Key benchmark indices held firm after trimming gains in morning trade after witnessing an initial spurt. At 10:25 IST, the barometer index, the S&P BSE Sensex was up 179.87 points or 0.58% at 31,101.48. The Nifty 50 index was up 50.15 points or 0.53% at 9,571.05. The Sensex and the Nifty, hit almost one-week high. The sentiment was boosted after the biggest tax reform, the Goods and Services Tax came into force from 1 July 2017. The gains were also supported by a sharp jump in index heavyweight ITC.
The S&P BSE Mid-Cap index rose 0.63%. The S&P BSE Small-Cap index gained 0.79%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost three gainers against every loser on BSE. 1,504 shares rose and 506 shares fell. A total of 88 shares were unchanged.
The Sensex gained 336.72 points or 1.08% at the day's high of 31,258.33 in early trade, its highest level since 27 June 2017. The index rose 95.50 points or 0.3% at the day's low of 31,017.11 at the onset of the session. The Nifty spurted 91.85 points or 0.96% at the day's high of 9,612.75 in early trade, its highest level since 27 June 2017. The index gained 22.65 points or 0.23% at the day's low of 9,543.55 at the onset of the session.
Most realty stocks rose on renewed buying. DLF (up 0.1%), D B Realty (up 0.77%), Sobha (up 1.06%), NBCC (up 0.79%), Godrej Properties (up 0.28%), and Oberoi Realty (up 0.8%) edged higher. Indiabulls Real Estate (down 0.3%), Housing Development & Infrastructure (HDIL) (down 0.59%), and Unitech (down 1.67%) declined.
Metal & mining stocks gained on positive economic data in China. JSW Steel (up 0.86%), Bhushan Steel (up 0.67%), Hindustan Copper (up 1.25%), Vedanta (up 1.22%), Hindalco Industries (up 2.62%), Hindustan Zinc (up 0.86%), Jindal Steel & Power (up 1.06%), Tata Steel (up 1.3%), Steel Authority of India (Sail) (up 1.11%), National Aluminum Company (up 0.39%) and NMDC (up 1.71%) gained. China is the world's largest consumer of steel, copper and aluminum.
Bajaj Auto dropped 0.77% after total sales fell 23% to 2.44 lakh units in June 2017 over June 2016. Domestic sales slumped 34% to 1.26 lakh units in June 2017 over June 2016. Exports dropped 4% to 1.17 lakh units in June 2017 over June 2016. The announcement was made before market hours today, 3 July 2017.
Ashok Leyland jumped 5.33% after the company's total sales rose 11% to 12,330 units in June 2017 over June 2016. The announcement was made during trading hours today, 3 July 2017. Ashok Leyland's sales of light commercial vehicles (LCV) rose 29% to 3,128 units in June 2017 over June 2016. Sales of medium & heavy commercial vehicles (M&HCV) rose 6% to 9,202 units in June 2017 over June 2016.
Index heavyweight and cigarette maker ITC jumped 6.53% post developments around taxation on cigarettes. The Central Board of Excise and Customs (CBEC), reportedly over the weekend, removed excise and additional excise duty on cigarettes, while the National Calamity Contingent continued to remain.
JMC Projects (India) gained 3.1% after the company secured three new orders worth Rs 710 crore. The announcement was made after market hours on Friday, 30 June 2017. The company has won order for two water pipeline projects in Madhya Pradesh totaling Rs 257 crore. Another orders are for four commercial projects in Bangalore and Chennai totalling Rs 340 crore and one residential project in Chennai of Rs 115 crore.
Kalpataru Power Transmission rose 1.54% after the company said it has secured new orders worth about Rs 676 crore. The announcement was made after market hours on Friday, 30 June 2017.
On macroeconomic data front, the output of eight core infrastructure industries, comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP), improved 3.6% in May 2017. The cumulative output of eight core infrastructure industries moved up 3.2% in April-May 2017-18.
Markit Economics will unveil the result of a monthly survey on the performance of India's manufacturing sector for June 2017 at 10:30 IST today, 3 July 2017. The Nikkei Manufacturing PMI in India fell to 51.6 in May 2017 from 52.5 in April 2017.
The Goods and Services Tax came into force from 1 July 2017, amid a historic midnight session in the Central Hall of Parliament. President Pranab Mukherjee, Prime Minister Narendra Modi, and Finance Minister Arun Jaitley addressed the gathering, before the President and the Prime Minister pressed a button to mark the launch of GST. The biggest tax reform since independence - GST - will pave the way for realization of the goal of One Nation - One Tax - One Market.
Overseas, Asian stocks were mixed as the second half of the year kicked off, tracking mixed signals from US markets. US stocks closed mixed on Friday, 30 June 2017.
On macro economic data front, a private gauge of China's factory activity rebounded in June to show an expansion, indicating an improvement in the manufacturing sector that tallied with official data released last week. The Caixin China manufacturing purchasing managers' index rose to 50.4 in June from 49.6 in May, showing a rise in activity, Caixin Media Co. and research firm Markit said. The 50 level separates an expansion in manufacturing activity from a contraction.
Japanese manufacturing activity expanded at a slightly slower pace in June. The final June Markit/Nikkei Japan Manufacturing Purchasing Managers' Index (PMI) was 52.4, higher than a preliminary reading of 52.0 but still below a final 53.1 in May.
Japan's business confidence among the nation's large manufacturers strengthened to its highest level in more than three years in the second quarter, according to a central bank survey. The main index measuring large manufacturers' confidence rose to plus 17 in the April-June period from plus 12 previously, according to the Bank of Japan's quarterly tankan survey.
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