Market traded with modest gains in morning trade after a higher opening triggered by positive global cues. At 10:26 IST, the barometer index, the S&P BSE Sensex rose 101.61 points or 0.33% at 31,239.20. The Nifty 50 index advanced 30.85 points or 0.32% at 9,646.95. Both the Sensex, and the Nifty, hit record high in early trade.
The S&P BSE Mid-Cap index rose 0.5%. The S&P BSE Small-Cap index advanced 0.33%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,306 shares rose and 812 shares declined. A total of 108 shares were unchanged.
Realty stocks were mostly lower. HDIL (down 1.82%), Indiabulls Real Estate (down 0.66%), DLF (down 0.57%), D B Realty (down 0.48%), Unitech (down 0.19%) and Godrej Properties (down 0.05%) declined. Prestige Estates Projects (up 0.34%), Sobha (up 0.25%) and Oberoi Realty (up 0.13%) edged higher.
Telecom stocks advanced. Bharti Infratel (up 0.47%) and Idea Cellular (up 0.44%) edged higher. Reliance Communications (down 0.48%) edged lower.
Bharti Airtel rose 3.36% after the company announced that it has received the approval of the Securities and Exchange Board of India (Sebi), BSE and National Stock Exchange of India (NSE) for the proposed Scheme of merger between Airtel and Telenor (India) Communications. The announcement was made after market hours yesterday, 1 June 2017.
Bharti Airtel further stated that Telenor India and Airtel have filed the joint company application before the New Delhi Bench of the National Company Law Tribunal for approval of the proposed Scheme of merger. The merger is inter alia subject to other statutory approvals including from the Competition Commission of India.
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Airtel had earlier announced (in February 2017) that it had entered into a definitive agreement with Telenor South Asia Investments Pte Ltd (Telenor). As part Of the Scheme, Airtel will acquire Telenor India's running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles represent a high population concentration and therefore offer a high potential for growth.
The proposed acquisition will include transfer of all of Telenor India's assets and customers, further augmenting Airtel's overall customer base and network. It will also enable Airtel to further bolster its strong spectrum foot-print in these seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band.
Bajaj Auto was down 0.84% at Rs 2,817 after the company's total sales declined 10% to 3.13 lakh units in May 2017 over May 2016. Domestic sales fell 15% to 1.74 lakh units. Exports declined 3% to 1.39 lakh units. The announcement was made during market hours today, 2 June 2017.
Jayant Agro-Organics rose 2.02% at Rs 940 after the company scheduled a board meeting on 16 June 2017, to consider a stock-split proposal. The announcement was made before market hours today, 2 June 2017.
The India Meteorological Department (IMD) in its press release today, 2 June 2017 said that conditions are favourable for further advance of southwest monsoon into remaining parts of south Arabian Sea, Lakshadweep area and Kerala, some parts of central Arabian Sea, coastal & south interior Karnataka, some more parts of Tamilnadu, southwest, west central & east central & east central Bay of Bengal, most parts of northeast Bay of Bengal and some more parts of northeastern states during next 2 to 3 days.
Overseas, Asian stocks edged higher buoyed by overnight gains on Wall Street. US equities closed higher yesterday, 1 June 2017, as Wall Street got ready for the release of the monthly jobs report. The US government's nonfarm payrolls report is set for release today, 2 June 2017.
Meanwhile, data released by the private payroll firm ADP yesterday, 1 June 2017 showed that private US companies hired at a blistering pace in May, accelerating from the pause in April. Non-farm private employment surged 253,000 in May.
An improving labor market will likely support investors' expectations that the Federal Reserve will raise interest rates further in the coming months.
Among other global news, US President Donald Trump announced yesterday, 1 June 2017 that he will withdraw the US from the Paris climate pact, saying it favours other nations at the expense of American workers, while vowing to pursue a better deal.
The move reportedly drew an immediate condemnation from the leaders of France, Germany and Italy, who issued a statement insisting that the agreement was irreversible and cannot be renegotiated.
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