Key barometers were trading with decent gains in mid-morning trade. Global stock markets were positive on robust US payrolls data and a brisk pickup in Chinese service sector activity. However, a surge in coronavirus cases capped strong gains.
At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 126.65 points or 0.35% at 35,970.35. The Nifty 50 index added 45.15 points or 0.43% at 10,596.85.
In the broader market, the S&P BSE Mid-Cap index rose 0.66% while the S&P BSE Small-Cap index gained 0.51%. Both these indices outperformed the Sensex.
The market breadth was positive. On the BSE, 1228 shares rose and 1135 shares fell. A total of 126 shares were unchanged.
The Nifty Pharma index added 0.11% to 9,954.90. The index has risen 0.7% in two sessions.
Among the index constituents, Torrent Pharma (up 1.05%), Sun Pharma (up 0.41%), Dr. Reddy's Labs (up 0.20%), Aurobindo Pharma (up 0.15%) and Alkem Laboratories (up 0.01%) edged higher.
Cipla (down 1.02%), Divi's Labs (down 0.41%), Biocon (down 0.04%) and Lupin (down 0.04%) declined.
Cadila Healthcare was up 0.23% to Rs 364.10. The company said its vaccine for COVID-19 has successfully completed pre-clinical development and received permission to initiate human clinical trials.
Shares in Asia rose across the board on Friday following the overnight gains on Wall Street after a report by the U.S. Labor Department showed another record spike in employment in the month of June.
Meanwhile, China's services sector grew at its fastest pace in over a decade in June with the Caixin/Markit services Purchasing Manager's Index (PMI) coming in at 58.4 for the month. The 50 level in PMI readings separates growth from contraction on a monthly basis.
The US stock market finished session higher on Thursday, 02 July 2020, with the Nasdaq reached an all-time closing high, as bullish investors took heart from better than expected June employment report which provided assurance that the U.S. economic recovery was well under way. However, market gains capped amid concerns about rising coronavirus cases.
US nonfarm payrolls surged by 4.8 million jobs in June, thanks to rises in the hard-hit hospitality sectors. A separate report on jobless claims, the most timely data on employment, showed initial claims for state unemployment benefits fell just 55,000 to a seasonally adjusted 1.427 million for the week ended June 27. The number of people receiving benefits after an initial week of aid rose 59,000 to 19.290 million in the week ending June 20.
However, US daily Covid-19 cases topped 50,000 for the first time with increases in major states including Florida, Texas and California. On Thursday, Florida reported a record-shattering 10,000 new cases of the disease.
U.S. financial markets will be closed on Friday to observe the July Fourth holiday which falls on Saturday this year.