Key benchmark indices were trading higher in early trade, tracking positive leads from Asian markets. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 292.6 points or 0.74% at 39,908.26. The Nifty 50 index was up 86.60 points or 0.73% at 11957.25.
Among secondary barometers, the BSE Mid-Cap index was up 0.63%. The BSE Small-Cap index was up 0.4%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 715 shares rose and 300 shares fell. A total of 61 shares were unchanged.
Overseas, Asian shares were trading higher on Monday, after the US and Mexico reached a deal to avoid the implementation of tariffs.
China's May exports rose 1.1% from a year earlier, leaving it with an overall trade surplus of $41.65 billion for the month.
US stocks ended higher on Friday, as weak jobs data raised hopes for interest rate cuts. The US economy added 75,000 jobs in May, marking the second time in four months that jobs growth totaled less than 100,000.
President Donald Trump said on Friday that the United States and Mexico have signed an agreement to avoid tariffs that were scheduled to go into effect on Monday. Trump said that Mexico in return has agreed to take strong measures to stop illegal immigration coming through the US southern border.
Last week, Trump threatened to impose 5% tariffs on all Mexican imports starting 10 June if Mexico did not do more to stop illegal immigration.
Back home, Bharat Forge was up 1%. The company has entered into a Joint Venture Agreement (JVA) with Refu Electronik GmbH, Germany and its Affiliates / Promoters (REFU) on 6 June 2019. The JVA for incorporating a Joint Venture Company, under the laws of Germany for developing, manufacturing and selling on board controllers and components mainly - drives, invertors, converters (including AC/DC) and all kind of auxiliary applications, related power electronics and battery management (BMS), etc. for all quality of e-mobility vehicles viz, hybrid and electric 2-wheelers, 3-wheelers, cars and commercial vehicles.
Mahindra & Mahindra (M&M) was down 0.18%. The company said that the company at its Automotive Sector and Farm Equipment Sector, and Mahindra Vehicle Manufacturers, a wholly owned subsidiary of the company (MVML), as part of aligning its production with sales requirements, would be observing ''No Production Days'' ranging between 5 - 13 days in various plants of the Company and MVML during the first quarter of the Financial Year 2019-2020.
Kotak Mahindra Bank down 0.20%. The Reserve Bank of India (RBI) has, by an order dated 6 June 2019, imposed a monetary penalty of Rs 2 crore on Kotak Mahindra Bank for non-compliance with the directions issued to the bank. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank.
MOIL was down 0.13%. The company has got environmental clearance for Mn. Ore mine in an area of 48.974 hectares for additional production capacity of 1,20,000 tonnes per annum. This area is adjacent to Ukwa mine of the company. Total reserve of this new lease area is estimated at 3.8 Million tons.
K.P.R. Mill was up 1.17%. The buyback committee of K.P.R. Mill has fixed the record date as 19 June 2019 for the purpose of buyback of equity shares of the company.
Atul was up 1.19%. The company had signed a Joint Venture Agreement on 1 March 2012 with Elkay Kimyasal Maddeler SAN. TIC. A.S. based in Turkey (Eikay) for promoting stone care chemicals in India. In view of changed circumstances and subsequent experience, it became clear that the Joint Venture was beneficial to neither and the parties terminated the Joint Venture Agreement on 7 June 2019 by mutual consent.
The 2019 monsoon set in over parts of Kerala on Saturday, 8 June 2019, against its normal date of 1 June. A low pressure area formed over Southeast and adjoining Lakshadweep & East central Arabian Sea. It is very likely to intensify into a depressionover Southeast & adjoining East central Arabian Sea during next 48 hours. It is likely to move north-northwestwards and intensify further into a cyclonic storm during subsequent 24 hours, IMD said in a release.
On the economic front, India's consumer confidence declined in May 2019 due to deteriorating sentiments on the economic situation and employment, according to the Reserve Bank of India (RBI) Survey. After a sharp upsurge to 104.60 in the March 2019 round, the consumer confidence index fell to 97.3, suggesting that Indians turned pessimistic about jobs and price levels, the Consumer Confidence Survey (CCS) showed.