The market pared gains in mid-morning trade as profit selling emerged at higher levels. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 85.79 points or 0.25% at 33,874.33. The Nifty 50 index was up 26.60 points or 0.26% at 10,405.95. Key benchmark indices managed to trade higher while the broader market witnessed selling pressure.
The market opened higher and hit fresh intraday high in morning trade. Indices pared gains in mid-morning trade as profit selling emerged at higher levels. The Sensex rose 161.44 points, or 0.48% at the day's high of 33,949.98 in morning trade, its highest intraday level since 13 March 2018. The index rose 24.76 points, or 0.07% at the day's low of 33,813.30 in mid-morning trade. The Nifty rose 45.50 points, or 0.44% at the day's high of 10,424.85 in morning trade, its highest intraday level since 13 March 2018. The index rose 2.15 points, or 0.02% at the day's low of 10,381.50 in mid-morning trade.
Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index was down 0.06%. The BSE Small-Cap index was down 0.08%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. On BSE, 1,217 shares fell and 1,105 shares rose. A total of 98 shares were unchanged.
Axis Bank was up 3.77% at Rs 537.45. The bank's managing director and CEO Shikha Sharma wanted her new term to be reduced to seven months from three-year tenure that has been approved by the bank's board. The Axis Bank board has accepted her request for a shorter seven-month term (from 1 June to 31 December 2018), subject to the approval of the Reserve Bank of India (RBI). The announcement was made after market hours yesterday, 9 April 2018.
Most IT shares rose. MphasiS (up 3.45%), MindTree (up 1.58%), Hexaware Technologies (up 1.21%), Tech Mahindra (up 1.03%), Persistent Systems (up 0.83%), Infosys (up 0.72%), TCS (up 0.68%) and HCL Technologies (up 0.16%), edged higher. Oracle Financial Services Software was down 0.04%.
IT major Wipro was down 0.91%. The company announced after market hours yesterday, 9 April 2018, that its fourth-quarter revenue and profitability would be hit by the insolvency proceedings of one of its telecom clients in India. The company said it has been working with the Insolvency Resolution Professional to discuss the potential outcome of its client's insolvency petition.
It is estimated that this development will have an impact on both revenue and profitability. The company is likely to see an impact on profitability at the net income level in the range of 65-75 basis points of the consolidated revenues for the quarter ended 31 March 2018, Wipro said in a statement. Though Wipro did not name the telecom client, it said that it had initially signed a deal with the client in 2008 and had renewed the contract in 2013. Wipro added that the client had filed its insolvency petition on 28 February 2018.
Most pharmaceutical shares declined. Aurobindo Pharma (down 1.44%), Piramal Enterprises (down 1.05%), Dr Reddy's Laboratories (down 0.75%), GlaxoSmithKline Pharmaceuticals (down 0.66%), Wockhardt (down 0.56%), Cadila Healthcare (down 0.42%), Strides Shasun (down 0.3%), Alkem Laboratories (down 0.21%) and Lupin (down 0.15%), edged lower. Sun Pharmaceutical Industries (up 0.12%), Cipla (up 0.90%), IPCA Laboratories (up 1.37%) and Divi's Laboratories (up 2.94%), edged higher.
Overseas, Asian markets advanced as investors digested comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy. Those measures, which Xi brought up in his speech at the Boao Forum for Asia, included lowering import tariffs for autos and other products, as well as enforcing legal intellectual property of foreign firms.
US stock futures also edged up amid improved investor confidence. Dow Jones industrial average futures were higher by 252 points in Asia morning trade.
US stock market finished well off session highs on Monday following a report that the Federal Bureau of Investigation (FBI) officers had raided the office of Michael Cohen, Trump's longtime personal lawyer. US stocks had rallied earlier in the session as comments from Trump and administration officials alleviated fears about rising trade hostilities between the US and China.
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