Key benchmark indices edged higher in early trade on good prospects of monsoon rains. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 70.47 points or 0.23% at 31,261.03. The Nifty 50 index was up 13.50 points or 0.14% at 9,650.65. Metal and FMCG stocks led gains.
The S&P BSE Mid-Cap index rose 0.28%. The S&P BSE Small-Cap index advanced 0.51%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 926 shares rose and 417 shares declined. A total of 60 shares were unchanged.
Bharti Airtel (up 0.91%), GAIL (India) (up 0.89%) and ICICI Bank (up 0.88%) were the major gainers from the Sensex pack.
Oil India gained 1.08% after the company said that the company through its exploratory efforts has made one hydrocarbon discovery in the Baghjan Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of May 2017 in the well South Baghjan-2.
Oil India has made ten discoveries in its operational areas of Assam during 2016-17. The discoveries have opened up avenue for further exploration of already identified leads/prospects in the area. The announcement was made after market hours yesterday, 6 June 2017.
TCS declined 0.45%. The company announced that the company and Siemens unveiled a new collaboration around Internet of Things (IoT) innovation. Focused on customers in the manufacturing, energy, building technology, healthcare and railway industries the partnership will enable customers to benefit from new data insights and services based on MindSphere, the cloud-based, open IoT operating system from Siemens. The announcement was made after market hours yesterday, 6 June 2017.
Meanwhile, India's crucial monsoon rains are expected to reach 98% of the long-term average this year, the India Meteorological Department (IMD) reportedly said yesterday, 2 percentage points higher than its previous forecast, potentially boosting farm incomes and economic growth. The monsoon delivers about 70% of India's annual rainfall, critical for the farm sector. In April, the IMD had forecast this year's monsoon rains at 96% of the 50-year average of 89 centimetres.
Investors will closely watch the Reserve Bank of India's (RBI) monetary policy review scheduled today, 7 June 2017. The central bank is widely expected to keep policy rates unchanged.
Overseas, Asian stocks were mixed as investors remained noticeably risk averse ahead of several major political and economic events later this week.
US stocks closed lower yesterday, 6 June 2017 for a second session as investors exercised caution ahead of the UK elections and political uncertainties over former Federal Bureau of Investigation director James Comey's testimony this week. European Central Bank policy meeting is also due tomorrow, 8 June 2017.
British Prime Minister Theresa May looks on course to increase her parliamentary majority in Thursday's election, an opinion poll showed, shortly after another survey suggested the race with the opposition Labour Party was neck and neck.
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