Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 31.26 points or 0.12% at 26,684.86. The Nifty 50 index was currently up 12.75 points or 0.16% at 8,169.40. The market breadth indicating the overall health of the market was positive. On BSE, 1,144 shares rose and 1,129 shares fell. A total of 153 shares were unchanged. The BSE Mid-Cap index was currently up 0.23%. The BSE Small-Cap index was currently up 0.38%. Both these indices outperformed the Sensex.
In overseas stock markets, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas. Japanese Prime Minister Shinzo Abe said he would delay a sales tax hike scheduled for April next year by 2-1/2 years, Masahiko Komura, vice president of the ruling Liberal Democratic Party, told reporters today, 30 May 2016.
Chinese stocks edged higher in volatile trade after the Shanghai and Shenzhen stock exchanges on Friday, 27 May 2016, announced rules on share trading suspensions, removing one potential roadblock to inclusion Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes, a move which could direct large amount of capital into China's stock markets. In mainland China, the Shanghai Composite was currently up 0.25%. In Hong Kong, the Hang Seng index was currently up 0.52%. MSCI said in March a decision to include 5% of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again.
US stocks edged higher during the previous trading session on Friday, 27 May 2016, after the latest data showed that the economy's slowdown in the first quarter wasn't as bad as initially thought. US GDP expanded at a 0.8% seasonally adjusted annual rate in the first three months of 2016, up from an initial estimate for 0.5% growth, the Commerce Department said on Friday, 27 May 2016. The faster-than-expected pace of growth, however, still represents a deterioration from the fourth quarter's 1.4% growth.
Federal Reserve Chairwoman Janet Yellen said in a speech on 27 May 2016 that a rate increase would be appropriate in coming months if the economy continues to strengthen. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016.
Bank stocks witnessed a mixed trend. Among public sector banks, United Bank of India (up 1.69%), Syndicate Bank (up 1.33%), Corporation Bank (up 0.98%), Union Bank of India (up 0.78%) and Punjab National Bank (up 0.39%) edged higher. Bank of India (down 1.38%), Canara Bank (down 0.65%), Bank of Baroda (down 0.14%) and IDBI Bank (down 0.15%) edged lower.
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State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017). The stock was currently up 1.25% at Rs 198. The SBI stock surged 6.42% to settle at Rs 195.55 during the previous trading session on Friday, 27 May 2016, shrugging off weak financial performance for Q4 March 2016. SBI has identified about Rs 31000 crore of loans as under special watchlist for FY 2017, which is just 2.1% of overall loan book. Of these watch list accounts, about 70% of loans have more chances of slipping to NPA category. About Rs 11655 crore of watchlist accounts come from restructured advance book, while the sectors contributing to the watch list accounts are power (Rs 4748 crore), iron & steel (Rs 4299 crore), engineering (Rs 3574 crore), oil & gas (Rs 3396 crore), construction (Rs 2608 crore), chemicals (Rs 2326 crore) etc. SBI aims to achieve credit growth of 12-14% in the current financial year, to be driven by retail credit and good quality corporate book.
SBI's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result hit the market during trading hours on 27 May 2016.
Among private sector banks, Axis Bank (up 1.11%), Kotak Mahindra Bank (up 0.2%) and ICICI Bank (up 0.51%) gained. IndusInd Bank (down 0.27%) edged lower.
Index heavyweight HDFC Bank was down 0.32% at Rs 1,183.50. The stock hit a high of Rs 1,194.80 and a low of Rs 1,183.05 so far during the day.
Yes Bank rose 0.43% at Rs 1,031.10. The stock turned ex-dividend today, 30 May 2016, for final dividend of Rs 10 per share for the year ended 31 March 2016.
Auto stocks were mixed. Hero MotoCorp (up 1.72%) and Bajaj Auto (up 0.92%) edged higher. TVS Motor Company (down 2.04%), Ashok Leyland (down 1.08%) and Eicher Motors (down 0.51%) edged lower.
Tata Motors rose 3.9% at Rs 419.25 ahead of its Q4 March 2016 results today, 30 May 2016.
Mahindra & Mahindra rose 0.53% at Rs 1,342.25 ahead of its Q4 March 2016 results today, 30 May 2016.
Maruti Suzuki India (MSIL) was off 1.18% at Rs 4,092.35. MSIL after market hours on Friday, 27 May 2016, announced that the car maker is all set to start exports of its much awaited light commercial vehicle (LCV) Super Carry to South Africa and Tanzania. The first lot of nearly 100 Super Carry LCVs has been dispatched for shipment, MSIL said. The shipment to South Africa and Tanzania is of the petrol variant of Super Carry, the company said. The petrol variant for export market is powered by G12B engine. Besides African markets, the company also plans to export the Super Carry to South Asian Association for Regional Cooperation (SAARC) nations, it added. Based on the feedback, the company will explore export opportunities for Super Carry in other international markets, MSIL said. The India launch for Super Carry is planned in Q2 September 2016. To begin with, it will be launched in select parts of the country. For the domestic market, Super Carry will be powered by the E08 diesel engine. The company is setting up a separate retail channel in the Indian market exclusively for the Super Carry, MSIL said.
NMDC declined 2.65% at Rs 90.05 after net profit dropped 58.95% to Rs 552.93 crore on 44.63% fall in total income to Rs 1967.94 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 27 May 2016.
NMDC said that the company has incorporated a subsidiary company NMDC-Sail on 23 May 2016 in order to develop, explore, etc. sale/supply of iron ore from the allocated mining resource in Chhattisgarh. NMDC will hold 51% while Sail will hold 49% stake in the subsidiary.
Shares of Steel Authority of India (Sail) were up 1.17% at Rs 43.15.
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