MARKET WRAP: Nifty ends May F&O expiry above 10,700, Sensex gains 416 pts

Benchmark indices gained on expectations that the domestic economy likely gained momentum in the first three months of 2018.

Benchmark indices gained on Thursday on expectations that the domestic economy likely gained momentum in the first three months of 2018. Investors also cheered expiry of F&O contracts for May 2018 series.

The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points 
 

India is likely to retain the position of world’s fastest growing major economy in the January-March quarter, surpassing China’s growth of 6.8 per cent, driven by gains in manufacturing and consumer spending.

The median in a Reuters poll on the latest quarter’s annual growth was 7.3%, the best pace since July-September 2016. Forecasts for January-March range from 6.9 to 7.7%.

Among sectors, financials firmed up and accounted for most of the gains on the indices, with HDFC Bank gaining nearly 5% and Housing Development Finance Corp inching 2% higher.

Shares of Reliance Communications jumped nearly 6% after the Anil Ambani-led company said on Wednesday it expects to complete its asset sale to Reliance Jio Infocomm and Canada’s Brookfield in coming weeks.

Global Markets

Asian stocks bounced back from a two-month trough as a degree of calm returned with the two anti-establishment parties renewing efforts to form a coalition government rather than force Italy into holding elections for the second time this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7% after slumping on Wednesday to its weakest since early April.

(With inputs from Reuters)

3:41 PM

Nifty Pharma fell over 1% 

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
SUN PHARMA.INDS.	480.35	494.55	-14.20	-2.87	18785199
DR REDDY'S LABS	1927.85	1961.80	-33.95	-1.73	1859410
CADILA HEALTH.	361.30	367.50	-6.20	-1.69	3115317
AUROBINDO PHARMA	556.30	565.65	-9.35	-1.65	4277149
BIOCON	665.40	674.90	-9.50	-1.41	5112021

3:38 PM

Nifty Bank index gains over 2%: Top gainers in the pack

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
HDFC BANK	2147.40	2048.35	99.05	4.84	9107110
INDUSIND BANK	1959.40	1884.85	74.55	3.96	3620127
ST BK OF INDIA	270.60	267.15	3.45	1.29	29605103
KOTAK MAH. BANK	1319.65	1303.25	16.40	1.26	6320209
IDFC BANK	40.55	40.05	0.50	1.25	138009862

3:36 PM

Nifty chart for the day

3:35 PM

Sectoral Trend

3:34 PM

Top Sensex gainers and losers

3:33 PM

Markets at Close

The S&P BSE Sensex ended the day at 35,322, up 416 points while the broader Nifty50 index settled at 10,736, up 121 points

3:18 PM

What is China's A-share MSCI inclusion on June 1?

 

Global market research and index company MSCI Inc will add roughly 230 China-listed shares to its emerging market benchmark in a two-step process starting on June 1, a move expected to drive a surge of foreign money into the country's stock markets.

 

MSCI's decision a year ago to include yuan-denominated Chinese stocks, or "A-shares", into its emerging market (EM) index triggered a rally in Chinese blue-chips in 2017, though the market has corrected this year amid rising borrowing costs and fears of a Sino-US trade war. READ MORE

3:08 PM

The quiet upheaval in Indian broking that's taking a bite out of revenues

 

The nearly 200-billion rupee Indian broking industry is going through a bit of turbulence. And its roots can be traced all the way to Europe.

 

The European Union has introduced new rules that are already taking a bite out of revenues and is changing how research and execution services are offered to some of India’s largest foreign investors. The resulting pressure on earnings is likely to mirror the tumult seen elsewhere in the world, according to experts. READ MORE

2:57 PM

ANALYSIS Debt-free firms make up 57% of all market cap; Why Dalal Street loves them

 

In a world awash with debt, Dalal Street shows special preference for companies that stay away from borrowings and fund their operations largely from internal accruals. Debt-free companies (on net debt basis) account for 57 per cent of all market capitalisation of listed non-financial companies even though they are in minority in terms of revenues, assets and net profits.

 

In all, 209 non-financial companies out of a total sample of 594 companies were debt-free at the end of FY18 and together they accounted for 25.6 per cent of the sample companies’ combined net sales, 22.7 per cent of all assets and 46.5 per cent of their net profit. The analysis is based on a common sample of companies that part of BSE 500, BSE Midcap and BSE Smallcap indices. READ MORE

2:44 PM

31 stocks from smallcap index fall over 25% in May

 

Manpasand Beverages, Jet Airways (India), Avanti Feeds, Atlanta, Hindustan Construction Company (HCC), Waterbase, Rolta India and Dilip Buildcon were among 31 stocks from the S&P BSE Smallcap index falling more than 25% in the month of May.

 

Mangalam Drugs, Asian Oilfield, Sunil Hitech, Tamil Nadu Petroproudcts, Kitex Garments, Nandan Denim, Bhansali Engineering Polymers, Rain Industries, Granules India and Thirumalai Chemicals too slipped an over 25% during the month. READ MORE

2:30 PM

Investors worried PM Modi may sacrifice fiscal prudence ahead of 2019 polls

 

The rupee is the worst performing currency in Asia this year, flirting with an all-time low on worries that India is headed for problems as rising oil prices rewrite the once-shining fundamentals of Asia’s third-largest economy.

 

India had been in a sweet spot since Prime Minister Narendra Modi came to power in 2014. Its economic expansion is outpacing even China’s, inflation is in check, its budget deficit seemed to be shrinking and its popular prime minister had looked unbeatable. It’s now the world’s fastest-growing large economy. READ MORE

2:15 PM

Coal India extends gain post Q4 results; stock hits three-month high

 

Coal India rallied 5% to Rs 303 in intra-day trade on Thursday, extending its Wednesday’s 2.3% gain on the BSE, after the company reported higher than expected 4.5% year on year growth in consolidated net sales at Rs 251 billion in March 2018 quarter (Q4FY18).

 

The stock hit a three-month high in early morning deal today, was less than 5% away from its 52-week high of Rs 317 touched on February 27, 2018 in intra-day trade. READ MORE

2:00 PM

Market Check

S&P BSE Sensex	35,103.25		0.56%
Nifty 50	10,672.15		0.54%
S&P BSE 200	4,636.84		0.39%
Nifty 500	9,280.90		0.28%
S&P BSE Mid-Cap	16,014.66		-0.24%
S&P BSE Small-Cap	17,280.12		-0.39%

1:51 PM

Sebi sets up review panel to hear disputes between rating agencies & firms

 

The Securities and Exchange Board of India (Sebi) on Wednesday directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.

 

“To ensure transparency and fairness, it has been decided that requests by issuers for review of the ratings will be reviewed by a rating committee that shall comprise a majority of independent members,” Sebi said. READ MORE

1:38 PM

Orient Cement calls off deal with Jaypee Group; stock gains 15%

 

Orient Cement has moved higher by 15% to Rs 140 on the BSE in intra-day trade, after the company announced the termination of an agreement with Jaypee Group companies to acquire Nigrie cement grinding unit and Bhilai Jaypee Cements due to its inability to complete the deal within the stipulated timeframe.

 

Orient Cement on May 31, 2017 had executed share purchase agreement entered into between the Company and Jaiprakash Associates for the acquisition by the Company of 74% equity shares of Bhilai Jaypee Cement from Jaiprakash Associates; and business transfer agreement entered into between the Company, Jaiprakash Power Ventures and Jaiprakash Associates, for the acquisition by the Company of the Nigrie Cement Grinding Unit, as going concern from Jaiprakash Power Ventures. READ MORE