Key benchmark indices held firm in mid-morning trade as firmness in Asian stocks and good prospects of monsoon rains lifted sentiment. At 11:24 IST, the barometer index, the S&P BSE Sensex was up 127.34 points or 0.41% at 31,317.90. The Nifty 50 index was up 34.10 points or 0.35% at 9,671.25.
After opening with small gains, key indices held firm after extending gains and hitting fresh intraday high in morning trade.
Pharma stocks rose on bargain hunting after the recent losses. Interest rate sensitive auto stocks were mixed ahead of the Reserve Bank of India's monetary policy review later in the day today, 7 June 2017.
The S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index advanced 0.9%. Both these indices outperformed the Sensex.
The breadth indicating overall health of the market was strong. On the BSE, 1,468 shares rose and 820 shares fell. A total of 117 shares were unchanged.
Interest rate sensitive auto stocks were mixed ahead of the Reserve Bank of India's monetary policy review later in the day today, 7 June 2017. Mahindra & Mahindra (M&M) (up 2.29%), Ashok Leyland (up 0.87%), Hero MotoCorp (up 0.75%), and Eicher Motors (up 0.44%) gained. Bajaj Auto (down 0.02%), and TVS Motor Company (down 0.04%) declined.
Maruti Suzuki India rose 0.92% after the company said that production rose 16.79% to 1.51 lakh units in May 2017 over May 2016. The announcement was made during market hours today, 7 June 2017.
Tata Motors declined 0.75% after Jaguar Land Rover retail sales rose 1% to 45,487 vehicles in May 2017 over May 2016 with continued strong demand for the Jaguar F-PACE, since sales began 12 months ago, and solid sales growth of the long wheel base Jaguar XFL from our China joint venture. The announcement was made during market hours today, 7 June 2017.
Jaguar hit record May retails with 13,613 vehicles sold, up 28% on the previous year with continued solid demand for the F-PACE and growing sales of the long wheel base XFL from our China joint venture. Land Rover retailed 31,874 vehicles in May, down 7.1% on the same month last year, as the sales of the all new Discovery (now on sale in the UK, Europe and China) and solid sales of the Range Rover were more than offset by the impact of vehicle excise duty rates in the UK from 1 April 2017 and challenging conditions in overseas markets such as Russia, Brazil and South Africa.
Pharma stocks rose on bargain hunting after the recent losses. Sun Pharmaceutical Industries (up 1.54%), Aurobindo Pharma (up 1.25%), Cipla (up 0.97%), Lupin (up 0.83%), Wockhardt (up 1.64%), Dr Reddy's Laboratories (up 0.3%), Cadila Healthcare (up 7.87%), Divi's Laboratories (up 2.42%), and Glenmark Pharmaceuticals (up 1.36%) gained.
Vivimed Labs jumped 5.76% after the company said its UQUIFA's facility received inspection report with zero 483 observations from the US Food and Drug Administration. The announcement was made after market hours yesterday, 6 June 2017.
Vivimed Labs said that the company's API manufacturing facility located in Sant Celoni, Spain was recently inspected by the US Food and Drug Administration (USFDA) issued report with zero 483 observations.
Unichem Laboratories rose 2.09% after the company said that its formulations manufacturing facility at Ghaziabad has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA). This receipt indicates the successful closure of the inspection and the queries raised during the audit (Form 483). The inspection has now been closed by the USFDA. The inspection was carried out between 24 Feb 2017 to 3 March 2017. The announcement was made during trading hours today, 7 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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