The market extended gains and hit fresh intraday high in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was up 191.37 points or 0.54% at 35,478.11. The Nifty 50 index was up 48.90 points or 0.46% at 10,759.35. Recovery in other Asian stocks boosted sentiment.
After opening higher, key indices pared gains in morning trade. Indices firmed up once again in mid-morning trade and hit fresh intraday high in early afternoon trade. The Sensex rose 195.17 points, or 0.55% at the day's high of 35,481.91 in early afternoon trade. The index rose 42.77 points, or 0.12% at the day's low of 35,329.51 in morning trade. The Nifty rose 54.25 points, or 0.51% at the day's high of 10,764.70 in early afternoon trade. The index rose 13.60 points, or 0.13% at the day's low of 10,724.05 in morning trade.
Overseas, Asian stocks bounced back and were trading higher due to bargain hunting after sharp losses made in the previous session. US stocks declined on Tuesday, as investors sold stocks following President Donald Trump's late-Monday threat to slap an additional $400 billion in tariffs on China goods. The announcement represented the latest escalation in a dispute between the two largest economies in the world, rattling investors.
After Beijing's retaliation against US planned tariffs on $50 billion worth of Chinese imports, Trump asked US Trade Representative Robert Lighthizer late Monday to identify $200 billion more in Chinese products that could be subject to tariffs of 10%. The US president also threatened to find $200 billion more worth of goods if China tried to retaliate against those additional tariffs.
A spokesperson from China's Ministry of Commerce reportedly said China will have no choice but to take comprehensive measures in response to the US's trade moves
On the US data front, Housing starts ran at a seasonally adjusted annual 1.35 million annual rate in May, the Commerce Department said Tuesday. Permits were at a 1.3 million seasonally adjusted annual rate.
Also Read
In the domestic market, among secondary barometers, the BSE Mid-Cap index was up 0.11%. The BSE Small-Cap index was up by 0.28%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,255 shares rose and 1,084 shares fell. A total of 114 shares were unchanged.
Most cement shares declined. ACC (down 0.78%), Ambuja Cements (down 0.7%) and UltraTech Cement (down 0.2%), edged lower.
Grasim Industries was up 0.37%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Most auto shares rose. Escorts (up 0.68%), Bajaj Auto (up 0.66%), Maruti Suzuki India (up 0.58%), Ashok Leyland (up 0.51%), Tata Motors (up 0.38%) and Mahindra & Mahindra (up 0.30%), edged higher. Hero MotoCorp (down 0.01%), Eicher Motors (down 0.23%) and TVS Motor Company (down 0.92%), edgede lower.
On the political front, President Ram Nath Kovind approved the imposition of governor's rule in Jammu and Kashmir, a day after the BJP pulled out of its alliance with the Peoples Democratic Party (PDP) in Jammu and Kashmir. Following the President's approval, governor NN Vohra will be presiding over the state.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content