Key benchmark indices trimmed losses after extending intraday slide in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was down 36.25 points or 0.14% at 26,677.68. The Nifty 50 index was currently down 13.35 points or 0.16% at 8,166.60. The market breadth indicating the overall health of the market was negative. On BSE, 1,016 shares rose and 1,207 shares declined. A total of 122 shares were unchanged. The BSE Mid-Cap index was currently up 0.27%. The BSE Small-Cap index was currently up 0.03%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged higher after the latest data signalled the US economy is recovering. Japanese stocks edged lower as the yen strengthened against the dollar. The Nikkei 225 Average settled 2.32% lower. A stronger yen hurts the competitiveness of Japanese exporters. Japan's Prime Minister Shinzo Abe yesterday, 1 June 2016, said that a sales-tax increase will be postponed until 2019 from April 2017.
US stocks eked out minuscule gains yesterday, 1 June 2016, following an intraday recovery in oil prices and better-than-expected manufacturing data. The Institute for Supply Management said its manufacturing index rose to 51.3% last month from 50.8% in April. The data showed that manufacturers are expanding their businesses at a very slow pace.
Realty stocks declined. Unitech (down 2.24%), D B Realty (down 2.21%), Prestige Estates Projects (down 1.35%), Indiabulls Real Estate (down 1.48%), Housing Development and Infrastructure (down 1.43%) and Godrej Properties (down 0.26%) edged lower. DLF (up 0.11%), Oberoi Realty (up 0.82%) and Sobha (up 0.72%) edged higher.
Telecom stocks edged higher. Reliance Communications (up 2.54%), Idea Cellular (up 2.17%), Tata Teleservices (Maharashtra) (up 0.16%) and Mahanagar Telephone Nigam (up 1.04%) rose.
Bharti Airtel rose 0.91% at Rs 366.10. Airtel Payments Bank has announced the appointment of Shashi Arora as the CEO & Managing Director of the bank, subject to the approval of the Reserve Bank of India (RBI). He will replace Manish Khera, CEO, who has decided to pursue his entrepreneurial journey, Bharti Airtel said after trading hours yesterday, 1 June 2016. On 11 April 2016, Airtel Payments Bank received a payments bank license from RBI. The company plans to start rolling out its banking network in Q2 September 2016.
Bharti Infratel was off 0.87%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Shares of state-run coal mining giant Coal India were up 3.38% at Rs 306.95 after the company's announcement that it has achieved 95% of targeted production at 42.58 million tonnes in May 2016. Coal India and its subsidiaries on provisional basis achieved 89% of targeted offtake at 45.53 million tonnes in May 2016. The announcement was made after market hours yesterday, 1 June 2016.
Kajaria Ceramics rose 2.44% at Rs 1,135.05 after the company said that its board of directors will meet on 16 June 2016 to consider and approve a proposal for 2-for-1 stock split. The announcement was made after market hours yesterday, 1 June 2016.
Punj Lloyd dropped 4.69% at Rs 19.30 after the UK's Commercial Court ordered the company and its subsidiary to pay $26.17 million plus summary assessment costs amounting to 75000 pounds to International Finance Corporation (IFC) towards the latter's claims. The company said it is considering various legal options and shall take appropriate steps in respect of such order. The announcement was made after trading hours yesterday, 1 June 2016.
Meanwhile, the central government yesterday, 1 June 2016, announced increase ranging from 1.5% to 9.2% in the minimum support prices (MSPs) of Kharif crops for the 2016-17 season. The MSPs include a bonus of Rs 425 per quintal for pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs 200 per quintal for Sesamum and a bonus of Rs 100 per quintal for other kharif oilseeds namely, Groundnut-in-shell, Sunflowerseed, Soyabean, and Nigerseed. The government said in a statement that the decision to offer bonus over MSP on pulses and oilseeds is aimed at giving a strong price signal to farmers to increase acreage and invest for increase in productivity of these crops. There is an increasing gap between the demand and domestic supply of pulses and oilseeds and the reliance on import is increasing. The increase in cultivation of leguminous pulses and oilseeds will also have additional environmental benefits as these crops are less water consuming and help in nitrogen fixation in the soil.
With a view to stabilize prices of pulses, the government is also creating buffer stocks of pulses through both domestic procurement and import.
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