Key benchmark indices extended gains and hit fresh intraday high in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 157.30 points or 0.43% at 36,508.53. The Nifty 50 index was up 50.30 points or 0.46% at 11,007.40. Gains were backed by strength in IT shares.
The Lok Sabha will take up the debate on the no-confidence motion against the Narendra Modi government, brought by the Telugu Desam Party, later today, 20 July 2018. The Lok Sabha proceedings will start at 11:00 IST.
Indices opened lower and firmed up as the session advanced. The Sensex rose 201.86 points, or 0.56% at the day's high of 36,553.09 in morning trade. The index fell 15.62 points, or 0.04% at the day's low of 36,335.61 in early trade. The Nifty rose 60.30 points, or 0.55% at the day's high of 11,017.40 in morning trade. The index fell 10.90 points, or 0.10% at the day's low of 10,946.20 in early trade.
Broader market recovered. Among secondary barometers, the BSE Mid-Cap index was up 0.33%. The BSE Small-Cap index was up 0.19%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 894 shares rose and 906 shares fell. A total of 106 shares were unchanged.
IT shares rose after the rupee hit an all-time low against the dollar today, 20 July 2018. Tech Mahindra (up 2.37%), MindTree (up 2.23%), Infosys (up 2.21%), MphasiS (up 1.53%), HCL Technologies (up 1.27%), TCS (up 0.48%) and Hexaware Technologies (up 0.34%), edged higher. Oracle Financial Services Software (down 0.43%) and Persistent Systems (down 0.98%), edged lower.
Wipro was up 0.74%. The company will announce Q1 results today, 20 July 2018.
A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 68.9875, compared with its close of 69.055 during the previous trading session. The rupee hit a new all-time low at 69.125 against the US dollar today, 20 July 2018.
Pharmaceutical shares were mixed. Cadila Healthcare (down 2.01%), Cipla (down 1.3%), Wockhardt (down 0.96%), Alkem Laboratories (down 0.91%), Piramal Enterprises (down 0.59%), Lupin (down 0.16%) and Divi's Laboratories (down 0.1%), edged lower. Aurobindo Pharma (up 0.04%), Strides Shasun (up 0.31%), Sun Pharmaceutical Industries (up 0.31%), GlaxoSmithKline Pharmaceuticals (up 0.36%), Glenmark Pharmaceuticals (up 0.37%), IPCA Laboratories (up 0.63%) and Dr Reddy's Laboratories (up 1.09%), edged higher.
Overseas, most Asian shares declined, tracking overnight slide in the US market amid US President Donald Trump's criticism of the Federal Reserve, while the yuan weakened further.
US stocks slipped on Thursday as earnings season rolled on, with investors digesting comments from Trump on the Fed. Trump told the media on Thursday that he was not "thrilled" that the Federal Reserve was hiking interest rates. Worries about a potential trade war also weighted on investor sentiment after Trump threatened "tremendous retribution" against the European Union on Wednesday, specifically mentioning auto tariffs, if his meeting with EU officials next week does not yield what he considers a fair auto trade deal.
On the US data front, initial jobless claims fell by 8,000 last week. Separately, the Philly Fed manufacturing index rose 6 points to a reading of 25.7 in July.
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