After trimming intraday gains in morning trade, key benchmark indices recovered in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex was up 57.91 points or 0.22% at 26,711.51. The Nifty 50 index was currently up 18.60 points ro 0.23% at 8,175.25. The Sensex fell 30.27 points or 0.11% at the day's low of 26,623.33 in morning trade. The barometer index rose 141.36 points or 0.53% at the day's high of 26,794.96 in early trade, its highest level since 4 November 2015. The barometer index fell 30.27 points or 0.11% at the day's low of 26,623.33 in morning trade. The Nifty fell 5.85 points or 0.07% at the day's low of 8,150.80 in morning trade. The index rose 43.35 points or 0.53% at the day's high of 8,200 in early trade, its highest level since 28 October 2015.
In overseas stock markets, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average was currently up 1.07%. 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 choppy 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 0.23%. In Hong Kong, the Hang Seng index was currently up 0.55%. 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.
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.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,100 shares rose and 1,015 shares fell. A total of 137 shares were unchanged. The BSE Mid-Cap index was currently up 0.2%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.32%, outperforming the Sensex.
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Pharma stocks edged higher as rupee weakened against the dollar. Dr Reddy's Laboratories (up 1.38%), Divi's Laboratories (up 1.39%), Cadila Healthcare (up 1.73%), Wockhardt (up 0.89%), GlaxoSmithkline Pharmaceuticals (up 0.69%), Glenmark Pharmaceuticals (up 0.62%), Cipla (up 0.5%), Ipca Laboratories (up 0.49%) and Alkem Laboratories (up 0.07%) rose. Strides Shasun (down 0.85%) and Lupin (down 1.01%) edged lower. A weak rupee boosts the value of overseas earnings of pharma companies in local terms. Pharma companies derive substantial revenue from exports.
In the foreign exchange market, the partially convertible rupee was currently hovering at 67.335, compared with its close of 67.0325 during the previous trading session.
Aurobindo Pharma was up 1.09% at Rs 772.30 ahead of its Q4 March 2016 results today, 30 May 2016.
Sun Pharmaceutical Industries (Sun Pharma) fell 0.32% at Rs 822.85 after the company announced that one of the company's US subsidiaries Sun Pharmaceutical Industries, Inc (SPII) has received a grand jury subpoena from the United States Department of Justice, Antitrust Division seeking documents from SPII and its affiliates relating to corporate and employee records, generic pharmaceutical products and pricing, communications with competitors and others regarding the sale of generic pharmaceutical products, and certain other related matters. SPII is currently responding to the subpoena, Sun Pharma said. Sun Pharma said it is of the opinion that the outcome of the referred enquiry is unlikely to have any material adverse impact on the consolidated operations or consolidated financial results of the company. The announcement was made after market hours on Friday, 27 May 2016.
Sun Pharma is scheduled to announce its Q4 March 2016 results today, 30 May 2016.
Cement stocks rose. Shree Cement (up 1.33%), ACC (up 1.11%) and Ambuja Cements (up 0.26%) edged higher. UltraTech Cement (down 1.23%) edged lower.
Grasim Industries was up 0.13%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Index heavyweight and cigarette major ITC was up 1.91% at Rs 357.65. The stock hit a high of Rs 358.45 and a low of Rs 353 so far during the day. The stock turned ex-dividend today, 30 May 2016, for dividend of Rs 8.50 per share for the year ended 31 March 2016.
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