A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, was trading marginally lower while the Nifty 50 index was trading a tad higher. At 12:23 IST, the barometer index, the S&P BSE Sensex, was off 5.21 points or 0.02% at 31,656.76. The Nifty 50 index was up 4.95 points or 0.05% at 9,921.15. Shares from metal & mining and capital goods sectors were in demand.
Domestic stocks nudged higher in early trade on positive Asian stocks. Key benchmark indices trimmed gains in morning trade. Stocks hovered in a small range in positive zone in mid-morning trade amid a divergent trend among various index constituents.
The S&P BSE Mid-Cap index was up 0.71%. The S&P BSE Small-Cap index was up 0.64%. Both these indices outperformed the Sensex.
The breadth indicating the overall health of the market was strong. On BSE, 1,396 shares gained and 933 shares fell. A total of 132 shares were unchanged.
Metal and mining stocks were in demand on fresh buying. National Aluminium Company (up 6.34%), Hindustan Zinc (up 0.52%), Jindal Steel & Power (up 0.35%), Hindalco Industries (up 1.26%), NMDC (up 0.11%), Hindustan Copper (up 0.54%), Vedanta (up 1.18%), JSW Steel (up 1.3%), Tata Steel (rose 0.21%) and Steel Authority of India (Sail) (up 1.53%) edged higher.
Copper edged lower in the global commodities market. High Grade Copper for December 2017 delivery was currently off 0.87% at $3.124 per pound on the COMEX.
Capital goods stocks edged higher. ABB India (up 1.46%), BEML (up 3.06%), Bharat Electronics (up 0.98%), L&T (up 0.53%) and Thermax (up 0.35%) rose. Bharat Heavy Electricals (Bhel) (down 0.15%) and Siemens (down 0.27%) fell.
Punj Lloyd rose 16.19% on reports that a joint venture between the company and Varaha Infrastructure has won a Rs 1177-crore road project in Myanmar from the National Highways Authority of India (NHAI). The project will be based on engineering, procurement and construction (EPC) model.
Under the project, the company will be required to build a road stretch of nearly 120 km within 36 months and the job includes construction of 3 major and 2 minor bridges. The company is also supposed to maintain the project for five years. The project is being funded by the Ministry of External Affairs and the NHAI will be the implementing agency, reports added.
Nestle India rose 1.31% on reports the company is planning to introduce healthier food options. According to reports, Nestle India is focusing on supporting home cooking with healthier options by introducing a few initiatives such as simplifying ingredients, reducing sodium and increasing micronutrient fortification among other.
Arshiya rose 1.52% to Rs 67, with the stock recovering on bargain hunting after a recent slide. Shares of Arshiya had fallen 8.14% in the preceding five trading sessions to settle at Rs 66 yesterday, 6 September 2017, from its close of Rs 71.85 on 30 August 2017.
Overseas, Asian stocks were trading higher, tracking overnight US gains following a deal to extend the federal government's borrowing limit for three months. US stock benchmarks closed slightly higher yesterday, 6 September 2017 after congressional leaders and President Donald Trump agreed to extend the debt limit deadline and fund the government through mid-December.
In US economic data, the trade deficit rose slightly in July, keeping the US on track to post a larger gap in 2017 than in 2016. The deficit edged up to $43.7 billion in July from $43.5 billion in June. A reading on services activity, meanwhile, came in better than expected, providing an added lift to the outlook for the health of the US economy. ISM services were at 55.3 in August, compared with 53.9 in the prior period. A reading of at least 50 indicates expansion.
The European Central Bank holds a policy meeting today, 7 September 2017 and investors are keen to see whether it will send a message regarding the timing of an exit from its ultra-loose monetary policy.
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