Key benchmark indices hovered near day's high in early afternoon trade. At 12:24 IST, the barometer index, the S&P BSE Sensex, was up 143.19 points or 0.41% at 35,049.30. The Nifty 50 index was up 43.30 points or 0.41% at 10,657.65. The Sensex was currently trading above the psychological 35,000 level after moving above and below that level in intraday trade. Pharma shares declined. Positive Asian 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.
Trading could be volatile as traders roll over positions in the F&O segment from the near month May 2018 series to June 2018 series. The May 2018 F&O contracts expire 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.
The S&P BSE Mid-Cap index was off 0.21%. The S&P BSE Small-Cap index was off 0.23%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,017 shares rose and 1,384 shares fell. A total of 134 shares were unchanged.
Shares of oil exploration and production (E&P) companies edged higher. Reliance Industries (up 0.4%), ONGC (up 2.99%) and Oil India (up 0.98%) edged higher.
Among PSU OMCs, HPCL (up 0.42%), BPCL (up 0.42%), and Indian Oil Corporation (up 0.58%) gained.
Pharma shares declined. Glenmark Pharmaceuticals (down 1.18%), Cadila Healthcare (down 0.05%), Cipla (down 0.46%), Dr Reddy's Laboratories (down 0.89%), Lupin (down 0.29%), Sun Pharmaceutical Industries (down 1.37%), Alkem Laboratories (down 1.67%), Aurobindo Pharma (down 0.25%) and Wockhardt (down 0.61%) fell. GlaxoSmithKline Pharmaceuticals (up 1.16%) rose.
Overseas, Asian stocks rose as political turmoil in Italy that had roiled global financial markets showed signs of easing. 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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