The Nifty rose 15.05 points, or 0.17% at the day's high of 8,657.60 in early trade. The index fell 16 points, or 0.19% at the day's low of 8,626.55 at the onset of trading session.
The market breadth indicating the overall health of the market was strong. On BSE, 1,370 shares rose and 819 shares fell. A total of 153 shares were unchanged. The BSE Mid-Cap index was currently up 0.61%. The BSE Small-Cap index was currently up 0.76%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian shares witnessed a mixed trend after New York Fed President William Dudley said the Fed could raise interest rates as soon as September, prompting investors to pause after rallies in recent weeks. Chinese shares rose after leaders approved a plan to give foreign investors more access to Chinese equities through Hong Kong.
In mainland China, the Shanghai Composite index was currently up 0.06%. In Hong Kong, the Hang Seng index was currently up 0.27%. China's Cabinet announced approval of an initiative that would give foreign investors more access to Chinese stocks by linking exchanges in Hong Kong and the mainland city of Shenzhen.
US stocks eased from record highs yesterday, 16 August 2016, with the S&P 500 losing 0.55% as investors weighed hawkish comments by Federal Reserve officials against sharp gains for oil futures, a weakening dollar and fresh consumer-price data that showed US inflation remains tepid.
Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility.
Dudley cited evidence of wage gains and a tighter labor market that could boost inflation. Their comments came ahead of an annual meeting of central bankers from around the world in Jackson Hole, Wyoming, next week.
Auto stocks gained on renewed buying. Tata Motors (up 1.12%), Maruti Suzuki India (up 0.52%), Mahindra & Mahindra (M&M) (up 0.65%), TVS Motor Company (up 3.78%), Escorts (up 0.82%), and Ashok Leyland (up 0.35%) gained. Eicher Motors shed 0.32%.
Bajaj Auto gained 2.13% to Rs 2,937. The stock hit a high of Rs 2,948 in intraday trade so far, which is record high for the counter. The stock hit a low of Rs 2,878 so far during the day.
Hero MotoCorp advanced 3.06% after completion of realignment of business interest among Munjal family. Sunil Kant Munjal's resignation from the company's board of directors comes as his tenure as the Joint Managing Director of the company ended yesterday, 16 August 2016.
Hero MotoCorp (HMCL) announced on 28 July 2016 that Sunil Kant Munjal decided to step down as Joint Managing Director of the company as part of a realignment of business interest amongst the promoter Munjal family.
Realty stocks rose on renewed buying. DLF (up 0.79%), Indiabulls Real Estate (up 1.12%), Housing Development and Infrastructure (up 1.09%), D B Realty (up 1.44%), Unitech (up 9.2%), Sobha (up 1.69%), Godrej Properties (up 1.62%), Oberoi Realty (up 0.87%) and Parsvnath Developers (up 1.86%) rose. Prestige Estates Projects fell 0.69%.