said going slow on rate hikes has also reduced the risk of an unforeseen blow to the economy that might have pushed the economy into recession.
Investors also digested a weaker-than-expected jobs report that showed that wage growth remains tepid. The US economy added just 103,000 new jobs in March. The unemployment rate was unchanged at 4.1%.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content