After opening higher, key benchmark indices hit fresh intraday high in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was up 131.96 points or 0.44% at 30,433.60. The Nifty 50 index was up 40.70 points or 0.43% at 9,401.25. Positive leads from Asian markets and overnight gains on the Wall Street boosted investors sentiment. IT shares were in demand. Most metal shares rose.
The Sensex rose 158.10 points, or 0.52% at the day's high of 30,459.74 in morning trade. The index rose 50.62 points, or 0.17% at the day's low of 30,352.26 in early trade. The Nifty rose 49.75 points, or 0.53% at the day's high of 9,410.30 in morning trade. The index rose 18.65 points, or 0.20% at the day's low of 9,379.20 in early trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.44%, matching the Sensex's rise in percentage terms. The BSE Small-Cap index was up 0.79%, outperforming the Sensex.
The broad market depicted strength. There were two gainers against every loser on BSE. 1,365 shares rose and 680 shares fell. A total of 100 shares were unchanged.
Most metal shares rose. National Aluminium Company (up 1.38%), Jindal Steel & Power (up 0.99%), Hindustan Copper (up 0.96%), JSW Steel (up 0.87%), NMDC (up 0.65%), Bhushan Steel (up 0.50%), Hindalco Industries (up 0.32%), Tata Steel (up 0.13%) and Vedanta (up 0.13%), edged higher. Steel Authority of India (down 0.09%) and Hindustan Zinc (down 1.27%), edged lower.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for July 2017 delivery was currently unchanged at $2.5835 per pound on the COMEX.
IT shares were in demand. TCS (up 1.34%), Oracle Financial Services Software (up 1.05%), Infosys (up 1.02%), Hexaware Technologies (up 0.96%), MphasiS (up 0.87%), MindTree (up 0.76%), Wipro (up 0.58%), Tech Mahindra (up 0.38%) and HCL Technologies (up 0.16%), edged higher. Persistent Systems was down 0.35%.
Gujarat Gas fell was down 0.90% after net profit fell 53.77% to Rs 33.14 crore on 1.75% rise in total income to Rs 1444.82 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 May 2017.
Videocon Industries was locked at 10% lower circuit at Rs 52.55, with the stock extending recent sharp sell-off triggered by the company's debt woes. The recent sell-off has been triggered by media reports of escalating debt woes of the company. As per reports, Central Bank of India declared the company as a non-performing asset (NPA) in Q1 June 2017. Central Bank of India has one of the highest exposures to Videocon at Rs 2700 crore, reports added. Other banks are likely to soon follow suit in declaring the account as a bad loan or an NPA. Dena Bank has recently announced that it had classified Videocon's loan amounting to Rs 520 crore as a NPA. This has resulted into some negative publicity of the company and, accordingly, impacted its stock price.
Overseas, Asian shares rose after the US Federal Reserve signalled a cautious approach to future rate hikes and the reduction of its $4.5 trillion of bond holdings. Investors also looked ahead to an OPEC gathering widely expected to extend output cuts.
US stocks closed higher for a fifth-straight day yesterday, 24 May 2017, buoyed by the minutes of the Federal Reserve's May meeting. The S&P 500 rose 5.97 points, or 0.3%, to close at 2,404.39. The Dow Jones Industrial Average also rose for a fifth straight day, gaining 74.51 points, or 0.4%, to finish at 21,012.42, just 0.5% below its record close set on 1 March 2017. The Nasdaq Composite Index climbed 24.31 points, or 0.4%, to end at 6,163.02.
Minutes from the Fed's last policy meeting showed policymakers agreed they should hold off on raising interest rates until it was clear a recent US economic slowdown was temporary. The minutes also showed that policymakers favored a gradual reduction in its massive balance sheet. Fed staff proposed that the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially setting it at a low level and raising it every three months.
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