A bout of volatility was witnessed in the mid-afternoon trade as key indices partially recovered after paring intraday gains. At 14:16 IST, the barometer index, the S&P BSE Sensex was up 106.42 points or 0.35% at 30,940.74. The Nifty 50 index rose 33.15 points or 0.35% at 9,524.40. The Sensex was trading below the psychological 31,000 level after slipping below that level in afternoon trade.
The market may remain volatile for the remainder of the trading session as traders rolled over positions in the futures & options (F&O) segment from the near month June 2017 series to July 2017 series. The near month June 2017 derivatives contract expires today, 29 June 2017.
The Sensex rose 36.26 points or 0.11% at the day's low of 30,870.58 in mid-afternoon trade. The index surged 263.60 points or 0.85% at the day's high of 31,097.92 in early afternoon trade, its highest level since 27 June 2017.
The Nifty rose 10.75 points or 0.11% at the day's low of 9,502 in mid-afternoon trade. The index surged 84.55 points or 0.89% at the day's high of 9,575.80 in early afternoon trade, its highest level since 27 June 2017.
Market opened on a positive note and traded with modest gains till early afternoon trade as investors' sentiment was positive ahead of nation-wide rollout of the ambitious indirect tax reform the Goods and Services Tax (GST) with effect from 1 July 2017. However, indices pared gains later only to make partial recovery in mid-afternoon trade.
Among other indices, the S&P BSE Mid-Cap index rose 0.56%. The S&P BSE Small-Cap index advanced 0.99%. Both these indices outperformed the Sensex.
Also Read
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,656 shares rose and 807 shares declined. A total of 150 shares were unchanged.
Capital goods stocks advanced. BEML (up 1.83%), Siemens (up 1.81%), L&T (up 0.4%), Bharat Electronics (up 1.6%), Bharat Heavy Electricals (up 0.7%) and ABB India (up 0.2%) gained. Havells India (down 1.89%) and Suzlon Energy (down 0.56%) edged lower.
Aviation stocks were mixed. SpiceJet (up 0.31%) and Jet Airways (India) (up 0.05%) edged higher. InterGlobe Aviation (down 2.51%) edged lower.
LT Foods gained 1.42% after the company commenced operations at its first rice processing plant in Europe at Rotterdam, Netherlands. LT Foods has made an investment of $15 million in the plant with initial capacity of 60,000 tonnes and scope for further expansion in the future. The company plans to make its most popular 'Daawat' brand a household name in Europe using raw material from India. The announcement was made after market hours yesterday, 28 June 2017.
On the macro front, the implementation of landmark tax reform Goods and Services Tax (GST) will be closely watched. On the night of 30 June 2017, there will be a special function in the Central Hall of Parliament House wherein a number of programs will be witness to the change in tax structure and implementation of GST across the country between the night of June 30 and July 1. The government expects GST to revolutionize India's taxing system and is being marketed as one nation one tax.
Overseas, European stocks edged higher as markets eyed a preparatory meeting between Group of 20 heads of state.
Asian stocks edged higher, taking cues from a stronger finish in US markets. US equities registered strong gains yesterday, 28 June 2017 as bank stocks led the charge. The S&P 500 index notched its biggest one-day gain since late April 2017.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content