Key benchmark indices held firm and hovered in a narrow range in positive terrain in early afternoon trade as firmness in Asian stocks and good prospects of monsoon rains perked up sentiment. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 97.23 points or 0.31% at 31,286.54. The Nifty 50 index was up 28.75 points or 0.3% at 9,665.90.
After opening with small gains, key indices held firm after extending gains and hitting fresh intraday high in morning trade. Metal & mining stocks gained on bargain hunting after the recent losses.
Most interest rate sensitive realty stocks rose ahead of the Reserve Bank of India's monetary policy decision later in the day today, 7 June 2017. Metal & mining stocks gained on bargain hunting after the recent losses.
The S&P BSE Mid-Cap index rose 0.53%. The S&P BSE Small-Cap index advanced 0.81%. Both these indices outperformed the Sensex.
The breadth indicating overall health of the market was strong. On the BSE, 1,450 shares rose and 921 shares fell. A total of 117 shares were unchanged.
Metal & mining stocks gained on bargain hunting after the recent losses. JSW Steel (up 0.36%), Hindustan Copper (up 0.8%), Vedanta (up 2.14%), Hindalco Industries (up 0.66%), Jindal Steel & Power (up 0.8%), Tata Steel (up 0.2%), Steel Authority of India (Sail) (up 0.35%), National Aluminum Company (up 0.62%) and NMDC (up 0.53%) gained. Bhushan Steel (down 1.76%) and Hindustan Zinc (down 0.49%) declined.
The S&P BSE Metal index rose 0.71%, outperforming the Sensex. The index fell for the last five sessions.
Most interest rate sensitive realty stocks rose ahead of the Reserve Bank of India's monetary policy decision later in the day today, 7 June 2017. D B Realty (up 0.9%), Sobha (up 1.71%), Indiabulls Real Estate (up 1.64%), Unitech (up 0.19%), Godrej Properties (up 0.32%), and Oberoi Realty (up 1.36%) edged higher. NBCC (down 0.57%), Housing Development & Infrastructure (HDIL) (down 0.43%), DLF (down 0.11%) and Omaxe (down 0.05%) declined.
Cadila Healthcare jumped 8% after the company said it received final approval for Mesalamine delayed-release tablets from the US drug regulator. The announcement was made before trading hours today, 7 June 2017.
Cadila Healthcare informed that the US Food and Drug Administration (USFDA) has given final approval to market Mesalamine delayed-release tablets USP, I.2 g in the US market. Cadila Healthcare was the first to file an Abbreviated New Drug Application (ANDA) for a generic version of Lialda (mesalamine).
Lialda is indicated for the treatment of mild to moderate ulcerative colitis. Ulcerative colitis is a chronic inflammatory bowel disease that affects approximately 700,000 people in the United States. The generic version of Lialda (mesalamine) will be produced at Moraiya plant in Ahmedabad. The estimated brand sales for Mesalamine delayed-release tablets USP, 1.2 g is $1.145 billion as per IMS MAT April 2017.
Sical Logistics rose 2.42% after the company said that it has been awarded with a letter of acceptance by Mahanandi Coal Fields at a contracted value of Rs 289 crore.
The contract is for extraction of coal/coal measure strata by deploying surface miners on hiring basis, mechanical transfer of the same by pay loaders into tipping trucks and transportation from surface miner face to different destinations at Bharatpur for an extraction quantity of 24368779 cubic meters over a period of 1,095 days (three years). The announcement was made after market hours yesterday, 6 June 2017.
Aegis Logistics fell 1.41% after the company said that it has entered into a share subscription agreement with its subsidiary Aegis Gas (LPG) (AGPL) and AGPL's subsidiary Hindustan Aegis LPG (HALPG), and Itochu Petroleum Co., (Singapore) Pte. (Itochu), with respect to the subscription by Itochu to equity shares of HALPG representing 19.7% of the paid-up share capital of HALPG.
The company does not directly hold any shares in HALPG, Aegis Logistics said. However, AGPL is a wholly owned subsidiary of the company, and HALPG is a wholly owned subsidiary of AGPL, it said. Therefore, HALPG is a step-down subsidiary of the company, it added. The announcement was made after market hours yesterday, 6 June 2017.
Meanwhile, the second stage forecast of Southwest monsoon seasonal rainfall was issued by Indian Meteorological Department (IMD) in New Delhi yesterday, 6 June 2017. IMD has forecast that quantitatively, the monsoon seasonal rainfall for the country as a whole is likely to be 98% of the long period average (LPA) with an error of 4%. The forecast was 2 percentage points higher than the April forecast. The monsoon delivers about 70% of India's annual rainfall, critical for the farm sector. In April, the IMD had forecast this year's monsoon rains at 96% of the 50-year average of 89 centimetres.
Investors will closely watch the Reserve Bank of India's (RBI) monetary policy review scheduled today, 7 June 2017. The central bank is widely expected to keep policy rates unchanged.
Overseas, most Asian stocks rose although investors remained noticeably risk averse ahead of several major political and economic events later this week.
US stocks closed lower yesterday, 6 June 2017 for a second session as investors exercised caution ahead of the UK elections and political uncertainties over former Federal Bureau of Investigation director James Comey's testimony this week.
British Prime Minister Theresa May looks on course to increase her parliamentary majority in Thursday's election, an opinion poll showed, shortly after another survey suggested the race with the opposition Labour Party was neck and neck. European Central Bank policy meeting is also due tomorrow, 8 June 2017.
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