Key benchmark indices held firm and were hovering close to their intraday highs in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 221.16 points or 0.81% at 27,365.96. The Nifty 50 index was currently up 63.80 as points or 0.77% at 8,392.15. Firmness in Asian stocks boosted sentiment.
The Sensex rose 225.96 points or 0.83% at the day's high of 27,370.87 in mid-morning trade, its highest level since 26 October 2015. The barometer index rose 148.62 points or 0.54% at the day's low of 27,293.53 at the onset of the trading session. The Nifty rose 66.45 points or 0.79% at the day's high of 8,394.80 in mid-morning trade, its highest level since 20 August 2015. The index rose 44.30 points or 0.53% at the day's low of 8,372.65 at the onset of the trading session.
In overseas stock markets, Asian stocks edged higher led by gains in Chinese stocks as expectations increased that central banks might ease monetary policy following Britain's vote to leave the European Union last month. In mainland China, the Shanghai Composite was currently up 1.88%. In Hong Kong, the Hang Seng index was currently up 1.56%. US stocks rose for the fourth day on Friday, 1 July 2016, amid optimism on American growth and as central banks continued to signal support in staving off fallout from Britain's decision to leave the European Union. US market will remain shut today, 4 July 2016, on account of Independence Day.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,749 shares rose and 748 shares declined. A total of 188 shares were unchanged. The BSE Mid-Cap index was currently up 0.89%. The BSE Small-Cap index was currently up 1.21%. Both these indices outperformed the Sensex.
ONGC jumped 4.57% and was the top gainer from the Sensex pack.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 0.42%), Hindustan Copper (up 1.67%), Vedanta (up 2.29%), Hindustan Zinc (up 2.76%), Jindal Steel & Power (up 1.98%), Tata Steel (up 1.56%), Steel Authority of India (Sail) (up 2.06%), and National Aluminum Company (up 1.76%) gained. Bhushan Steel shed 0.48%.
High Grade Copper for September 2016 delivery was currently up 1.26% at $2.245 per pound on the COMEX.
Hindalco Industries gained 0.88% to Rs 125.90 after hitting 52-week high of Rs 126.40 in intraday trade.
NMDC rose 0.53%. The company has reduced the prices of lump iron ore to Rs 1700 per WMT with effect from 3 July 2016 from Rs 1800 per WMT fixed for June 2016. The prices of fines iron ore kept unchanged at Rs 1460 per WMT with effect from 3 July 2016 compared with prices fixed for June 2016. The announcement was made during market hours today, 4 July 2016.
The BSE Metal index had outperformed the market over the past one month till 1 July 2016, rising 8.41% compared with 1.61% rise in the Sensex. The index had also outperformed the market in past one quarter, rising 14.45% as against Sensex's 7.42% rise.
Realty stocks also rose. DLF (up 1.85%), Omaxe (up 0.9%), Indiabulls Real Estate (up 0.88%), Unitech (up 1.93%), Housing Development & Infrastructure (HDIL) (up 0.44%), and Oberoi Realty (up 1.33%) edged higher.
The BSE Realty index had outperformed the market over the past one month till 1 July 2016, rising 8.15% compared with 1.61% rise in the Sensex. The index had also outperformed the market in past one quarter, rising 21.95% as against Sensex's 7.42% rise.
Jaiprakash Associates rose 1.86% after the company announced on Saturday, 2 June 2016, that the joint lenders forum meeting held to review the progress made so far on the corrective action plan, approved by the lenders in January 2015, has agreed for invocation of strategic debt restructuring (SDR) taking 28 June 2016 as reference date, subject to approval of lenders. Further, the company has informed that a meeting of the board of directors of the company is scheduled on 4 July 2016, to review the progress of the divestment plans and other related matters.
MPS jumped 5.85% after the company announced that it has completed the acquisition of Magplus, a leading digital platform company for creating and distributing content apps, based in Sweden and USA. The announcement was made on Saturday, 2 July 2016. Magplus was a part of Bonnier Growth Media which is the venture arm of media conglomerate Bonnier and home to some of the fastest growing companies in the group.
Rahul Arora, CEO, MPS said that the acquistion of Magplus has enhanced the company's platform capabilities and expanded its reach into newer publishing markets including enterprises and magazine publishers.
Seamec rose 6.21% after the company said that HAL Offshore (HAL), the promoter of the company was awarded a letter of intent (LoI) by ONGC for charter hire of multi support vessel for the scope of work for three years. It has been agreed by and between the company and HAL for chartering the vessel SEAMEC - II by the company to HAL along with the marine crew only, Seamec said. The total contract value for three years will be about $27.69 million, the company said. The announcement was made during market hours today, 4 July 2016.
Meanwhile, monsoon rains have reportedly covered nearly all of India except some parts of Gujarat and Rajasthan, while the remaining region is likely to be covered this week. Rainfall has picked up in central and northern India in the last few weeks, helping to narrow the rainfall deficit in the current season to 6%, sharply down from 18% in the first week of June. The monsoon is expected to be above average this season. The monsoon is important for the farm sector, as around 70% of the country's farmlands are rain-fed. The rains have an impact on the whole economy, as rural spending on consumer goods depends on the rainfall.
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