Indian Equity Market Indices Hit Intraday High

Key benchmark stock market indices extended early gains and hit fresh intraday high in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 291.23 points or 0.83% at 35,470.11. The Nifty 50 index was up 78.30 points or 0.73% at 10,762.95. 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 held firm at higher levels after opening with strong gains. The Sensex rose 295.02 points, or 0.84% at the days high of 35,473.90 in morning trade, its highest level since 4 June 2018. The index rose 99.50 points, or 0.28% at the days low of 35,278.38 in morning trade. The Nifty rose 85.20 points, or 0.80% at the days high of 10,769.85 in morning trade, its highest level since 4 June 2018. The index rose 37.95 points, or 0.36% at the days low of 10,722.60 in morning trade.

Among secondary barometers, the BSE Mid-Cap index was up 1.12%. The BSE Small-Cap index was up 1.64%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1583 shares rose and 423 shares fell. A total of 74 shares were unchanged.

Metal shares were in demand. Jindal Steel & Power (up 4.47%), Hindustan Copper (up 3.41%), Vedanta (up 2.96%), Steel Authority of India (up 2.91%), Tata Steel (up 2.07%), JSW Steel (up 1.90%), Hindalco Industries (up 1.84%), NMDC (up 1.75%), National Aluminium Company (up 1.26%) and Hindustan Zinc (up 0.22%), edged higher.

FMCG shares rose. Dabur India (up 1.45%), Bajaj Corp (up 1.10%), Jyothy Laboratories (up 1.07%), Hindustan Unilever (up 1.06%), Britannia Industries (up 0.45%), GlaxoSmithKline Consumer Healthcare (up 0.45%), Colgate Palmolive (India) (up 0.27%), Godrej Consumer Products (up 0.11%) and Procter & Gamble Hygiene & Health Care (up 0.03%), edged higher. Nestle India (down 0.13%), Marico (down 0.28%) and Tata Global Beverages (down 0.57%), edged lower.

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 Wednesdays 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. Outputor goods and services producedclimbed 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.