Volatility struck bourses in morning trade as the key benchmark indices regained positive zone soon after erasing early gains to sink in negative zone. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 29.52 points or 0.09% at 33,602.74. The Nifty 50 index was up 6.25 points or 0.06% at 10,430.05. Both the Sensex and the Nifty trimmed gains after scaling record high in early trade. Telecom stocks saw mixed trend. Most capital goods rose.
Key benchmark indices drifted higher in early trade with both the Sensex and the Nifty scaling record high.
The S&P BSE Mid-Cap index was up 0.03%, underperfoming the Sensex. The S&P BSE Small-Cap index was up 0.55%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,307 shares rose and 849 shares fell. A total of 89 shares were unchanged.
Overseas, most Asian stocks were trading lower. Markets in Japan were closed for Culture Day. Activity in China's service sector expanded at a faster pace in October, a private gauge showed Friday, in contrast with official data showing a slower pace of growth. The Caixin China services purchasing managers' index rose to 51.2 in October from 50.6 in September, Caixin Media Co. and research firm Markit said. China's official nonmanufacturing PMI, which includes the construction sector, fell to 54.3 in October from 55.4 in September, the National Bureau of Statistics said on Tuesday.
In US, the Dow Jones Industrial Average closed at a record on Thursday, but the other main benchmarks saw muted moves, as investors parsed through tax reform details.
House Republicans released details of a highly-anticipated tax-reform plan although market moves were subdued. The corporate tax rate would be reduced to 20% from 35% under the plan, which also aims to lower the number of income tax brackets. Hopes for tax cuts have been credited for some market gains over the past year.
Trump announced that Jerome Powell, Federal Reserve Governor, would become the chairman of the Federal Reserve when current Chair Janet Yellen steps down at the end of her term in February. The move had been mostly expected by investors.
In Europe, the Bank of England (BoE) raised its key interest rate by a quarter-percentage point to 0.5%, meeting widely held expectations for the first rate increase to be enacted since July 2007. There remain considerable risks to the outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal, BoE said in a statement, referring to Britain's plan to exit the European Union, or Brexit.
Back home, telecom stocks saw mixed trend. Bharti Airtel (up 2.16%), Idea Cellular (up 2.06%) and Tata Teleservices (Maharashtra) (up 4.94%) gained. Reliance Communications (down 1.15%) and MTNL (down 0.86%) fell.
Shares of Bharti Infratel fell 0.37%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Most capital goods rose. GE T&D India (up 6.2%), Bharat Heavy Electricals (Bhel) (up 3.74%), L&T (up 0.98%), Siemens (up 0.12%) and Thermax (up 0.17%) rose. ABB India (down 0.23%), BEML (down 0.01%), Bharat Electronics (down 0.59%) and Punj Lloyd (down 0.44%) fell.
HEG was locked in 5% upper circuit at Rs 1,840.75 after the company reported turnaround Q2 September 2017 results after market hours yesterday, 2 November 2017. HEG reported net profit of Rs 113.66 crore in Q2 September 2017 crore as against net loss of Rs 14.09 crore in Q2 September 2016. Net sales jumped 111.1% to Rs 409.54 crore in Q2 September 2017 over Q2 September 2016.
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