Markets turn positive; Nifty reclaims 8,200

Markets staged a recovery in late trades led by auto major Tata Motors

Benchmark share indices recovered from their day's low in late trades with Tata Motors and Axis Bank leading the gains.

At 2:40pm, the S&P BSE Sensex was up 71 points at 26,785 and the Nifty50 was up 20 points at 8,200.

Tata Motors was among the top gainers on the back of robust sales in May while Axis Bank was up over 1% after the RBI recently approved higher foreign investment limit.

Coal India emerged as the top gainer up over 3% amid encouraging production and sales in May while talk of the government planning to initiate buyback of shares also aided sentiment.
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(Updated at 1:54pm)
Benchmark indices continue to maintain subdued trends with selling among defensives stocks and metal shares leading the fall. However, the downside is limited due to buying in Coal India and select auto shares.

Besides, participants will keenly watch out for the European Central Bank (ECB) and Organization of the Petroleum Exporting Countries (OPEC) meet scheduled today.

At 13:54 pm, the S&P BSE Sensex has shed 29 points to quote at 26,685 and the Nifty has dipped 11 points to trade at 8,169. Among broader markets, BSE Midcap index has gained by 0.2% while BSE Smallcap index is marginally down.

Reversing its three-day downward trend, the rupee today recovered by 9 paise to 67.36 against the US dollar in early trade on fresh selling of the American currency by exporters.

Oil prices were steady on Thursday on mixed market signals ahead of an OPEC meeting in Vienna, which analysts said was not expected to result in restrictions on crude output.

In overseas stock markets, Japanese stocks edged lower as the yen strengthened against the dollar. The Nikkei 225 Average was currently off 2.35%. A stronger yen hurts the competitiveness of Japanese exporters.

 

Back home, 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.

Among key stocks, FMCG majors like ITC and HUL are down almost 2%.

Tata Motors reported a 1% growth in sales at 40,071 units in May compared with 39,496 in the same month last year. The stock has gained 1%.

Shares of Coal India have gained over 3%. The Ministry of Coal has released Rs 210.33 crore as upfront payment to states towards auction of coal blocks.

Tata Steel UK today said it has completed the sale of its 4.5-million-tonne of long products division to Greybull Capital. The stock has gained almost 1%.

Among other shares, Kajaria Ceramics has moved higher 4% to Rs 1,150, also its record high on the National Stock Exchange (NSE), after the company announced that board will meet on Monday, June 6, to consider stock split of equity shares of the company of face value of Rs 2 each into Re 1 each.

Lovable Lingerie has rallied 10% to Rs 278 on the BSE amid heavy volumes in an otherwise subdued market.

Tree House Education & Accessories has fallen to its fresh 52-week low of Rs 58 on the BSE in intra-day trade on Thursday after the company announced that Zee Learn has decided to keep on hold the scheme of amalgamation of the company as per the share exchange ratio agreed upon.