Key benchmark indices logged modest gains on last trading day of the week led by index pivotals Reliance Industries, Mahindra & Mahindra and ICICI Bank. The barometer index, the S&P BSE Sensex, gained 147.01 points or 0.38% at 38,389.82. The Nifty 50 index rose 52.20 points or 0.45% at 11,589.10

Domestic stocks drifted lower in early trade on negative Asian stocks. Key benchmark indices cut almost entire intraday losses in morning trade. Indices hovered near the flat line in a small range in mid-morning trade. Stocks gyrated in a small range near the flat line in early afternoon trade. Indices bounced back and hit fresh intraday high in afternoon trade. Stocks gyrated near day's high in mid-afternoon trade.

The S&P BSE Mid-Cap index rose 1.15%. The S&P BSE Small-Cap index rose 0.55%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1559 shares rose and 1164 shares fell. A total of 188 shares were unchanged.

Index heavyweight Reliance Industries gained 1.32% to Rs 1,276.75

Auto major Mahindra & Mahindra advanced 4.12% to Rs 973.45

Private banking major ICICI Bank rose 1.4% to Rs 333.05

Bajaj Auto gained 5.13% after the company said it will shortly enhance its production capacities of 3 wheeler and quadricycles to 1 million per year as the government announces end to permits. The announcement was made after market hours yesterday, 6 September 2018.

Bajaj Auto said it will shortly enhance its production capacities of 3 wheeler and quadricycles to 1 million per year as the government announces end to permits. This announcement is a further fillip for the Bajaj 'Qute', which comes with CNG/LPG fuel options, as more and more state governments approve the Qute for taxi applications.

Sun Pharmaceutical Industries lost 1.72% on reports that the US drug regulator issued six observations to the company's Halol plant for inspection in August 2018.

Housing finance major HDFC lost 1.36%. The company said it concluded the sale of 24,85,956 equity shares of Rs 10 each, representing 5.1% of the equity capital of CAMS to Great Terrain Investment, Mauritius at Rs 681.91 per equity share, aggregating to a consideration of Rs 169.52 crore. Post sale, HDFC will continue to hold 5.99% of the equity capital or CAMS. The announcement was made after market hours yesterday, 6 September 2018.

IT major Infosys rose 0.96%. The company announced before trading hours today, 7 September 2018, the formation of a joint venture with Temasek, the global investment company headquartered in Singapore. The joint venture will integrate teams from Infosys and the operations of Temasek's wholly owned subsidiary in Singapore, Trusted Source Pte (“Trusted Source” or the “joint venture”), which currently delivers IT services to Temasek and a number of other clients. As part of the transaction, Infosys will acquire a 60% stake in the joint venture and Temasek will hold 40%.

Overseas, European shares were mixed while most Asian stocks were trading lower amid ongoing concerns about global trade and emerging markets. Overall, market sentiment was dragged by ongoing concerns over a trade war between the United States and China. On Thursday, President Donald Trump told the media that he will take his trade fights to Japan next. The news sent the dollar lower against the yen on Friday morning.

US stocks fell yesterday, 6 September 2018, amid renewed selling in technology shares as the Trump administration eyed escalating the trade war and concerns mounted over flagging demand for computer chips.

As per reports, turmoil in Argentina and Turkey, as their currencies continue to sink on deteriorating confidence, is dragging on the global market as investors fear a spillover effect on other healthier emerging markets and beyond.

On the trade front, the US and Canada continued high-stakes negotiations in the effort to revamp the North American Free Trade Agreement, which President Donald Trump said he is prepared to move forward with even without Canada's participation.

On the data front, the Institute for Supply Management's August read on the services sector rose to 58.5% from 55.7% in the previous month, while the final IHS Markit reading on the services purchasing managers index fell to 54.8 in August from 56 in July.