Markets end flat on poor macroeconomic data; Smallcap buck the trend, up 1%

Adani Ports, HUL and L&T gained the most, while ICICI Bank, ONGC, GAIL and Tata Steel lost the most

Markets ended the day flat after a day of choppy trade with Nifty50 hovering around the 9,600- mark as investors stayed on edge after May factory output and Q4 GDP growth entered the slow lane.  
 
The factory output growth in the country fell in May, after rising for three straight months, due to softer demand and slower export. The Nikkei Manufacturing Purchasing Managers' Index (PMI) fell to 51.6 in May from April's 52.5.
 
India’s gross domestic product (GDP) growth fell to 6.1% in the March-quarter primarily as demonetisation adversely affected economic activity. I n FY17, economic growth was at a three-year low of 7.1%. The previous year, it was 8%.

 

Though, the Finance Minister Arun Jaitley in a press conference, earlier in the day, downplayed the impact on economic growth of the government's decision last November to scrap most of the cash in circulation.
 
"I do believe that in the current global situation, a 7-8% growth, which at the moment is the Indian normal, is very reasonable," Jaitley said.
 
The S&P BSE Sensex settled the day at 31,137, down 8 points, while the broader Nifty50 ended at 9,616, down 5 points.
 
In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain 0.5% and 1%, respectively.

 
Meanwhile, the central bank is expected to leave rates unchanged at 6.25% in its June meeting, the Monetary Policy Committee will adopt a less hawkish tone in its statement, according to a Reuters poll of 60 economists.

"Nifty settled marginally lower in a volatile trading session, indicating some consolidation after the recent up move. However, the broader market indices continued to outperform and closed with decent gains. The sectoral indices exhibited a mixed trend with healthy buying seen in FMCG, Healthcare and Capital Goods and selling pressure in Metals, Oil & Gas and Banks," said Jayant Manglik, President, Retail Distribution, Religare Securities in a note.

 
Buzzing Stocks
 
Extending gains for third straight trading session, the Nifty Pharma index gained 5% at intra-day but it later erased some gains to end 1% higher.
 
Adani Ports, HUL, L&T and Sun Pharma gained the most, while ICICI Bank, ONGC, GAIL and Tata Steel lost the most.
 
Maruti Suzuki lost 1% even as sales for the country's largest car maker grew 11.3% (y-o-y). The company sold 1.37 lakh units in May as compared to 1.23 lakh units in the corresponding month of last year.
 
Hindustan Unilever (HUL) hit a new high of Rs 1,098.7, up 2.9% on the BSE; extending its 8% gain of the past nine trading sessions, after the country’s largest consumer goods company, reported a better-than-expected March-quarter result (Q4FY17). The stock ended 2.5% higher.

 
Global Markets
 
Globally, European markets opened mixed on Thursday as investors eyed oil prices and continued to monitor politics in the region with UK elections just a week away.
 
MSCI's broadest index of Asia-Pacific shares outside Japan was flat after four sessions of losses as investors took profits after stocks hit a two-year high last week and as economic and geopolitical concerns continued to weigh on sentiment.
 
Chinese shares fell as much as 0.5% after a private survey showed the country's manufacturing activity contracted in May for the first time in 11 months.
 
South Korea's KOSPI fell 0.1% and the Korean won fell 0.2% to 1,120.67 won to the dollar after data showing factory activity shrank for the 10th straight month.