1. Sensex gains 46 points on GDP data, Nifty ends tad below 8,180; PSU Banks fall

Sensex gains 46 points on GDP data, Nifty ends tad below 8,180; PSU Banks fall

The Sensex at the Bombay Stock Exchange (BSE) and Nifty at the National Stock Exchange (NSE) ended in green on Wednesday due to increased buying by funds and investors driven by better-than-expected GDP data.

By: | Updated: June 1, 2016 5:13 PM
bse sensex nse nifty The Sensex at the Bombay Stock Exchange (BSE) and Nifty at the National Stock Exchange (NSE) ended in green on Wednesday due to increased buying by funds and investors driven by better-than-expected GDP data.

3.30 pm: The Sensex at the Bombay Stock Exchange (BSE) and Nifty at the National Stock Exchange (NSE) ended in green on Wednesday due to increased buying by funds and investors driven by better-than-expected GDP data. Sensex closed 45.97 points up at 26,713.93, while Nifty settled 19.85 points up at 8,179.95.

The Nikkei/Markit India Manufacturing Purchasing Managers Index (PMI) – a composite indicator of manufacturing sector performance, stood at 50.7 in May as against 50.5 in April indicating an uptick in the manufacturing data. Sentiments got boost after the report that India’s GDP grew 7.9 per cent in the January-March quarter of 2015-16, taking the overall economic growth to a five-year high of 7.6 per cent for the entire fiscal. Sentiments was also buoyed as the production of eight core sectors jumped 8.5 per cent in April on the back of pick-up in output of refinery products, fertilisers, steel, cement and electricity.

In the 50-share index, Adani Ports, Asian Paints, Bharti Airtel, ITC and Bharti Infratel gained between 2.65 per cent and 5.15 per cent. On the other hand, State Bank of India, Tata Motors, Bank of Baroda, Cipla and Tata Motors DVR gained between 2.01 per cent and 3.11 per cent.

Jayant Manglik, president, retail distribution, Religare Securities said, “Better-than-expected GDP numbers supported market sentiments but profit taking especially in banking and auto heavyweights at higher level capped upside till the end.”

On the sectoral front, shares of state-run oil marketing companies such as BPCL and IOC edged higher following a hike in petrol and diesel prices. On the flip side, banking counter remained under pressure after private agency said that PSU banks unlikely to achieve FY17 loan recovery targets. Shares of aviation companies edged lower after oil marketing companies announced hike in aviation turbine fuel by over 9 per cent from June 1, 2016. Aviation Turbine Fuel (Domestic) has been hiked to 9.2 per cent to Rs 46,729.48 in Delhi effective from June 1 compared with Rs 42,784.01 last month.

For upcoming trading session, Rohit Gadia, founder & CEO, CapitalVia Global Research said, “Important support for Nifty is at 8,150 and a move below this level trader should book profit from the existing long position. In such scenario trader is also advise to re-enter into the market again around 8,000.”

Asian equity markets ended mostly lower on Wednesday as oil extended overnight losses, the yen strengthened and a slew of data painted a mixed picture of regional economies.

3.18 pm: Meanwhile, Nomura on Wednesday marked down India’s GDP growth forecast marginally to 7.7 per cent for the current fiscal, from 7.8 per cent earlier, saying there is still no sign of an export or private capex turnaround.

3.03 pm: Steel Strips Wheels jumped over 2 per cent after it reported 13 per cent growth in its total wheel rim sales to 11.52 lakh in May 2016 as compared to 10.20 lakh in May 2015. In terms of value, the company has achieved gross turnover of Rs 125.47 crore in May 2016 as compared to Rs 108.18 crore in May 2015, recording a growth of 16 per cent and achieved a net turnover of Rs 112.61 crore in May 2016 as against Rs 97.19 crore in May 2015, recorded a growth of 16 per cent.

2.24 pm: SML Isuzu was trading 5 per cent up after it reported 37.3 per cent rise in May sales. The company has sold 1,929 vehicles during May, 2016 against 1,405 vehicles sold in May, 2015. The company had sold 1,404 vehicles during April, 2016 as against 876 vehicles sold in April, 2015.

2.08 pm: Sensex was trading 110 points up at 26,778. In the 30-share index, Adani Ports, Coal India, Asian Paints were trading higher by 5.27 per cent, 3.36 per cent and 2.50 per cent, respectively.

1.54 pm: Steel pipe maker Jindal Saw on Wednesday reported a 10 per cent growth in standalone net profit at Rs 106.17 crore for the quarter ended March 31, 2016. The firm, part of the OP Jindal Group, had clocked a net profit of Rs 96.38 crore in the year-ago period. Shares of Jindal Saw were trading 10.26 per cent up at Rs 44.60.

1.47 pm: DLF was trading 1.58 per cent up at Rs 131.90. Read more: DLF shares could surge 50% in 2 years, is it a good bet?

1.11 pm: RCom was up 6 per cent at Rs 49.80 on the National Stock Exchange (NSE) after the foreign institutional investors (FII) bought nearly 1 per cent stake in Anil Ambani Group telecom company for about Rs 87 crore through open market. Sensex was up 92 points at 26,760.

