Buying gained momentum as key indices hit fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 211.70 points or 0.63% at 33,838.67. The Nifty 50 index was up 64.85 points or 0.63% at 10,396.45. Global stocks and US index futures rose on hopes that a full blown trade war between the United States and China could be averted. Shares of public sector oil marketing companies (PSU OMCs) rose across the board.
After opening on a dull note, the market moved higher and hit fresh intraday high in morning trade. Indices turned range bound in mid-morning trade. Indices extended intraday gains and hit fresh intraday high in mid-afternoon trade.
The Sensex rose 216.07 points, or 0.64% at the day's high of 33,843.04 in mid-afternoon trade, its highest intraday level since 15 March 2018. The index fell 48.06 points, or 0.14% at the day's low of 33,578.91 in early trade. The Nifty rose 65.85 points, or 0.64% at the day's high of 10,397.45 in mid-afternoon trade, its highest intraday level since 15 March 2018. The index fell 3.10 points, or 0.03% at the day's low of 10,328.50 in early trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.25%. The BSE Small-Cap index was up 0.39%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,611 shares rose and 908 shares fell. A total of 136 shares were unchanged.
PSU OMCs were in demand. BPCL (up 3.89%), HPCL (up 3.81%) and Indian Oil Corporation (up 3.18%), edged higher.
Auto shares were mixed. Mahindra & Mahindra (up 2.09%), Maruti Suzuki India (up 0.67%), Hero MotoCorp (up 0.31%), Escorts (up 0.18%) and Eicher Motors (up 0.08%), edged higher. TVS Motor Company (down 0.02%), Bajaj Auto (down 0.11%) and Ashok Leyland (down 0.27%), edged lower.
Tata Motors fell 0.95% to Rs 360.40 after the company said that sales of its subsidiary Jaguar Land Rover dropped 7.8% to 83,732 units in March 2018 over March 2017. The announcement was made during trading hours today, 9 April 2018.
Jaguar sales dropped 12.7% to 24,300 units. Land Rover sales declined 5.7% to 59,432 units. Jaguar Land Rover reported retail sales of 614,309 vehicles for the financial year ended 31 March 2018, up 1.7% on the prior year. Retail sales for the financial year were up year-on-year in China (19.9%), North America (4.7%) and in Overseas markets (3.4%) but down in the UK (12.8%) and in Europe (5.3%). Felix Brautigam, Chief Commercial Officer, Jaguar Land Rover said that weaker market conditions in the UK and Europe, driven by lack of consumer confidence and lower demand for diesel, are impacting growth. Jaguar Land Rover is the UK's largest automotive manufacturer, built around two iconic British car brands: Land Rover, the world's leading manufacturer of premium allwheel-drive vehicles; and Jaguar, one of the world's premier luxury sports saloon and sports car marques.
Overseas, European shares rose as hopes that a full blown trade war between the United States and China could be averted. Stocks in Asia were trading higher as investors looked past the trade worries that fueled Friday's declines on Wall Street.
US officials on Sunday, 8 April 2018, reportedly noted that any penalties on Beijing are not imminent and there is ample time to work out a deal and step back from a possible trade war. President Donald Trump said in a tweet Sunday he expects China to lower trade barriers with the US acting reciprocally on taxes.
A bounce in US stock futures also boosted sentiment across Asian markets. Trading in US index futures indicated that the Dow could jump 192 points at the opening bell today, 9 April 2018.
Meanwhile, some media reported that US forces had struck at sites in Syria, presumably in retaliation for an alleged chemical attack on civilians there.
China has tightened restrictions on exports to North Korea of items with potential dual use in weapons of mass destruction and conventional arms. The ban on exports of potential dual-use items, including software, machinery and chemicals, is in line with UN Security Council resolution number 2375. That resolution was passed in September.
US stocks closed sharply lower on Friday, 6 April 2018, led by a selloff in industrials and financials, as investors continued to fret over an escalating China-US trade fight.
The selling pressure followed Federal Reserve Chairman Jerome Powell's speech in which he backed a patient approach to raising interest rates. The Fed chairman said going slow on rate hikes has also reduced the risk of an unforeseen blow to the economy that might have pushed the economy into recession.
Investors also digested a weaker-than-expected jobs report that showed that wage growth remains tepid. The US economy added just 103,000 new jobs in March. The unemployment rate was unchanged at 4.1%.
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