Key benchmark indices hovered in positive zone in morning trade on steady buying in select index pivotals. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 76.64 points or 0.24% at 31,739.38. The Nifty index was up 28.60 points or 0.29% at 9,958.50. Capital goods stocks edged higher on renewed buying. Cement stocks rose.
Stocks drifted higher in early trade led by L&T and HDFC Bank.
The S&P BSE Mid-Cap index was up 0.45%. The S&P BSE Small-Cap index was up 0.7%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,337 shares rose and 745 shares fell. A total of 87 shares were unchanged.
Overseas, Asian stocks were trading on a mixed note as investors braced for damage that Hurricane Irma may inflict on Florida. China on Friday reported August exports were up 5.5% from a year ago in dollar terms, while imports were up 13.3% in dollar terms. China on Friday also reported August exports were up 6.9% in yuan terms while imports were up 14.4% in yuan terms from a year ago, Chinese customs data showed.
US stock indexes ended slightly lower yesterday, 7 September 2017 as investors sold financials, consumer-discretionary and telecommunication shares. On the data front, the number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas, but the underlying trend remained consistent with a firming jobs market.
Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015, the Labor Department said on Thursday.
The European Central Bank (ECB) held interest rates steady at 0% on Thursday. ECB President Mario Draghi said the central bank would be prepared to make a decision on its quantitative easing program at its October meeting. For now, the central bank's net asset purchases of 60 billion euro a month would continue to the end of the year or beyond, if necessary, Draghi said.
Meanwhile, the threat from North Korea lingers. US President Donald Trump said it's not inevitable that the US will wind up in a war with North Korea over its continued development of nuclear weapons, though military action remains an option. Pyongyang may test a missile this weekend to coincide with its founding day on 9 September 2017.
Back home, capital goods stocks edged higher on renewed buying. L&T (up 2.97%), ABB India (up 1.07%), Bharat Electronics (up 0.44%), Siemens (up 0.51%) and Thermax (up 0.03%) gained. Bharat Heavy Electricals (Bhel) (down 0.23%) and BEML (down 1.04%) fell.
Punj Lloyd rose 9.45% after the company said it received the Letter of Award (LoA) for construction and commissioning of balance/left out canal work, including cross drainage structures and design, for Gosikhurd National project in Bhandara, Nagpur and Chandrapur districts of Maharashtra for VIDC, Phase - I / Pkg - I by NBCC (India) for a total contract value of Rs 870.15 crore. The announcement was made after market hours yesterday, 7 September 2017.
Cement stocks rose. Ambuja Cements (up 0.53%), ACC (up 0.34%), UltraTech Cement (up 0.77%) and Shree Cement (up 0.35%) gained.
Grasim Industries was up 0.34%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Plastiblends India lost 3.16% after net profit fell 40.6% to Rs 5.28 crore on 1.64% decline in total revenue to Rs 145.54 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 7 September 2017.
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