A bout of volatility was witnessed in mid-morning trade as stocks trimmed gains only to regain ground soon thereafter. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 43.40 points or 0.14% at 31,706.14. The Nifty index was up 13.85 points or 0.14% at 9,943.75. Most metal and mining stocks were in demand on fresh buying. Telecom stocks saw mixed trend.
Stocks drifted higher in early trade led by L&T and HDFC Bank. Key benchmark indices hovered in positive zone in morning trade.
The S&P BSE Mid-Cap index was up 0.04%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.34%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,148 shares rose and 1,080 shares fell. A total of 107 shares were unchanged.
Overseas, Asian stocks were trading on a mixed note as investors braced for damage that Hurricane Irma may inflict on Florida. China on Friday reported August exports were up 5.5% from a year ago in dollar terms, while imports were up 13.3% in dollar terms. China on Friday also reported August exports were up 6.9% in yuan terms while imports were up 14.4% in yuan terms from a year ago, Chinese customs data showed.
US stock indexes ended slightly lower yesterday, 7 September 2017 as investors sold financials, consumer-discretionary and telecommunication shares. On the data front, the number of Americans filing for unemployment benefits jumped to its highest level in more than two years last week amid a surge in applications in hurricane-ravaged Texas, but the underlying trend remained consistent with a firming jobs market.
Initial claims for state unemployment benefits soared by 62,000 to a seasonally adjusted 298,000 for the week ended Sept. 2, the highest level since April 2015, the Labor Department said on Thursday.
The European Central Bank (ECB) held interest rates steady at 0% on Thursday. ECB President Mario Draghi said the central bank would be prepared to make a decision on its quantitative easing program at its October meeting. For now, the central bank's net asset purchases of 60 billion euro a month would continue to the end of the year or beyond, if necessary, Draghi said.
Meanwhile, the threat from North Korea lingers. US President Donald Trump said it's not inevitable that the US will wind up in a war with North Korea over its continued development of nuclear weapons, though military action remains an option. Pyongyang may test a missile this weekend to coincide with its founding day on 9 September 2017.
Back home, most metal and mining stocks were in demand on fresh buying. Vedanta (up 1.95%), JSW Steel (up 0.84%), Tata Steel (up 1.1%), Steel Authority of India (Sail) (up 1.27%), Hindustan Zinc (up 0.83%), Jindal Steel & Power (up 0.84%), Hindalco Industries (up 0.74%) rose. National Aluminium Company (down 2.41%), NMDC (down 0.36%) and Hindustan Copper (down 0.23%) edged lower.
Copper edged lower in the global commodities market. High Grade Copper for December 2017 delivery was currently off 0.1% at $3.1405 per pound on the COMEX.
Telecom stocks saw mixed trend. Bharti Airtel (up 0.09%) and Idea Cellular (up 0.06%) rose. MTNL (down 0.51%), Tata Teleservices (Maharashtra) (down 0.87%) and Reliance Communications (down 0.67%) fell.
Shares of Bharti Infratel rose 0.03%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
GTPL Hathway rose 2.56% after the Reserve Bank of India notified after market hours yesterday, 7 August 2017, that the Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in GTPL Hathway has increased from 24% to 49% of its paid up capital.
CCL Products (India) rose 8.49% after the Reserve Bank of India notified after market hours yesterday, 7 August 2017, that the foreign investment limit for investment by Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) in CCL Products (India) has increased from 24% to 40% of its paid up capital.
Further, owing to the above increase in the above investment limit, it is notified that the aggregate shareholding by FIIs/FPIs in CCL Products (India) has gone below the prescribed FIIs/FPIs investment limit for the company. Hence, the restrictions placed on the purchase of shares of CCL Products (India) by FIIs/FPIs, are withdrawn with immediate effect.
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