A bout of volatility was witnessed in afternoon trade as key benchmark indices recovered and were trading with small gains after nosediving into the negative terrain. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 48.92 points or 0.15% at 31,751.17. The Nifty index was up 20.45 points or 0.21% at 9,933.30. A firm start to trade in European stocks caused intraday recovery on the bourses.
Domestic stocks drifted higher in early trade. Key benchmark indices hovered within a narrow zone in the positive terrain till early afternoon trade. Stocks recovered after nosediving into the negative terrain in afternoon trade tracking firmness in European stocks.
The S&P BSE Mid-Cap index was up 0.35%. The S&P BSE Small-Cap index was up 0.76%. Both these indices outperformed the Sensex.
The market breadth indicating health of the market is strong. On BSE, 1,518 shares rose and 871 shares fell. A total of 137 shares were unchanged.
Bharti Airtel dropped 3.96% and was the top loser from the Sensex constituents.
Capital goods stocks traded mixed. Bharat Heavy Electricals (Bhel) (down 0.27%), BEML (down 0.21%), Havells India (down 1.21%), and Siemens (down 0.02%) declined. ABB India (up 1.62%), Bharat Electronics (up 0.29%), L&T (up 0.11%), and Thermax (up 0.85%) gained.
IT stocks were also mixed. Tech Mahindra (up 2.36%) and Mphasis (up 0.09%) edged higher. HCL Technologies (down 0.68%), Infosys (down 0.3%) and TCS (down 0.23%) declined.
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Wipro rose 0.22% after the company announced the launch of its newest digital pod in Edinburgh, Scotland, deepening its commitment to offer digital services at close proximity to its UK and European customers. The announcement was made after market hours yesterday, 4 September 2017.
The Edinburgh Pod is purpose built for Wipro's digital strategy, design and engineering teams to work in a collaborative and adaptive workspace, along with clients. Digital pods allow teams to work with the necessary autonomy to facilitate speed, continually evaluating progress with user research and technical performance data.
Bank of Baroda rose 0.84% after the bank said that it has kept marginal cost of funds based lending rates (MCLR) for various maturities from 7 September 2017 at the existing level after the review. The announcement was made during market hours today, 5 September 2017.
Separately, the state-run bank said that Life Insurance Corporation of India sold 2.039% or 4.69 crore shares of the bank in the open market from 10 July 2017 to 1 September 2017. After the sale, LIC now holds 7.249% stake in the bank. The announcement was made after market hours yesterday, 4 September 2017.
Shalimar Paints rose 4.99% after the company said that it re-commissioned its Chennai plant and started its commercial production from 4 September 2017. The announcement was made during trading hours today, 5 September 2017.
On the macro front, data released during market hours today, 5 September 2017 showed the Nikkei India Services Purchasing Managers' Index (PMI) rose to 47.5 in August from July's 45.9. The Indian service sector was again impacted by the goods and services tax (GST) during August as a second consecutive drop in new business resulted in another monthly decline in activity, the PMI survey said.
Overseas, European stocks edged higher in early trade as global financial markets cautiously return to the risk table and eye the start of trading on Wall Street after the US Labor Day holiday. Asian stocks were mixed as traders awaited further developments on the North Korea front. China's Caixin/Markit August services purchasing managers' index (PMI) today, 5 September 2017 showed an increase to 52.7 from 51.5 in the previous month. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Japan's services sector expanded in August at the slowest rate in six months. The Markit/Nikkei Japan Services PMI fell to a seasonally adjusted 51.6 from 52 in July.
US financial markets remained closed yesterday, 4 September 2017 in observance of Labor Day. The US on Monday called for the strongest possible sanctions to be imposed on North Korea a day after the North said it had tested a hydrogen bomb.
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