Stocks of metal firms and oil exploration and production companies led gains for key benchmark indices. At 10:19 IST, the barometer index, the S&P BSE Sensex, was up 113.23 points or 0.46% at 24,759.71. The gains for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty was up 21.30 points or 0.28% at 7,506.65.
The Sensex and the Nifty, both, hit five-week high. The Sensex rose 147.14 points, or 0.6% at the day's high of 24,793.62 in morning trade, its highest level since 2 February 2016. The index fell 17.25 points, or 0.07% at the day's low of 24,629.23 in early trade. The Nifty rose 41.80 points, or 0.56% at the day's high of 7527.15 in early trade, its highest level since 2 February 2016. The index fell 2.70 points, or 0.04% at the day's low of 7,482.65 in early trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,368 shares rose and 593 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.38%, underperformorning the Sensex. The BSE Small-Cap index was currently up 0.83%, outperforming the Sensex.
In overseas stock markets, markets in Asia lost ground, stepping back from their recent rally, with weak China trade data weighing on the sentiment. China's Shanghai Composite was currently down 1.62%. Hong Kong's Hang Seng index was currently off 0.91%. China's February exports fell 25.4% in dollar terms, while imports fell 13.8%. The drop in exports was the largest on-year drop since 2009. US stocks eked out small gains yesterday, 7 March 2016, partly due to a jump in oil prices.
Metal shares edged higher after overnight rally in commodity prices. Steel Authority of India (up 9.36%), Bhushan Steel (up 6.75%), Hindalco Industries (up 5.92%), Hindustan Copper (up 4.59%), National Aluminium Company (up 3.07%), Jindal Steel & Power (up 2.93%), Tata Steel (up 2.38%), Hindustan Zinc (up 1.36%) and JSW Steel (up 0.89%) edged higher. Vedanta (up 5.44%) and NMDC (up 7.19%) surged as spot iron ore price rose by almost 20% in a single trading session in the global markets yesterday, 7 March 2016. According to reports, the surge in iron ore price was fueled by optimism about the ability of China -- the biggest consumer of iron ore in the world -- to avoid a disastrous hard-landing of its economy. The Chinese government said over the weekend that it will emphasize growth over economic restructuring this year. The news added to rising optimism about Chinese demand. Other commodities, including oil, are also on the upswing.
Shares of oil exploration and production companies rose as global crude oil prices surged. Cairn India (up 5.23%), Oil India (up 2.57%), ONGC (up 1.99%) and Reliance Industries (up 1.38%), edged higher. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
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Shares of most public sector oil marketing companies (PSU OMCs) also edged higher. HPCL (up 0.15%) and Indian Oil Corporation (up 1.47%) rose. BPCL was down 0.04%.
In the global commodities markets, Brent for May settlement was currently down 56 cents at $40.28 a barrel. The contract had jumped $2.12 a barrel or 5.48% to settle at $40.84 a barrel during the previous trading session.
Meanwhile, as per the monthly data released by Association of Mutual Funds In India (AMFI), net inflow into equity mutual funds totaled Rs 2522 crore in February 2016, lower than the inflow of Rs 2914 crore in January 2016. The net inflow into balanced funds totaled Rs 941 crore in February 2016, which was higher than inflow of Rs 880 crore in January 2016. Balanced funds invest the money in a combination of equity and debt, with majority of the investment going into equity. The funds' investments range from 65% to 80% in equity and the rest in debt.
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