Key indices hovered in small range with positive bias in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was up 45.82 points or 0.14% at 33,416.45. The Nifty 50 index was up 9.85 points or 0.1% at 10,254.85. Auto stocks gained ahead of the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. Most pharma stocks fell. Shares of Mishra Dhatu Nigam saw a poor debut on the bourses.
Trading for the day began on a quiet note as stocks traded with small gains in early trade. Key benchmark indices picked up steam in morning trade to hit fresh intraday high. Stocks pared gains in mid-morning trade.
The S&P BSE Mid-Cap index was up 0.44%. The S&P BSE Small-Cap index was up 0.33%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were over two gainers against every loser on BSE. 1,630 shares rose and 793 shares fell. A total of 122 shares were unchanged.
Auto stocks gained ahead of the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors (up 5.3%), Maruti Suzuki India (up 1.01%), Mahindra & Mahindra (M&M) (up 0.55%), Hero MotoCorp (up 1.25%), Escorts (up 0.97%), Eicher Motors (up 3.43%) and Ashok Leyland (up 0.24%) rose. Bajaj Auto (down 0.21%) and TVS Motor Company (down 0.64%) fell.
Most pharma stocks fell. Dr Reddy's Laboratories (down 1.25%), Cipla (down 0.2%), Lupin (down 0.22%), Sun Pharmaceutical Industries (down 0.02%), Aurobindo Pharma (down 0.31%) and Wockhardt (down 1.85%) fell. GlaxoSmithKline Pharmaceuticals (up 1.19%), Cadila Healthcare (up 0.41%), Glenmark Pharmaceuticals (up 0.81%) and Alkem Laboratories (up 0.27%) rose.
Shares of Mishra Dhatu Nigam were trading at Rs 89.40 on BSE, a discount of 0.66% over the initial public offer price of Rs 90. The stock debuted at Rs 87, a discount of 3.33% to the initial public offer (IPO) price. So far the stock hit a high of Rs 90.90 and low of Rs 86.35. On BSE, so far 11.21 lakh shares were traded on the counter. Mishra Dhatu Nigam is a government of India enterprises is one of the leading manufacturers of high value speciality steel, superalloys and only manufacturer of titanium alloys in India.
Zensar Technologies rose 4.95% after the company announced that it has recently been awarded a four year, multi-million dollar contract from the City of San Diego for network services. The contract has the option of extension of two additional two-year terms with the total not to exceed contract value being approximately $79 million. The announcement was made after market hours yesterday, 3 April 2018.
Traders and investors are awaiting the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. The RBI's Monetary Policy Committee (MPC) meets today, 4 April 2018 and tomorrow, 5 April 2018 for the first bi-monthly monetary policy for 2018-2019. The resolution of the MPC will be announced at 14:30 IST tomorrow, 5 April 2018. As per reports, the central bank is likely to keep interest rates unchanged in the first monetary policy review of the current fiscal year, amid a gradual recovery in growth and easing inflation.
In its last meeting on 7 February 2018, RBI decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%. Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.25%.
Overseas, Asian stocks were trading mixed as investors took a cautious stance following the latest developments in US-China trade tensions. On the macro front, the service sector in China continued to expand in March, albeit at a slower pace, the latest survey from Caixin revealed with a services PMI score of 52.3, down from 54.2 in February.
US stocks closed higher yesterday, 3 April 2018 as Tesla, Amazon and other tech companies rebounded after recent sharp losses and as investors looked forward to earnings season.
The US unveiled 25% levies on a range of Chinese imports from high-tech industries like medicine, aviation and semiconductor machinery to intermediate goods like machinery and chemicals.
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