Firmness prevailed on the bourses in early afternoon trade on steady buying demand in index pivotals. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 344.01 points or 0.87% at 40,058.21. The Nifty 50 index was up 98 points or 0.82% at 12,020.80. Shares of state-run oil marketing companies rose after crude oil prices dropped in the international commodity market.
Domestic stocks drifted higher in early trade on buying demand in index pivotals. Stocks extended gains in morning trade after an initial upmove. Key indices marched ahead and hit fresh intraday high in mid-morning trade. The Sensex hit day's high above the psychological 40,000 level and the Nifty hit day's high above the psychological 12,000 level.
The S&P BSE Mid-Cap index was up 0.74%. The S&P BSE Small-Cap index was up 0.36.%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1051 shares rose and 1247 shares fell. A total of 141 shares were unchanged.
Shares of state-run oil marketing companies rose after crude oil prices dropped in the international commodity market. BPCL (up 1.39%), HPCL (up 0.88%) and Indian Oil Corporation (up 2.08%) advanced.
Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Crude oil prices dropped amid stalling demand as trade wars fanned fears of a global economic slowdown. Brent for August 2019 settlement was down 72 cents at $61.27 a barrel. The contract fell $3.34 a barrel or 5.11% to settle at $61.99 a barrel during the previous trading session.
Ultratech Cement slipped 0.05%. Ultratech Cement said that it is proposing to issue unsecured redeemable non-convertible debentures (NCDs) amounting to Rs 250 crore on private placement basis. The tenure of the NCD is 5 years. The deemed date of allotment is 4 June 2019 and date of maturity is 4 June 2024. Interest offered for the NCD is 7.64% per annum. The announcement was made after market hours on Friday, 31 May 2019.
Escorts rose 1.27%. Escorts announced an 18% fall in the total tractor sales to 6,827 units in May 2019 over May 2018. The total domestic tractor sales declined 19.8% to 6,488 units. The total exports were up by 42.4% to 339 units. The announcement was made on Saturday, 1 June 2019.
SML Isuzu rose 3.02%. SML Isuzu reported a 17.1% increase in total sales to 1,689 units in May 2019 over May 2018. The announcement was made on Saturday, 1 June 2019.
On the macro front, India's economic growth rate slowed to five-year low of 5.8% in January-March 2018-19, due to slackness in agriculture and manufacturing sectors, official data stated. The Central Statistics Office also revealed that GDP growth during the 2018-19 fiscal stood at 6.8%, lower than 7.2% in the previous financial year. The data was released after market hours on Friday, 31 May 2019.
The total gross GST revenue collected in the month of May 2019 is Rs 1,00,289 crore of which CGST is Rs 17,811 crore, SGST is Rs 24,462 crore, IGST is Rs 49,891 crore (including Rs 24,875 crore collected on imports) and Cess is Rs 8,125 crore (including Rs 953 crore collected on imports). The revenue in May 2018 was Rs 94,016 crore.
The combined Index of Eight Core Industries stood at 127.5 in April 2019, which was 2.6% higher as compared to the index of April 2018. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
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