Market rises further on broad-based gains
by Admin |07/06/2018
The market further extended gains and hit fresh intraday high in mid-morning trade, backed by strength in IT and pharmaceutical shares. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 317.69 points or 0.90% at 35,496.57. The Nifty 50 index was up 94 points or 0.88% at 10,778.65. Positive leads from Asian markets and overnight rally on the Wall Street boosted sentiment. Sustained buying by domestic institutional investors also supported shares.
The indices hit fresh intraday high in mid-morning trade after opening with strong gains. The Sensex rose 347.70 points, or 0.99% at the day's high of 35,526.58 in mid-morning trade, its highest level since 4 June 2018. The index rose 99.50 points, or 0.28% at the day's low of 35,278.38 in morning trade. The Nifty rose 102 points, or 0.95% at the day's high of 10,786.65 in mid-morning trade, its highest level since 16 May 2018. The index rose 37.95 points, or 0.36% at the day's low of 10,722.60 in morning trade.
Among secondary barometers, the BSE Mid-Cap index was up 1.19%. The BSE Small-Cap index was up 1.86%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1786 shares rose and 515 shares fell. A total of 86 shares were unchanged.
Most IT shares moved higher. Infosys (up 1.33%), HCL Technologies (up 1.26%), MphasiS (up 1.12%), Wipro (up 0.96%), TCS (up 0.74%), MindTree (up 0.34%), Persistent Systems (up 0.27%) and Oracle Financial Services Software (up 0.12%), edged higher. Hexaware Technologies (down 0.54%) and Tech Mahindra (down 0.7%), edged lower.
HCL Infosystems was up 1.96%. Apple India said that the distribution agreement for iPhone and other Apple products with HCL Infosystems will end on 30 March 2019. The announcement was made during market hours yesterday, 6 June 2018.
Majesco was up 5.73%. The company announced that a new start-up selected Majesco Core Suite for P&C platform on the Majesco Cloudlnsurer platform to support their market launch and growth strategies in a SaaS model. The announcement was made during market hours yesterday, 6 June 2018.
Pharmaceutical shares were in demand. IPCA Laboratories (up 2.64%), Wockhardt (up 1.64%), Divi's Laboratories (up 1.52%), GlaxoSmithKline Pharmaceuticals (up 1.46%), Cadila Healthcare (up 1.30%), Piramal Enterprises (up 0.97%), Alkem Laboratories (up 0.91%), Aurobindo Pharma (up 0.91%), Dr Reddy's Laboratories (up 0.73%), Glenmark Pharmaceuticals (up 0.57%), Sun Pharmaceutical Industries (up 0.56%), Lupin (up 0.36%) and Cipla (up 0.20%), edged higher. Strides Shasun was down 0.31%.
Overseas, Asian shares rose following overnight gains on Wall Street, which saw the Dow Jones industrial average close above 25,000.
In US, the Dow Jones Industrial Average recorded its best daily gain since mid April as a rally in bank shares amplified a broad-market run-up that has been supported by gains in internet and technology shares. Market participants attributed Wednesday's rally to rising government bond rates. Higher rates tend to benefit the business of financials.
A rise in the yield of the benchmark 10-year Treasury note was supported by remarks from European Central Bank (ECB) senior officials, which showed the central bank remained on track to debate the timetable for ending its asset purchases soon.
Underlying strength in the euro area economy was making ECB confident that inflation will move toward target. The institution would next week discuss how it will wind down its 30 billion euro (about $35 billion) monthly-purchase program.
On the data front, the US trade deficit shrank 2.1% in April and tumbled to a seven-month low. Meanwhile, the productivity of American businesses rose at a revised 0.4% annual pace in the first quarter instead of 0.7% as originally reported. Output—or goods and services produced—climbed 2.7% instead of 2.8%, while unit-labor costs, or how much it costs to make each product, rose by 2.9%, a bit higher than the preliminary 2.7% estimate.