Trading for the day began on positive note as the key benchmark indices drifted higher in early trade on buying demand in index pivotals. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 131.67 points or 0.37% at 36,037.10. The Nifty 50 index was up 42.15 points or 0.39% at 10,848.80. The Sensex regained the psychological 36,000 level in opening trade.
Trading could be volatile as traders roll over positions in the F&O segment from the near month February 2019 series to March 2019 series. The February 2019 F&O contracts expire today, 28 February 2019.
On the economic front, the government will announce data on infrastructure output for January today, 28 February 2019. The government will also announce data on fourth quarter gross domestic product (GDP) today, 28 February 2019. The Indian economy advanced 7.1% year-on-year in the third quarter of 2018, well below 8.2% in the previous period.
The S&P BSE Mid-Cap index was up 0.46%. The S&P BSE Small-Cap index was up 0.41%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 697 shares rose and 235 shares fell. A total of 37 shares were unchanged.
Overseas, Asian stocks were trading lower on Thursday after cautious comments from US Trade Representative Robert Lighthizer dented some of the recent optimism towards China-US trade relations. US President Donald Trump is holding a high-stakes summit with North Korean leader Kim Jong Un in the Vietnamese capital of Hanoi.
U.S. stocks bounced off intraday lows but still closed mostly lower Wednesday as investors focused on separate congressional testimonies from U.S. Trade Representative Robert Lighthizer on U.S.-China trade negotiations and a second day of Congressional hearings featuring Federal Reserve Chair Jay Powell.
Powell testified in front of the House, a day after he affirmed the central bank's wait-and-see approach to rate increases, citing slower global growth and its effect on the U.S. Lighthizer appeared before the House Ways and Means Committee on U.S.-China trade to provide more insight into the progress of negotiations between the world's two largest economies. He also said the U.S. plans to officially abandon an increase in tariffs on $200 billion of Chinese goods to 25%, from 10% currently.
In Europe, investors have been keeping tabs on Britain's tumultuous exit from the European Union with a March 29 deadline looming. British Prime Minister Theresa May on Tuesday said she would look to delay Brexit if a departure deal isn't agreed upon.
Back home, Wipro fell 0.71%. Wipro and Alight Solutions, a leader in technology-enabled health, wealth and Human Capital Management (HCM) solutions, have agreed to expand their relationship by signing a definitive agreement to divest Wipro's Workday and Cornerstone OnDemand business to Alight for cash consideration of up to $110 million, of which $100 million would be payable at closing and the balance, $10 million, would be a deferred consideration payable at the end of 12 months based on the achievement of performance targets. The announcement was made after market hours yesterday, 27 February 2019.
Tata Metaliks rose 3.45%. Tata Metaliks said its board reviewed and discussed the opportunities for growth through capacity expansion at its existing plant in Kharagpur and consequent funding options. The board approved capacity expansion of DI pipe capacity by 2 lakh tonne per annum (LTPA) and hot metal capacity by 0.7 LTPA. The capacity will be expanded by March 2022 with an investment of Rs 555 crore. Further, the board also approved issuing 29 lakh equity shares and 36 lakh convertible warrants to promoter, Tata Steel, on preferential basis. The proposed funding will help in funding the expansion project and also strengthen the balance sheet, the company said. The announcement was made after market hours yesterday, 27 February 2019.
Quick Heal Technologies jumped 5.67%. Quick Heal Technologies said that its board will meet on 5 March 2019, to consider a proposal for buyback fully paid up equity shares of the company. The announcement was made after market hours yesterday, 27 February 2019.
Varroc Engineering gained 3.41%. Varroc Engineering announced that phase I of plant set-up by its wholly owned step down subsidiary, Varroc Lighting Systems S.A. Morocco, has commenced commercial operations from 26 February 2019. The said plant will manufacture and supply automotive lighting parts. The announcement was made after market hours yesterday, 27 February 2019.
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