Local stocks are trading higher in early trade, extending yesterday's rally. At 9:23 IST, the barometer index, the S&P BSE Sensex, was up 225.07 points or 0.71% at 31,830.29. The Nifty 50 index was up 69.45 points or 0.75% at 9,384.40. Positive Asian stocks boosted sentiment.
The S&P BSE Mid-Cap index was up 0.55%. The S&P BSE Small-Cap index was up 0.8%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 821 shares rose and 272 shares fell. A total of 55 shares were unchanged.
F&O expiry:
Market could remain volatile as traders roll over positions in the F&O segment from the near month May series to June series. The May 2020 F&O contracts expire today, 28 May 2020.
Stocks in news:
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United Spirits rose 0.23%. The company's consolidated net profit dropped 52.52% to Rs 58.40 crore on 11.28% fall in total income to Rs 2,065 crore in Q4 March 2020 over Q4 March 2019.
Vedanta rose 1.99%. Vedanta announced that India Ratings has downgraded the rating of the company to IND AA- with negative outlook from previous rating of IND AA/ negative outlook.
Wipro fell 1.29%. Wipro Gallagher Solutions (WGS), a Wipro company and leading provider of loan origination software solutions, announced the launch of NetOxygen v7.0, the latest version of its NetOxygen loan origination solution platform.
IndoStar Capital Finance rose 0.5%. IndoStar Capital Finance closed on Rs 1,225 crore equity capital injection by Brookfield Business Partners L.P., together with its institutional partners. As part of the investment, Brookfield will become a co-promoter in IndoStar and has the ability to nominate two board members.
Adani Power rose 1.62%. Adani Power has signed power purchase agreement with the Madhya Pradesh government for procurement of 1,230 MW of electricity on a long-term basis from a new power station of 1,320 MW capacity to be set up on super critical technology.
Tube Investments of India advanced 4.19%. Tube Investments of India said that the board of directors of the company has approved fresh long-term borrowing, to meet the company's fund needs during the financial year 2020-21, of a sum not exceeding in the aggregate Rs 200 crore, including by way of issue of privately placed secured non-convertible debentures, in one or more tranches.
Global Markets:
Overseas, Asian stocks were trading higher on Thursday on the back of an overnight surge on Wall Street as optimism over the reopening of economies buoyed investor sentiment.
Japanese Prime Minister Shinzo Abe's cabinet approved on Wednesday a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world's third-largest economy deeper into recession.
In US, stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery. Shares of previously beaten-down travel companies saw strong gains on Tuesday and Wednesday.
Developments on U.S.-China relations likely continued to be monitored by investors, as tensions between the two economic powerhouses mount.
U.S. Secretary of State Mike Pompeo told Congress on Wednesday that Hong Kong was no longer autonomous from China, raising questions over the special administrative region's favorable trade relationship with the U.S. as well as opening up the possibility of sanctions on Chinese officials. Pompeo's comments came following the proposal of a national security law from Beijing that has spurred protests in Hong Kong.
US President Donald Trump said Tuesday he plans to make an announcement by the end of the week regarding China's efforts to impose new security laws that would undercut Hong Kong's autonomy. And China's Foreign Ministry said on Wednesday it would strike back at the U.S. if it took any action over the security laws.
The House of Representatives on Wednesday also passed legislation condemning China for the detention and torture of Uighur Muslims in the country's western region of Xinjiang.
Meanwhile, New York Federal Reserve Bank President John Williams said the central bank was thinking hard about the possibility of targeting bond yields to keep U.S. borrowing costs low. St. Louis Fed President James Bullard also said policy makers should consider incentives to get workers back to their jobs, rather than expanding unemployment pay, as the recovery takes hold.
Back home, key barometers witnessed a blockbuster rally on Wednesday, led by a surge in banks shares. The barometer S&P BSE Sensex jumped 995.92 points or 3.25% at 31,605.22. The Nifty 50 index surged 285.90 points or 3.17% at 9,314.95.
Foreign portfolio investors (FPIs) sold shares worth Rs 334.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,408.85 crore in the Indian equity market on 27 May, provisional data showed.
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