Volatility ruled the roost in mid-morning trade as the key benchmark indices once again gained strength after trimming gains in morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 135.32 points or 0.39% at 35,041.43. The Nifty 50 index was up 37.10 points or 0.35% at 10,651.45. The Sensex was trading above the psychological 35,000 level after moving above and below that level in intraday trade. Shares from IT and telecom sectors saw mixed trend. 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.
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 0.19%. The S&P BSE Small-Cap index was off 0.16%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,002 shares rose and 1,255 shares fell. A total of 120 shares were unchanged.
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.
Back home, ONGC (up 3.36%), HDFC Bank (up 2.25%) and M&M (up 1.49%) edged higher from the Sensex pack.
IT stocks saw mixed trend. Infosys (up 1.24%), Wipro (up 0.65%), HCL Technologies (up 0.79%), Tech Mahindra (up 1.84%) and Mphasis (up 1.89%) rose.
TCS (down 0.85%), Oracle Financial Services Software (down 1.48%), MindTree (down 0.14%), Hexaware Technologies (down 0.22%) fell.
Telecom stocks saw mixed trend. Reliance Communications (up 8.29%), Bharti Airtel (up 0.35%), Idea Cellular (up 0.4%) rose. MTNL (down 0.6%) and Tata Teleservices (Maharashtra) (down 5.05%) fell.
Shares of Bharti Infratel fell 0.18%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Orient Cement rose 9.87% after the company said it has terminated the agreement to acquire two entities from Jaypee group firms. The announcement was made before trading hours today, 31 May 2018.
Orient Cement had entered into a share purchase agreement (SPA) with Jaiprakash Associates (JAL) for acquisition of 74% equity shares of Bhilai Jaypee Cement from JAL. Further, the company entered into a business transfer agreement (BTA) with Jaiprakash Power Ventures (JPVL) and JAL for acquisition of Nigrie Cement Grinding unit, as going concern from JPVL. Each of the SPA and the BTA were executed on 31 May 2017.
Under provisions of the SPA and the BTA, either party is entitled to terminate the agreement if the closing does not take place within expiry of 12 months from date of execution of the SPA and the BTA. Since the closing has not been achieved within said period of 12 months the company has terminated the SPA and the BTA with notice to other parties. Therefore, the SPA and the BTA stand terminated.
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