Key indices reversed course and regained positive terrain in mid-afternoon trade as sharp drop in crude oil prices supported gains. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 37.78 points or 0.12% at 31,407.12. The Nifty 50 index was up 2.35 points or 0.02% at 9,676.90. India imports around 80% of its oil requirements. Gains in index heavyweight Reliance Industries also aided gains on the bourses. However, weak global stocks kept gains under check.
Crude oil prices fell around 2%, as news of a rise in US production added to earlier reports that Organization of Petroleum Exporting Countries (OPEC) output was also on the rise. Brent crude oil futures for September delivery dropped 86 cents to $47.25 a barrel.
The S&P BSE Mid-Cap index rose 0.1%, underperforming the Sensex. The S&P BSE Small-Cap index gained 0.46%, outperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,423 shares rose and 1,168 shares fell. A total of 136 shares were unchanged.
Index heavyweight Reliance Industries (RIL) rose 2.23%.
Sugar stocks surged after report suggested that the central government is considering steps to protect the industry and farmers' realizations as sugar production in India is estimated to go up 25-30% in the sugar year 2017-18. Balrampur Chini Mills (up 1.44%),, Shree Renuka Sugars (up 20%), Sakthi Sugars (up 11.82%), Rana Sugars (up 9.51%), Triveni Engineering & Industries (up 2.02%) and Dwarikesh Sugar Industries (up 2.78%) surged.
The steps include a rise in the import duty from the present 40%, a higher ethanol price for supplying to oil marketing companies (OMCs) and reviewing the goods and services tax (GST) rates for ethanol and molasses. The import duty rise could come anytime and be up to 20% higher, to ensure no more than the 500,000 tonnes of permitted import takes place, added report.
Shares of power generation and power distribution companies gained. Torrent Power (up 0.19%), NHPC (up 2.07%), NTPC (up 0.09%), Adani Power (up 1.23%), Reliance Infrastructure (up 1.06%) and Reliance Power (up 0.12%) gained. Tata Power Company (down 0.31%) and Power Grid Corporation of India (down 0.02%) declined.
Shares of psu coal mining major Coal India rose 0.42%.
Glenmark Pharmaceuticals rose 1.79% after the company said that Glenmark Pharmaceuticals Inc., USA was granted final approval by the United States Food & Drug Administration (USFDA) for Amlodipine and Olmesartan Medoxomil Tablets, 5 mg/20 mg, 5 mg/40 mg, 10 mg/20 mg, and 10 mg/40 mg, the generic version of Azor Tablets, 5 mg/20 mg, 5 mg/40 mg, 10 mg/20 mg, and 10 mg/40 mg, of Daiichi Sankyo, Inc.
According to IMS Health sales data for the 12 month period ended May 2017, the Azor Tablets, 5 mg/20 mg, 5 mg/40 mg, 10 mg/20 mg, and 10 mg/40 mg market achieved annual sales of approximately $211.6 million. The announcement was made before market hours today, 7 July 2017.
Overseas, European bourses declined as investors look out for fresh economic data, a G-20 meeting in Hamburg and continue to mull the possible end of monetary stimulus from central banks.
German industrial output growth accelerated in May. Rising for the fifth month in a row, industrial output in Europe's largest economy increased by 1.2% in May from April, adjusted for seasonal swings and calendar effects, the economics ministry said. French industrial production rose further than expected in May on a surge in output of manufactured goods, statistics showed. Industrial output in the eurozone's second-largest economy rose 1.9% on the month in May.
Asian stocks declined after negative close for US stocks overnight as investors become more cautious about the prospects of global central bank tightening.
US stocks closed lower yesterday, 6 July 2017 as investors continued to sell tech firms. A combination of geopolitical jitters and growing signs that global central banks are inching closer to unwinding policies that have helped to support both stocks and government bonds is also weighing on the broader market.
US private-sector employers added a seasonally-adjusted 153,000 jobs during June month, below the forecast. A closely watched US non-farm jobs report for June is due later in the day. The US service sector expanded at a healthy pace in June, according to a closely watched survey released. The Institute for Supply Management's nonmanufacturing index rose to 57.4% in June from 56.9% in May.
US trade deficit fell 2.3% in May. The deficit slipped to $46.5 billion in May from $47.6 billion in April, the Commerce Department said.
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