A rangebound movement was witnessed as key benchmark indices hovered in green in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 152.75 points or 0.59% at 26,033.92. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty was currently up 36.75 points or 0.46% at 7,971.65. The Sensex was currently trading above the psychologically important 26,000 mark after piercing that level earlier during the trading session.
The market may remain volatile today, 26 May 2016, as traders roll over positions in the futures & options (F&O) segment from the near month May 2016 series to June 2016 series. The near month May 2016 derivatives contracts are set to expire today, 26 May 2016.
The Sensex jumped 187.44 points, or 0.72% at the day's high of 26,068.61 in morning trade, its highest level since 28 April 2016. The index rose 60.34 points, or 0.23% at the day's low of 25,941.51 in early trade. The Nifty rose 51.45 points, or 0.65% at the day's high of 7,986.35 in morning trade, its highest level since 28 April 2016. The index rose 13.60 points, or 0.17% at the day's low of 7,948.50 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,097 shares rose and 734 shares fell. A total of 109 shares were unchanged. The BSE Mid-Cap index was currently up 0.36%. The BSE Small-Cap index was currently up 0.46%. Both these indices underperformed the Sensex.
In overseas stock markets, Asian stocks witnessed a mixed trend. Energy and materials shares sector stocks led gains in US stocks yesterday, 25 May 2016, following a jump in crude oil prices triggered by a weekly report showing a decline in US crude inventories.
FMCG shares were mixed. Godrej Consumer Products (up 1.80%), GlaxoSmithKline Consumer Healthcare (up 1.49%), Dabur India (up 1.23%), Jyothy Laboratories (up 0.98%), Hindustan Unilever (up 0.02%) and Colgate Palmolive (India) (up 0.01%), edged higher. Britannia Industries (down 0.07%), Procter & Gamble Hygiene & Health Care (down 0.11%), Tata Global Beverages (down 0.17%), Bajaj Corp (down 0.3%), Marico (down 0.32%) and Nestle India (down 0.77%), edged lower.
Cement shares edged higher. Ambuja Cements (up 2.34%), ACC (up 1.17%) and UltraTech Cement (up 0.36%), edged higher.
Grasim Industries was up 0.02%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Tata Steel rose 0.05% to Rs 324.50 after the company trimmed losses in Q4 March 2016. The company reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016 compared with net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.33% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 25 May 2016.
Tata Steel announced the start of commercial production at the 3 million tonnes per annum (mtpa) Kalinganagar steel plant. The stabilisation process is currently underway. The facility will produce flat steel for high end applications enabling the company to expand its product portfolio in the ship building, defence equipment, energy & power, infrastructure, and aviation sectors. It will also consolidate Tata Steel's leadership position in the domestic automotive segment.
There was a drop in realisations from steel sales across the group as steel prices slid to 10-year lows. However, despite these challenges, the consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased in Q4 March 2016 on the back of higher deliveries and better operating margins in India, cost benefits from European restructuring and improved performance of the South East Asia operations.
The company continued to divest its non-core assets and raised Rs 4478 crore through monetisation of same.
Given the challenging situation faced in Europe, the company has taken several steps to restructure the European operations. Tata Steel UK signed an agreement with Greybull Capital to sell its Long Products Europe business. The deal will be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain Government approvals and the satisfactory completion of financing arrangements. The Tata Steel Europe board under the advise of the Tata Steel board is actively reviewing all options for the Tata Steel UK Business including a potential sale of the business.
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