Key benchmark indices extended early gains and hit fresh intraday high in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 193.95 points or 0.61% at 31,785.98. The Nifty 50 index was up 66.85 points or 0.68% at 9,955.55. Metal and mining stocks gained. Cement stocks rose. Positive Asian stocks boosted sentiment on the domestic bourses.
Domestic stocks edged higher in early trade on positive Asian stocks.
The S&P BSE Mid-Cap index was up 0.76%. The S&P BSE Small-Cap index was up 1.07%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than three gainers against every loser on BSE. 1,608 shares rose and 441 shares fell. A total of 75 shares were unchanged.
Overseas, Asian stocks followed their US counterparts higher after a slew of data and comments from Federal Reserve officials helped ratchet up bets that the US economy is strong enough to withstand higher interest rates. China and South Korea markets remain closed.
US stock-market indexes posted solid gains and closed at all-time highs yesterday, 5 October 2017 fueled by gains in technology stocks including Netflix, Microsoft and Amazon.com. After a House vote, the Senate approved a budget bill yesterday, 5 October 2017. Republicans passed tax cuts through what is known as budget reconciliation, which requires just a simple majority in the Senate. Republicans currently control the Senate with 52 seats.
Meanwhile, economic data released yesterday, 5 October 2017 pointed to underlying strength in the economy despite weather-related disruptions, with the trade deficit narrowing in August and jobless claims falling more than expected last week. The US trade deficit dropped 2.7% in August to $42.4 billion from $43.6 billion in July. Separately, initial jobless claims, a tool to measure US layoffs, fell by 12,000 to 260,000 at the end of September. The number of people already collecting unemployment benefits, known as continuing claims, fell slightly to 1.94 million.
Back home, NTPC (up 2.47%), Mahindra & Mahindra (up 1.27%) and Coal India (up 1.21%) edged higher from the Sensex pack.
Metal and mining stocks gained on renewed buying. Vedanta (up 1.93%), JSW Steel (up 1.97%), Steel Authority of India (Sail) (up 2.31%), National Aluminium Company (up 3.27%), Hindustan Zinc (up 1.2%), Jindal Steel & Power (up 2.2%), Hindalco Industries (up 2.3%), NMDC (up 1.76%) and Hindustan Copper (up 1.31%) edged higher.
Tata Steel gained 2.73% after the company announced production and sales numbers for Q2 September 2017. The company's sales rose 15.73% to 6.4 million tonnes in Q2 September 2017 over Q2 September 2016. Production grew by 4.71% to 6.22 million tonnes in Q2 September 2017 over Q2 September 2016. The announcement was made after market hours yesterday, 5 October 2017.
Copper edged lower in the global commodities market. High Grade Copper for December 2017 delivery was currently off 0.07% at $3.0445 per pound on the COMEX.
Cement stocks gained on hopes demand will pick up as construction activity will be in full swing following withdrawal of southwest monsoon rains.
Ambuja Cements (up 1.15%), ACC (up 1.97%), UltraTech Cement (up 1.07%) and Shree Cement (up 0.6%) gained.
Grasim Industries was up 0.33%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
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