Key benchmark indices trimmed gains in morning trade after an initial upmove triggered by positive Asian stocks. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 48.93 points or 0.14% at 34,955.04. The Nifty 50 index was up 8.95 points or 0.08% at 10,623.30. The Sensex was trading below the psychological 35,000 level after hitting an intraday high above that level in opening trade.
Domestic stocks drifted higher in early trade on positive Asian stocks. The Sensex regained the psychological 35,000 level in opening trade.
Trading could be volatile as traders roll over positions in the F&O segment from the near month May 2018 series to June 2018 series. The May 2018 F&O contracts expire today, 31 May 2018.
On the domestic macro front, the government will announce data on first quarter gross domestic product (GDP) today, 31 May 2018. The Indian economy expanded 7.2% year-on-year in the last three months of 2017, from an upwardly revised 6.5% growth in the previous period.
The S&P BSE Mid-Cap index was off 0.12%. The S&P BSE Small-Cap index was off 0.21%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,001 shares rose and 1,066 shares fell. A total of 88 shares were unchanged.
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Overseas, Asian stocks rose as political turmoil in Italy that had roiled global financial markets showed signs of easing. US stocks rebounded yesterday, 30 May 2018 as investors judged the market reaction to Italy's political turmoil overwrought.
Global stocks were battered earlier in the week after Italy's two anti-establishment parties scrapped plans to form a coalition. That raised the prospect of a general election, stoking fears such a vote will effectively be a referendum on the country's euro membership.
A degree of calm, however, 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.
Back home, most auto stocks fell. Hero MotoCorp (down 1.27%), Tata Motors (down 0.95%), Maruti Suzuki India (down 0.81%), Mahindra & Mahindra (M&M) (down 0.06%), Bajaj Auto (down 0.06%) and TVS Motor Company (down 0.97%) fell. Escorts (up 0.55%), Eicher Motors (up 0.51%) and Ashok Leyland (up 0.54%) gained.
Cement stocks saw mixed trend. ACC (up 1%) and Ambuja Cements (up 0.63%) rose. Shree Cement (down 0.16%) fell.
Grasim Industries was off 0.98%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Ultratech Cement shed 0.14%. The Committee of Creditors (CoC) of Binani Cement (BCL) constituted in accordance with the provisions of the Insolvency and Bankruptcy Code 2016 (Code), in its meeting held on 28 May 2018, approved the resolution plan submitted by UltraTech Cement and has issued a letter of intent (LoI) to the company for acquisition of BCL. Upon consummation of this transaction, Ultratech Cement's cement capacity (including its overseas operations) will stand augmented to 116.15 MTPA including the recently announced acquisition of cement units of Century Textiles & Industries. The announcement was made after market hours yesterday, 30 May 2018.
Can Fin Homes rose 0.37% after the company said that its board will meet on Friday, 2 June 2018, to consider raising funds by issuing equity shares through rights issue and/ or qualified institutions placement and/or preferential issue to promoters or any other permissible securities, subject to such approvals as may be required.
The board will also consider borrowing/raising funds by issue of on-shore and/or off-shore debt instruments including but not limited to bonds, NCDs, non-convertible subordinated debt Tier-II debentures, denominated in Indian currency and/or any foreign currency. The announcement was made after market hours yesterday, 30 May 2018.
Granules India rose 0.75% after the company said that its wholly owned subsidiary, Granules Pharmaceuticals, Inc., has launched the generic version of Methylergonovine Maleate tablets, USP, 0.2mg, the generic equivalent to Methergine in partnership with West-Ward Pharmaceuticals Corp. (West-Ward), a wholly-owned subsidiary of Hikma Pharmaceuticals PLC (Hikma). Methylergonovine is a semi-synthetic ergot alkaloid used for the prevention and control of postpartum haemorrhage. The announcement was made after market hours yesterday, 30 May 2018.
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