The S&P BSE Sensex hovered close to its intraday high while Nifty 50 index hit fresh intraday high in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 309.21 points or 1% at 31,230.82. The Nifty 50 index was up 92.45 points or 0.97% at 9,613.35. Nifty hit more-than one-week high. The sentiment was boosted after the biggest tax reform, the Goods and Services Tax came into force from 1 July 2017. The gains were also supported by a sharp jump in index heavyweight ITC.
Trading for July started on a buoyant note, with indices witnessing a gap-up opening. Stocks regained strength after trimming initial spurt in morning trade.
The S&P BSE Mid-Cap index rose 0.93%, underperforming the Sensex. The S&P BSE Small-Cap index gained 1.05%, outperforming the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,712 shares rose and 658 shares fell. A total of 135 shares were unchanged.
The Sensex gained 336.72 points or 1.08% at the day's high of 31,258.33 in early trade, its highest level since 27 June 2017. The index rose 95.50 points or 0.3% at the day's low of 31,017.11 at the onset of the session. The Nifty spurted 97.10 points or 1.01% at the day's high of 9,618 in early afternoon trade, its highest level since 23 June 2017. The index gained 22.65 points or 0.23% at the day's low of 9,543.55 at the onset of the session.
IT stocks were mixed. Tech Mahindra (down 0.16%), HCL Technologies (down 1.31%), and Wipro (down 1.57%) declined. TCS rose 0.09%.
Infosys rose 0.7% after the company announced that it has signed on 29 June 2017, an agreement for divestment of its entire investment in Cloudyn for a total consideration of approximately $4.4 million.
The divestment is due to Microsoft signing a definitive agreement for the acquisition of Cloudyn. The announcement was made after market hours on Friday, 30 June 2017. Infosys on 3 August 2016 had announced minority investment in Cloudyn Software.
Most capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.15%), ABB India (up 0.06%), Bharat Electronics (up 0.15%), L&T (up 0.33%), and Siemens (up 0.4%) gained. Havells India (down 0.26%) and Thermax (down 0.75%) declined.
NBCC (India) rose 2.4% after the company said and Rail Development Authority, a statutory authority under the Ministry of Railways and the company have signed a Memorandum of Understanding (MoU) for re-development of 10 railway stations i.e. Tirupati, Pudducherry, Eranakulam, Nellore, Madgaon, Thane, Lucknow, Kota, Gomati Nagar (Lucknow) and Sarai Rohilla (Delhi).
The re-development of railway station would be integrated with smart city features. The announcement was made after market hours on Friday, 30 June 2017.
On macroeconomic data front, Markit Economics said during market hours today, 3 July 2017 that Purchasing Managers' Index (PMI) data highlighted a slowdown in growth across India's manufacturing sector during June. A softer rise in factory new orders resulted in weaker growth of production, with rates of expansion at four-month lows in both cases. Down from 51.6 in May to a four-month low of 50.9 in June, the Nikkei India Manufacturing PMI pointed to a slight and weaker improvement in the health of the sector.
Meanwhile, the output of eight core infrastructure industries, comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP), improved 3.6% in May 2017. The cumulative output of eight core infrastructure industries moved up 3.2% in April-May 2017-18. The data was announced after market hours on Friday, 30 June 2017.
The Goods and Services Tax came into force from 1 July 2017, amid a historic midnight session in the Central Hall of Parliament on 30 June 2017. President Pranab Mukherjee, Prime Minister Narendra Modi, and Finance Minister Arun Jaitley addressed the gathering, before the President and the Prime Minister pressed a button to mark the launch of GST. The biggest tax reform since independence - GST - will pave the way for realization of the goal of One Nation - One Tax - One Market.
Overseas, Asian stocks were mixed as the second half of the year kicked off, tracking mixed signals from US markets. US stocks closed mixed on Friday, 30 June 2017.
On macro economic data front, a private gauge of China's factory activity rebounded in June to show an expansion, indicating an improvement in the manufacturing sector that tallied with official data released last week. The Caixin China manufacturing purchasing managers' index rose to 50.4 in June from 49.6 in May, showing a rise in activity, Caixin Media Co. and research firm Markit said. The 50 level separates an expansion in manufacturing activity from a contraction.
Japanese manufacturing activity expanded at a slightly slower pace in June. The final June Markit/Nikkei Japan Manufacturing PMI was 52.4, higher than a preliminary reading of 52.0 but still below a final 53.1 in May.
Japan's business confidence among the nation's large manufacturers strengthened to its highest level in more than three years in the second quarter, according to a central bank survey. The main index measuring large manufacturers' confidence rose to plus 17 in the April-June period from plus 12 previously, according to the Bank of Japan's quarterly tankan survey.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
