A bout of volatility was witnessed in early afternoon trade as key benchmark indices regained positive terrain after slipping into the red for a brief period. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 35.38 points or 0.13% at 27,046.63. The Nifty 50 index was currently up 5.80 points or 0.07% at 8,272.25. Key indices continued to trade near the flat line so far during the session.
In overseas markets, Asian stocks were mixed as weak Chinese export data offset a brightening energy sector outlook and an expected delay in interest rate hikes by the US Federal Reserve. Data showed that China's exports fell more than expected in May as global demand remained stubbornly weak, but imports beat forecasts, adding to hopes that the economy may be stabilising. China's exports fell 4.1% and imports dropped 0.4% from a year earlier. Separately, China's central bank, People's Bank of China said it was keeping its economic growth forecast for 2016 year steady at 6.8% but it now expects exports to contract and fixed asset investment to grow more strongly than previously forecast. Meanwhile, Japan's economy grew faster than initially estimated in the first quarter. Japan's economy expanded at an annualized 1.9% rate in the first quarter of this year, revised up from a preliminary reading of 1.7% growth.
US stocks eked out modest gains yesterday, 7 June 2016 propelled by a sharp rally in the energy sector. Investors shrugged off US government data yesterday, 7 June 2016 that showed productivity of businesses and workers fell in the first quarter, but by less than initially reported.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,443 shares rose and 831 shares declined. A total of 116 shares were unchanged. The BSE Mid-Cap index was currently up 0.44%. The BSE Small-Cap index was currently up 0.82%. Both these indices outperformed the Sensex.
Auto stocks gained. Mahindra & Mahindra (M&M) (up 0.51%), Ashok Leyland (up 0.09%), Maruti Suzuki India (up 0.07%), Eicher Motors (up 0.1%), Bajaj Auto (up 0.09%), and Hero MotoCorp (up 1.31%) gained. TVS Motor Company declined 0.54%.
Tata Motors rose 0.59% to Rs 465.70 after a bulk deal of 29.40 lakh shares was executed on the scrip at Rs 466.45 per share at 09:43 IST on BSE today, 8 June 2016. The stock hit a high of Rs 468.70 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 464.20 so far during the day.
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Shares of oil exploration and production (E&P) gained as crude oil prices rose. Cairn India (up 1.55%), Oil India (up 0.48%) and ONGC (up 1.36%) rose. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) dropped 0.28%.
Shares of public sector oil marketing companies (PSU OMCs) fell as crude oil prices rose. BPCL (down 0.05%) and Indian Oil Corporation (IOCL) (down 0.01%) declined. HPCL rose 0.32%. Rise in crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
In global commodities markets, crude oil futures extended gains helped by industry data showing a larger-than-expected drawdown in US crude inventories, worries about attacks on Nigeria's oil industry and strong Chinese demand. Brent for August settlement was currently up 7 cents at $51.51 a barrel. The contract had risen 89 cents or 1.76% to settle at $51.44 a barrel during the previous trading session.
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