Key barometers extended gains and hit fresh intraday high in afternoon trade, following a positive opening in European market. At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 228.99 points or 0.65% at 35,672.66. The Nifty 50 index was up 77.30 points or 0.72% at 10,844.95.
Trading for the week began on upbeat note as the key benchmark indices drifted higher in early trade. Stocks extended early gains and hit fresh intraday high in morning trade. Stocks held firm in mid-morning trade on sustained buying demand in index pivotals. Indices hovered near the day's high in afternoon trade.
The S&P BSE Mid-Cap index was up 0.60%, underperforming the Sensex. The S&P BSE Small-Cap index was up 1.06%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1643 shares rose and 861 shares fell. A total of 123 shares were unchanged.
Power Grid Corporation of India (down 1.61%), Tata Steel (down 0.43%), ONGC (down 0.29%) and Hero MotoCorp (down 0.16%), were the Sensex losers.
Bharti Airtel (up 3.26%), Adani Ports and Special Economic Zone (up 1.9%), Dr Reddy's Laboratories (up 1.73%), State Bank of India (up 1.41%), IndusInd Bank (up 1.32%), Sun Pharmaceuticals Industries (up 1.3%) and ITC (up 1.27%), were the top Sensex gainers.
Index heavyweight Reliance Industries (RIL) rose 0.97%. Reliance Brands, a subsidiary of the company, has purchased 100% stake in Rhea Retail (Rhea) for all cash consideration of Rs 203.46 crore. Rhea is in the business of selling of products in India for expectant mothers and in general merchandise for children. The announcement was made after market hours on Friday, 8 June 2018.
Rhea being in the retailing industry as Reliance Brands, the acquisition would result in significant synergies. Rhea was incorporated on 9 April 2007. The turnover of Rhea was Rs 200 crore in FY 2017-18, FY 2016-17 was Rs 200 crore and Rs 175 crore in FY 2015-16.
L&T rose 0.36% after the company said that its construction arm L&T Construction has won orders worth Rs 2210 crore across two business segments. The Water & Effluent Treatment Business secured orders worth Rs 2044 crore and Heavy Civil Infrastructure Business secured orders worth Rs 166 crore. The announcement was made during market hours today, 11 June 2018.
Overseas, European shares were trading higher ahead of a historic meeting between the US President and the North Korean leader.
Investors are focusing on the landmark summit between North Korea and the United States. Both President Donald Trump and North Korea's Kim Jong Un are already in Singapore ahead of a scheduled meeting Tuesday morning at a luxury hotel. The meeting takes place after tensions emerged between Trump and Western allies in the aftermath of a G-7 meeting. Trump decided to reject the joint G-7 statement after comments from Canadian Prime Minister Justin Trudeau that Canadians would not be pushed around. The spat emerged due to different views on tariffs and world trade.
Asian stocks were mixed with limited fallout from a tumultuous G-7 meeting. Australia's markets are shut for a holiday. US stocks closed higher on Friday, 8 June 2018 as investors brushed aside tensions between the US and major allies.
Investors are closely watching series of global cues this week. US President Donald Trump and North Korean leader Kim Jong Un will meet for an historic summit in Singapore tomorrow, 12 June 2018. On the same day, UK Prime Minister Theresa May faces votes that could derail her Brexit policy.
The US Federal Reserve is expected to raise interest rates Wednesday, 13 June 2018 as the US economy remains solid. European Central Bank rates decision on Thursday, 14 June 2018 and briefing with President Mario Draghi. Bank of Japan June monetary policy decision and news conference will follow on Friday, 15 June 2018.
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