Key benchmark indices advanced in early trade on strong global cues. At 9:18 IST, the barometer index, the S&P BSE Sensex rose 156.85 points or 0.5% at 31,294.44. The Nifty 50 index advanced 49.40 points or 0.51% at 9,665.50. Both the Sensex, and the Nifty, hit record high.
The S&P BSE Mid-Cap index rose 0.58%. The S&P BSE Small-Cap index advanced 0.57%. Both these indices outperformed the Sensex.
Overseas, Asian stocks traded higher tracking overnight gains on Wall Street. US equities closed higher yesterday, 1 June 2017, as Wall Street got ready for the release of the monthly jobs report. The US government's nonfarm payrolls report is set for release today, 2 June 2017.
Meanwhile, data released by the private payroll firm ADP yesterday, 1 June 2017 showed that private US companies hired at a blistering pace in May, accelerating from the pause in April. Non-farm private employment surged 253,000 in May.
An improving labor market will likely support investors' expectations that the Federal Reserve will raise interest rates further in the coming months.
Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 970 shares rose and 257 shares declined. A total of 51 shares were unchanged.
Cipla rose 0.96% after the company announced that the closing conditions in relation to divestment of entire stake held by company's wholly owned subsidiary Inyanga Trading 386 Proprietary in Cipla Vet Proprietary (Cipla Vet), South Africa and Cipla Agrimed Proprietary (Cipla Agrimed), South Africa have been fulfilled. Consequently, Cipla Vet and Cipla Agrimed have ceased to be subsidiaries of Inyanga Trading 386 Proprietary with effect from 1 June 2017. The announcement was made after market hours yesterday, 1 June 2017.
HDFC was up 0.46% after the company announced that its wholly owned subsidiary HDFC Investments has subscribed to 15% of the share capital of First Housing Finance (Tanzania) for $1.5 million. First Housing Finance (Tanzania) is the first housing finance company to be set up in Tanzania. It will commence operations shortly. The announcement was made after market hours yesterday, 1 June 2017.
Coal India rose 0.53%. The company announced that the company and its subsidiaries achieved 92% of targeted production at 40.74 million tonnes in May 2017. The company achieved 91% of targeted offtake at 46.41 million tonnes in May 2017. The announcement was made after market hours yesterday, 1 June 2017.
Hero MotoCorp (HMCL) advanced 1.71% after the company said its total two-wheeler sales grew 8.7% to 6.33 lakh units in May 2017 over May 2016. The announcement was made after market hours yesterday, 1 June 2017.
With monsoon already hitting some parts of the country, and forecast of normal rains this year, the industry is expecting a boost in demand and consumption in the rural markets. Having lined up a slew of new launches across various segments, the company is confident of maintaining the growth trajectory in the coming months.
Meanwhile, HMCL commenced commercial production yesterday, 1 June 2017, in the manufacturing facility at its subsidiary HMCL Niloy Bangladesh. This plant, located at Jessore in Bangladesh, has an installed capacity of 1.50 lakh vehicles per annum.
Bharti Airtel rose 1.29% after the company announced that it has received the approval of the Securities and Exchange Board of India (Sebi), BSE and National Stock Exchange of India (NSE) for the proposed Scheme of merger between Airtel and Telenor (India) Communications. The announcement was made after market hours yesterday, 1 June 2017.
Bharti Airtel further stated that Telenor India and Airtel have filed the joint company application before the New Delhi Bench of the National Company Law Tribunal for approval of the proposed Scheme of merger. The merger is inter alia subject to other statutory approvals including from the Competition Commission of India.
Airtel had earlier announced (in February 2017) that it had entered into a definitive agreement with Telenor South Asia Investments Pte Ltd (Telenor). As part Of the Scheme, Airtel will acquire Telenor India's running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles represent a high population concentration and therefore offer a high potential for growth.
The proposed acquisition will include transfer of all of Telenor India's assets and customers, further augmenting Airtel's overall customer base and network. It will also enable Airtel to further bolster its strong spectrum foot-print in these seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band.
Among other global news, US President Donald Trump announced yesterday, 1 June 2017 that he will withdraw the US from the Paris climate pact, saying it favours other nations at the expense of American workers, while vowing to pursue a better deal.
The move reportedly drew an immediate condemnation from the leaders of France, Germany and Italy, who issued a statement insisting that the agreement was irreversible and cannot be renegotiated.
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