Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 162.60 points or 0.43% at 37,828.40. The Nifty 50 index was up 41.75 points or 0.37% at 11,431.20. Metal and mining stocks rose.
Volatility struck bourses in early trade as the key benchmark indices trimmed almost entire gains after a higher start triggered by positive Asian stocks. Stocks hovered with small gains in morning trade.
The S&P BSE Mid-Cap index was up 0.27%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.61%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1345 shares rose and 950 shares fell. A total of 112 shares were unchanged.
Maruti Suzuki India fell 0.49%. Maruti Suzuki India during market hours today announced the introduction of Auto Gear Shift (AGS) option in top-end ZXi+ and ZDi+ variants of its best seller - all-new Swift on customer demand. Maruti Suzuki had launched the third generation of Swift in February 2018. The all-new Swift comes with a new exciting design, enhanced performance and advanced passenger safety, pedestrian safety and child safety. At the launch, AGS transmission was offered in VXI, ZXI, VDI and ZDI variants.
Metal and mining stocks rose. Tata Steel (up 1.46%), Steel Authority of India (Sail) (up 0.25%), National Aluminium Company (up 0.15%), Hindustan Zinc (up 0.39%), Jindal Steel & Power (up 1.7%), Hindustan Copper (up 0.03%), Vedanta (up 0.4%) and JSW Steel (up 0.85%) edged higher. NMDC (down 0.61%) fell.
Hindalco Industries rose 1% after the company's US-based subsidiary, Novelis, reported good earnings in June quarter. Novelis on Tuesday, 7 August 2018, posted a 10% increase in net income at $113 million in the June quarter on better operational performance and higher capacity utilisation. The company, which deals in aluminium rolled products, had reported a net income of $103 million in the same period last year.
However, including some tax benefits, the firm reported a net income of $137 million, against $101 million in year-ago period, attributable to its common shareholder, it said in a statement. The increase in net income, excluding special items, was mainly due to a 15% increase in adjusted EBITDA over the prior year to $332 million in the first quarter of fiscal 2019, it said.
Its sales increased 16% to $3.1 billion, driven by higher average aluminium prices, higher shipments, and more favourable product mix, partially offset by lower conversion premiums on some products, the statement said.
Overseas, most Asian equities were trading higher as investors looked past protectionism tussles and instead focused on U.S. stocks approaching fresh all-time highs. China's trade surplus narrowed to 176.96 billion yuan ($25.91 billion) in July, from a surplus of 261.9 billion yuan the previous month, official data showed Wednesday China's exports in July grew 6% from a year earlier in yuan terms, following a 3.1% increase in June. Imports for July surged 20.9% in yuan terms from a year earlier, compared with a 6% increase in June.
Trade tensions remain in focus after the Trump administration said it will impose 25% tariffs on $16 billion in Chinese imports starting on 23 August 2018. The administration already placed tariffs on $34 billion of Chinese goods last month but delayed on the additional tariffs to hear from US companies.
US stocks closed higher Tuesday as investors continued to brush aside anxiety over the trade war between the US and China and instead focus on positive corporate earnings.
On the economic-data front, the latest report from the Labor Department showed there were 6.66 million job openings at the end of June, up fractionally from May's levels and the third highest in history.
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