Domestic shares jumped after tepid US jobs data on Friday eased fears of faster rate hikes by the US Federal Reserve. The barometer index, the S&P BSE Sensex, rose 292.76 points or 0.84% to 35,208.14, as per the provisional closing data. The Nifty 50 index rose 97.25 points or 0.92% to 10,715.50, as per the provisional closing data. Investors fear that a rate hike in the US could set off capital outflows from emerging market economies like India. The Sensex provisionally ended above the psychologically important 35,000 level.
After opening higher, market turned range bound in morning trade. Key indices jumped in late trade on fresh buying momentum. The Sensex rose 344.43 points, or 0.99% at the day's high of 35,259.81 in late trade. The index rose 62.36 points, or 0.18% at the day's low of 34,977.74 in morning trade. The Nifty rose 107.40 points, or 1.01% at the day's high of 10,725.65 in late trade. The index rose 17.40 points, or 0.16% at the day's low of 10,635.65 in morning trade.
Among secondary barometers, the BSE Mid-Cap index rose 0.55%. The BSE Small-Cap index rose 0.56%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,394 shares rose and 1,299 shares fell. A total of 145 shares were unchanged.
Mahindra & Mahindra (up 3.68%), Axis Bank (up 2.68%), Tata Steel (up 2.52%), State Bank of India (up 1.94%) and Reliance Industries (up 1.90%), were the major Sensex gainers.
ICICI Bank rose 2.70% at Rs 290.55. The bank will announce Q4 results today, 7 May 2018.
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Dr Reddy's Laboratories (down 1.7%), Coal India (down 1.66%), TCS (down 1.35%), Sun Pharmaceutical Industries (down 1.11%), HDFC Bank (down 0.52%) and NTPC (down 0.26%), were the top Sensex losers.
Tata Power was down 0.24%. The company announced during trading hours today, 7 May 2018, that it produced 53,556 million units of electricity in the financial year 2017-18 from all its units, ranging from thermal, hydel, wind and solar. It marks a rise of 1.36% in total electricity generated in the FY 2018 as compared to 52,512 million units power generated in the previous fiscal. Tata Power generated 14,255 million units of electric in the fourth quarter of the financial year ended 31 March 2018. Tata Power, together with all its subsidiaries and jointly controlled entities, has an installed generation capacity of 10757 MW (as of May 2018) as compared to 10,613 MW in FY 2017 from various fuel sources, such as thermal (coal, gas and oil), hydroelectric power, renewable energy (wind and solar PV) and waste heat recovery.
Overseas, European shares were trading higher supported by some good earning updates and gains in Nestle after the Swiss-based food giant agreed a tie-up with Starbucks. Over the weekend, the French government urged Air France managers and unions to resolve the stand-off. Asian shares settled mixed despite the strong closing on Wall Street as investors digested last week's trade talks and US jobs numbers.
China and the US ended the second day of trade talks on Friday. Both sides recognise there are still big differences on some issues and that they need to continue to step up their work to make progress. The two sides exchanged views on expanding US exports to China, trade in services, bilateral investment, protection of intellectual property rights, resolution of tariffs and non-tariff measures.
US stocks logged sharp gains on Friday, 4 May 2018, as technology stocks rallied, overshadowing uncertainty over tense trade talks between the US and China and a weaker-than-expected rise in April nonfarm payrolls.
The US created 164,000 new jobs in April. Separately, the unemployment rate fell to 3.9% in April from 4.1% in March. The first time the jobless rate has dropped below 4% since the end of 2000.
The US Federal Reserve on 2 May 2018, kept a key US interest rate steady, saying that while inflation has moved higher, it's likely to run near the central bank's 2% target in the coming months. The central bank maintained its fed funds at a range of 1.5%-1.75%. In its statement, the Fed noted the latest readings that show both overall and core inflation have moved close to the central bank's 2% goal. Fed officials were split between whether to raise rates three or four times this year.
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