Key benchmark indices continued to swing between gains and losses near the flat line in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 13.78 points or 0.04% at 31,223.57. The Nifty 50 index rose 15.25 points or 0.16% at 9,628.55. A private survey showing service sector expanding at its fastest pace in eight months in June and gains in most global stocks provided support to local indices.
The movement of indices was restricted within a narrow range near the flat line so far during the session. Market movement remained lacklustre amid geopolitical concerns after North Korea launched a long-range ballistic missile.
The S&P BSE Mid-Cap index rose 0.79%. The S&P BSE Small-Cap index gained 0.93%. Both these indices outperformed the Sensex.
The breadth, indicating strength of the market was strong. On BSE, 1,595 shares rose and 953 shares fell. A total of 153 shares were unchanged.
L&T rose 0.14% after the company fixed 14 July 2017 as the record date for 1:2 bonus issue of shares. The announcement was made during market hours today, 5 July 2017.
Shares of power generation and power distribution companies were mixed. NTPC (up 0.51%), Torrent Power (up 0.92%), Tata Power Company (up 0.91%), Reliance Infrastructure (up 1.02%) and Reliance Power (up 0.71%) gained. NHPC (down 0.8%), Adani Power (down 0.69%), and Power Grid Corporation of India (down 0.12%) declined.
Shares of psu coal mining major Coal India gained 0.06%.
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Pharma stocks gained on renewed buying. Sun Pharmaceutical Industries (up 0.22%), Aurobindo Pharma (up 0.2%), Cipla (up 0.21%), Dr Reddy's Laboratories (up 0.81%), and Glenmark Pharmaceuticals (up 1.33%) gained. Wockhardt declined 0.94%.
Jubilant Life Sciences rose 2.49% to Rs 708.75 after a domestic brokerage reportedly initiated coverage on the stock with a buy rating and a target price of Rs 905. The domestic brokerage reportedly expects strong growth in pharma and life science ingredients segments going ahead.
Cadila Healthcare rose 0.4% after the company announced the initiation of a phase Il trial investigating ZYAN1, an oral hypoxia-inducible factor prolyl hydroxylase inhibitor (HIF-PHI), as a treatment for anemia associated with chronic kidney disease (CKD). The announcement was made during trading hours today, 5 July 2017.
Lupin gained 3.72% after the company announced the launch of generic Vigamox Ophthalmic solution in the US. The company launched Moxifloxacin Hydrochloride Opthalmic Solution USP, 0.5% (base) having received an approval from the United States Food & Drug Administration (USFDA). The announcement was made during market hours today, 5 July 2017.
The medicine is indicated for the treatment of bacterial conjunctivitis caused by susceptible strains of the organisms. Vigamox Ophthalmic solution had US sales of $267.9 million in US as per IMS MAT March 2017.
Garware-Wall Ropes surged 6.95% after the company announced the signing of a Memorandum of Understanding (MoU) with Israel's Aero-T showing intention to combine their capability for manufacturing and supply of advanced aerostats for Indian Defence. Aero-T is a subsidiary of Israel based RT LTA Systems, the designer, developer and manufacturer of World class Aerostats. The announcement was made during market hours today, 5 July 2017.
Redington India lost 1.35% to Rs 126.75 on BSE after a bulk deal of 4.14 lakh shares was executed on the scrip at Rs 126 per share at 09:39 IST on BSE.
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, most European and 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).
On macroeconomic data front, 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.
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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