Key equity benchmarks logged strong gains on buying frenzy in index pivotals led by HDFC Bank, HDFC and Infosys. The barometer index, the S&P BSE Sensex, surged 416.27 points or 1.19% at 35,322.38, as per the provisional closing data. The Nifty 50 index surged 121.80 points or 1.15% at 10,736.15, as per the provisional closing data. The Sensex provisionally settled well above the psychological 35,000 level after moving above and below that level in intraday trade. Positive global stocks boosted sentiment.
Domestic stocks drifted higher in early trade on positive Asian stocks. The Sensex regained the psychological 35,000 level in opening trade. Key benchmark indices trimmed gains in morning trade. Volatility ruled the roost as stocks once again gained strength in mid-morning trade. Indices marched higher in afternoon trade. Key equity benchmarks held firm in mid-afternoon trade. Buying frenzy in late trade propelled indices to fresh intraday high.
Trading was highly volatile during the day as traders rolled over positions in the F&O segment from the near month May 2018 series to June 2018 series. The May 2018 F&O contracts expired 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.
Broader market depicted weakness. The S&P BSE Mid-Cap index fell 0.24%. The S&P BSE Small-Cap index fell 0.57%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 993 shares rose and 1,660 shares fell. A total of 135 shares were unchanged.
Adani Ports and Special Economic Zone (up 4.7%), IndusInd Bank (up 3.14%) and M&M (up 3.12%) edged higher from the Sensex pack.
Private sector banking major HDFC Bank advanced 4.36% to Rs 2,136.15
ONGC rose 1.95%. Net profit of ONGC rose 36.3% to Rs 5915.12 crore on 10.4% increase in net sales to Rs 23969.83 crore in Q4 March 2018 over Q4 March 2017. The net realisation for the quarter stood at $66.71 a barrel, compared to $54.91 a barrel during Q4 March 2017. The result was announced after market hours yesterday, 30 May 2018.
Meanwhile, the company's crude oil production, including condensate, dropped by 3% to 6.2 million tonne during the quarter under review, while during the same period last year, it produced 6.39 MT. The yearly production of crude oil also saw a marginal decline of 0.4%.
Overall gas production during the fourth quarter increased by 2.2% to 6.07 billion cubic meter (bcm), while it was seen at 5.94 bcm during the Q4 March 2017. For the entire financial year 2017-2018, the company's gas production increased by 5.8% to 24.61 bcm.
ICICI Bank rose 0.12%. The bank announced that it will start an enquiry into whistleblower complaint. The announcement was made after market hours yesterday, 30 May 2018.
The board of directors, at its meeting held on 29 May 2018, decided to institute an enquiry to be headed by an independent and credible person, to examine and enquire into an anonymous whistle blower complaint, disclosing certain information, alleging in substance that bank's MD & CEO had not adhered to provisions relating to "Code of Conduct" of the bank and legal and regulatory provisions relating to "conflict of interest" over a period of time, as also alleging quid pro quo in the course of her work in dealing with certain customers/borrowers of the bank.
The scope of enquiry would be comprehensive and include all relevant matters arising out of and in the course of examination of the facts and wherever warranted, use of forensics/email reviews and recordal of statements of relevant personnel etc. The enquiry would also cover all connected matters in the course of the investigation to bring the matter to a final close.
In keeping with the Whistle Blower Policy of the bank, the board has mandated its Audit Committee to take all further actions in the matter to operationalize this decision including in particular, appointment of an independent and credible person as head of the enquiry, determining the terms of reference of the enquiry, the period which will be covered by the enquiry etc. The audit committee will also, in consultation with the head of the enquiry, make arrangements to assist him with independent legal and other professional support as may be required.
Ultratech Cement shed 0.18%. 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.
Overseas, most European stocks were trading higher, but trading in May was set to wrap up with auto makers under pressure as the European Union braces for US-imposed tariffs on steel and aluminum. Asian stocks ended higher as elevated concerns over Italy's deepening political crisis showed signs of abating.
China's official nonmanufacturing purchasing managers index, a measure of activity outside factory gates, rose to 54.9 in May from 54.8 in April, the National Bureau of Statistics said on Thursday. An official gauge of China's factory activity rose to an eight-month high in May, due to robust production and demand. The official manufacturing purchasing managers' index climbed to 51.9 from 51.4 in April, according to data from the National Bureau of Statistics released Thursday.
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.
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