Market continued to trade firm in positive zone in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was up 161.40 points or 0.52% at 31,406.96. The Nifty 50 index was up 46.15 points or 0.48% at 9,683.75.
Good monsoon rains so far during the current monsoon season perked up sentiment. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Key indices opened with small gains and accumulated further gains till mid-morning trade. The Sensex and the Nifty, both, hit highest level in two weeks in mid-morning trade.
The S&P BSE Mid-Cap index rose 0.5%, underperforming the Sensex. The S&P BSE Small-Cap index gained 0.8%, outperforming the Sensex.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,641 shares rose and 884 shares fell. A total of 121 shares were unchanged.
IT stocks edged higher. HCL Technologies (up 0.27%), Wipro (up 0.21%), Infosys (up 0.17%) and Oracle Financial Services Software (up 0.11%) gained. TCS (down 0.35%) and Persistent Systems (down 0.9%) edged lower. Tech Mahindra was unchanged at Rs 378.
Metal and mining stocks were mostly higher. National Aluminium Company (up 2.15%), NMDC (up 2.07%), Jindal Steel & Power (up 1.42%), Hindustan Copper (up 1.29%), Tata Steel (up 0.78%), Vedanta (up 0.46%) and Steel Authority of India (up 0.25%) gained. Hindalco Industries (down 0.45%), JSW Steel (down 0.16%) and Hindustan Zinc (down 0.15%) edged lower.
Tamilnadu Petroproducts fell 2.76% at Rs 54.65, with the stock sliding on profit booking after recent rally. Shares of Tamilnadu Petroproducts had rallied 38.25% in the preceding three trading sessions to settle at Rs 56.20 yesterday, 5 July 2017, from its close of Rs 40.65 on 30 June 2017.
Meanwhile, the India Meteorological Department said that area weighted rainfall for the country as a whole for the current monsoon season till 5 July 2017 was 217.3 mm compared to normal of 206.7 mm with a departure of excess 5%.
Overseas, European equities dropped as investors digest minutes from key central banks and follow geopolitical events. German manufacturing orders rebounded in May, albeit by less than expected, depressed by a relatively low share of bulk orders. Germany's economics ministry said that total orders for the important sector increased by 1% compared with April, adjusted for seasonal swings and calendar effects.
Most Asian stocks declined after underwhelming overnight moves in the US, as investors adopted a collective wait-and-see attitude. Market participants are especially concerned about the repercussions of North Korea's missile launch earlier this week, in addition to a Group of 20 meeting in Germany and Friday's US jobs report.
In the US, the Nasdaq Composite Index and S&P 500 index finished higher while the Dow Jones Industrials Average closed fractionally lower yesterday, 5 July 2017, as Federal Reserve policy meeting minutes indicated a reduction in the central bank's economy-boosting balance sheet could begin soon, and technology stocks rallied amid a disappointing manufacturing report and a tumble in crude futures.
In minutes released from the Fed's June meeting, several members showed they're in favor of starting a reduction of the central bank's $4.5 trillion balance sheet. The minutes also showed that officials are divided on unemployment figures.
New orders for US-made goods fell more than expected in May. Factory goods orders dropped 0.8%, the Commerce Department said after a revised 0.3% decline in April. It was the second straight monthly decrease in orders.
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