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Market trims losses

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Capital Market
Last Updated : May 31 2016 | 2:01 PM IST

After a rangebound trade in early afternoon trade, key benchmark indices trimmed losses in afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was down 40.91 points or 0.15% at 26,684.69. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 8.05 points or 0.1% at 8,170.45. The market breadth indicating the overall health of the market was weak. On BSE, 903 shares rose and 1,471 shares declined. A total of 165 shares were unchanged. The BSE Mid-Cap index was currently down 0.01%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.21%. The decline in this index was higher than the Sensex's decline in percentage terms.

In overseas stock markets, European stocks witnessed a mixed trend. In Asia, Chinese stocks edged higher on speculation that MSCI Inc., the global index provider, will soon add mainland-traded Chinese stocks, so-called A-shares, in its Emerging Markets Index. In mainland China, the Shanghai Composite index settled 3.34% higher. In Hong Kong, the Hang Seng index was currently up 1.31%. MSCI's inclusion of A-shares into the index will channel billions in passive asset-management money into China. On 27 May 2016, the Shanghai and Shenzhen stock exchanges announced rules on share trading suspensions, removing one potential roadblock for inclusion of Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes. MSCI said in March a decision to include 5 percent of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again. MSCI will reportedly take a call in mid-June 2016 whether to add Chinese shares to its global benchmark indexes.

Japanese shares edged higher after the latest data showed industrial output in April rose for the second month. The Nikkei 225 Average closed 0.98% higher.

Reliance Industries (RIL) was down 0.64% to Rs 963.25. Reliance Exploration & Production DMCC (REPDMCC), an indirect wholly owned subsidiary of RIL, and French oil major Total S.A. have executed agreements on 30 May 2016 for the sale of the entire 76% interest held by REPDMCC in Gulf Africa Petroleum Corporation (GAPCO). GAPCO is a holding company with operating subsidiaries in Tanzania, Kenya and Uganda which are primarily engaged in petroleum product import, and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa. GAPCO currently operates 108 retail outlets and owns 260 TKL of storage capacity in East Africa.

REPDMCC's agreement to sell its interest in GAPCO is part of a joint transaction, wherein both REPDMCC and a minority shareholder in the company have agreed to sell their entire respective holdings for cash. The net proceeds for the sale will be finalized on completion of the transaction, which is expected to be within the coming months.

Most FMCG shares edged lower. Godrej Consumer Products (down 2.27%), Dabur India (down 2.23%), GlaxoSmithKline Consumer Healthcare (down 1.39%), Marico (down 0.67%), Bajaj Corp (down 0.58%), Britannia Industries (down 0.3%), Hindustan Unilever (down 0.29%) and Procter & Gamble Hygiene & Health Care (down 0.04%), edged lower. Nestle India (up 0.03%), Tata Global Beverages (up 0.13%), Jyothy Laboratories (up 0.67%) and Colgate Palmolive (India) (up 0.98%) edged higher.

Most capital goods shares edged lower. Reliance Defence and Engineering (down 2.31%), Praj Industries (down 1.46%), Suzlon Energy (down 1.23%), Thermax (down 1.13%), BEML (down 0.91%), Crompton Greaves (down 0.88%), Siemens (down 0.79%), Bharat Electronics (down 0.62%), Alstom T&D India (down 0.32%), Havells India (down 0.32%) and AIA Engineering (down 0.09%), edged lower. ABB India (up 0.22%), ALSTOM India (up 0.36%), Lakshmi Machine Works (up 0.48%), SKF India (up 0.64%), Bharat Heavy Electricals (up 0.79%), Punj Lloyd (up 1.86%) and Jindal Saw (up 4.19%), edged higher.

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L&T was down 0.79% at Rs 1,474.65. The stock hit a high of Rs 1,488.70 and a low of Rs 1,467.95 so far during the day. L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) today, 31 May 2016, announced a teaming agreement with engineering, construction, technical and management services firm Parsons to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors in the US. LTHE and Parsons will collaborate to provide customers with conceptual engineering, feasibility studies, front-end engineering design, detailed engineering, specialty and high-end engineering, cost estimating, and engineering, procurement, and construction management services in the US.

GMR Infrastructure declined 2.78% after the company reported consolidated net loss of Rs 953.50 crore in Q4 March 2016 compared with consolidated net loss of Rs 891.90 crore in Q4 March 2015. Total income rose 27.64% to Rs 3826.37 crore in Q4 March 2016 over Q4 March 2015. EBITDA (earnings before interest, taxes, depreciation and amortization) margin rose to 36% in Q4 March 2016 from 29% in Q4 March 2015. The result was announced before market hours today, 31 May 2016.

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First Published: May 31 2016 | 1:15 PM IST

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