Key benchmark indices edged higher in early trade tracking firmness in Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 64.77 points or 0.21% at 31,336.05. The Nifty 50 index was up 18.55 points or 0.19% at 9,682.45.
The S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index advanced 0.31%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 929 shares rose and 383 shares declined. A total of 46 shares were unchanged.
Overseas, most Asian stocks gained ahead of a number of news events with global implications. Later today, elections in the UK will get under way, the European Central Bank will hold its latest meeting and James Comey, the former director of the Federal Bureau of Investigation, will testify on Capitol Hill.
Japan's economy grew at a slower pace than initially estimated in the first quarter. The nation's gross domestic product, the broadest measure of economic activity, grew at an annualized pace of 1.0% from the previous three months, according to government data.
Banks and other financial companies led US stocks slightly higher yesterday, 7 June 2017, snapping a two-day losing streak for the market.
Back home, Tata Steel (up 2.87%), HDFC (up 0.96%) and Asian Paints (up 0.75%) rose from the Sensex pack.
Infosys dropped 0.54% after the company clarified after market hours yesterday, 7 June 2017, that the news reports on pricing cuts seen by the IT industry being attributed to the Infosys chief operating officer (COO) are incorrect.
His comments have been misrepresented. The comments made in the media interview refer to cost take out efforts by clients towards reducing their program investments in the 'run' side of business, to reinvest them in newer technologies or the 'change' side of business. Cost take outs by clients do not necessarily translate into an impact on vendor pricing.
There are enough levers available to meet the client demand on cost take-outs without necessarily impacting the pricing. Infosys commentary on pricing is no different from what it had shared with the market earlier. Infosys reiterated that it is not seeing anything new on pricing. This has also been clarified in the webcast of the Morgan Stanley India Summit, the company said.
The clarification was issued after a media report quoted Infosys' COO Pravin Rao saying that the company's clients were asking for 20-30% cut in prices for projects.
Tata Power Company declined 0.63% after the company said that rating agency ICRA has revised lower long term rating of the company from AA to AA-, while the short term rating has been reaffirmed at A1+. The announcement was made after market hours yesterday, 7 June 2017.
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