Key benchmark indices pared gains after hitting fresh intraday high in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 117.31 points or 0.45% at 26,466.41. The Nifty 50 index was up 36.85 points or 0.45% at 8,165.60. Positive leads from Asian markets and overnight rally on the Wall Street boosted investors sentiment in the domestic market.
The Sensex rose 153.33 points, or 0.58% at the day's high of 26,502.43 in early afternoon trade, its highest intraday level since 1 December 2016. The index rose 44.89 points, or 0.17% at the day's low of 26,393.99 in early trade. The Nifty rose 47.90 points, or 0.59% at the day's high of 8,176.65 in early afternoon trade, its highest intraday level since 1 December 2016. The index rose 19.75 points, or 0.24% at the day's low of 8,148.50 in morning trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,600 shares rose and 759 shares fell. A total of 131 shares were unchanged. The BSE Mid-Cap index was currently up 0.72%. The BSE Small-Cap index was currently up 0.77%. Both these indices outperformed the Sensex.
Overseas, Asian shares were trading higher as investors judged the selloff after Italy's referendum was overdone, with robust US economic data also helping sentiment. In US, the Dow Jones Industrial Average finished at a record yesterday, 5 December 2016, as solid economic data offset concerns about Europe's stability in the wake of a rejection of Italy's vote on Sunday, 4 December 2016, to reform existing constitutional rules. The broader stock market rose after a survey showed that the services side of the economy grew at its fastest pace in November in a year. The Institute of Supply Management non-manufacturing index climbed to 57.2 last month. Any reading over 50 indicates economic expansion.
Back home, most IT shares edged higher. MindTree (up 2.48%), Wipro (up 1.27%), Infosys (up 1.13%), Persistent Systems (up 0.83%), Tech Mahindra (up 0.79%), Hexaware Technologies (up 0.59%), HCL Technologies (up 0.44%) and TCS (up 0.37%), edged higher. MphasiS (down 0.10%) and Oracle Financial Services Software (down 0.61%), edged lower.
Power generation stocks were in demand. Torrent Power (up 3.87%), Adani Power (up 3.06%), JSW Energy (up 3.01%), Tata Power (up 2.25%), CESC (up 2.03%), Jaiprakash Power Ventures (up 1.96%), Reliance Power (up 1.57%), NHPC (up 1.47%), NTPC (up 1.36%), Reliance Infrastructure (up 0.78%) and GMR Infrastructure (up 0.42%), edged higher.
State-run Coal India was up 0.59%. State-run Power Grid Corporation of India was down 0.68%.
Inox Wind gained 2.21% after the company bagged an order for a 50 megawatts wind power project to be deployed in Gujarat from SJVN, category-I Mini Ratna, central public sector enterprise and hydroelectric power major. The project is scheduled to be commissioned by November 2017 and will be executed on turnkey basis. The announcement was made during market hours today, 6 December 2016.
On macro front, a two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is scheduled today, 6 December 2016 and tomorrow, 7 December 2016. It will be interesting to watch RBI's monetary policy stance this time in a scenario of government's recent historic move of demonetization of higher denomination notes and amid easing consumer inflation. RBI had cut policy rates by 25 basis points in its last meet in October.
Meanwhile, Chief minister of Tamil Nadu, J Jayalalithaa, died yesterday, 5 December 2016, after undergoing treatment at Apollo Hospitals in Chennai. She was 68.
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