12.45 pm: Shares of CMI Ltd gained as much as 2 per cent intraday after the company on Tuesday reported 157.40 per cent rise in net profit figures for the quarter ended March 31, 2016 against Rs 2.07 crore in the corresponding quarter a year ago. Gross sales of the company jumped 81.94 per cent year-on-year to Rs 71.24 crore during the quarter under review.

12.41 pm: Reserve Bank allowed Axis Bank to raise foreign shareholding to up to 62 per cent, from the earlier limit of 49 per cent. Shares of the bank were trading 0.70 per cent up at Rs 519.20. Sensex was up 71 points at 26,739.

12.11 pm: Great Eastern Shipping Company shares were trading higher after it delivered its 1999 built Aframax Crude Carrier ‘Jag Laxmi’ to the buyers. The vessel was contracted for sale in April 2016. The scrip was trading 0.37 per cent up at Rs 310.

12.01 pm: Vakrangee has entered into partnership with Aramex India, a leading global provider of logistics and transportations solutions. With this partnership, the company has added another essential and widely used service to the basket of services that are being offered through its last-mile retail outlets known as ‘Vakrangee Kendra’. Partnership with Aramex will allow the company to offer convenient access to domestic as well as international courier services at competitive prices to citizens in their neighborhood. Shares of the company were trading 0.75 per cent up at Rs 180.50. Sensex was up 90 points at 26,757. Nifty was trading 25.90 points up at 8,186.

11.30 am: In order to align the domestic rates of the automobile fuels with global prices, the PSU Oil Marketing Companies (OMCs) have once again increased prices of petrol by Rs 2.58 per litre and diesel rates by Rs 2.26 per litre, effective from the midnight of May 31 and June 1. OMCs were trading higher.

10.45 am: Dewan Housing Finance Corporation shares were trading nearly 2 per cent up at Rs 202.30. The scrip gained after it proposed to issue Secured Non-Convertible Redeemable Debentures at par aggregating to Rs 250 crore on Private Placement basis, pursuant to special resolution passed by the shareholders of the company at its Annual General Meeting held on July 23, 2015.

10.10 am: Reversing its two-day downward trend, the rupee recovered by 5 paise to 67.21 against the US dollar in early trade at the Interbank Foreign Exchange market on selling of the American currency by exporters and banks.

10.02 am: Maruti Suzki shares gain after the company announced that it will resume production of vehicles at its Gurgaon facilities from June 1. Resumption of production at the Manesar plant may take more time. The Gurgaon plant has a capacity of 700,000 vehicles a year. Manesar is bigger at 800,000 units. Sensex was up 168 points at 26,836. Nifty was up 46.60 points at 8,206.

9.52 am: Meanwhile, aviation turbine fuel hiked by 9.2 per cent to Rs 46,729.48 per Kl. SpiceJet shares was up 0.66 per cent in the morning trade while IndiGo and Jet Airways were down by 1.96 per cent and 1.67 per cent, respectively. Sensex was up 126 points at 26794. Nifty was trading 37.20 points up at 8,197. Read more

9.17 am: Sensex was trading 68 points up at 26,736.59, while Nifty was up 20.25 points at 8,180.35. Axis Bank shares advanced over 2 per cent in the early trade.

9.15 am: The BSE Sensex opened 16.50 points, or 0.06 per cent, up at 26,684.46, while Nifty 50 index opened 19.10 points up at 8,179.20.

8.09 am: The BSE Sensex and NSE Nifty are likely to open higher on Wednesday tracking SGX Nifty and mixed global cues. Firm GDP data which came after market hours on Tuesday will further support market sentiments.

Gaining momentum, economy grew by 7.9 per cent in March quarter to consolidate India’s position as the fastest growing major economy with a five-year high growth rate of 7.6 per cent for the full fiscal on robust manufacturing growth.

Asian peers, Hang Seng and Shanghai were up by 0.04 per cent and 0.11 per cent, respectively, in the morning trade. However, Nikkei was trading down by 0.53 per cent.

The Dow shed 0.5 per cent and the S&P 500 dipped 0.1 per cent overnight as energy shares weakened in wake of a slip in oil prices and offset a rise in safe-haven utilities.

Stocks in focus:

Oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation will also remain in limelight after they hike petrol and diesel prices last night.

Healthcare services provider Narayana Hrudayalaya on Tuesday reported a net profit of Rs 3.20 crore for the quarter ended March 31. The company reported a net profit of Rs 0.0469 crore in the corresponding period of the previous year.

Steel pipe maker Jindal Saw reported a 10 per cent growth in standalone net profit at Rs 106.17 crore for the quarter ended March 31, 2016. The firm, part of the OP Jindal Group, had clocked a net profit of Rs 96.38 crore in the year-ago period.

Axis Bank: Reserve Bank has allowed Axis Bank to raise foreign shareholding to up to 62 per cent, from the earlier limit of 49 per cent. For more stocks in focus click here.

(With agency inputs)

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