Auto stocks nudge higher

Key benchmark indices hovered in a narrow range with small gains in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex was up 55.31 points or 0.18% at 31,164.59. The Nifty 50 index rose 11.60 points or 0.12% at 9,616.50. Hopes of timely arrival of monsoon rains aided small gains on the bourses.

Private weather forecasting agency Skymet Weather yesterday, 29 May 2017 stated that as the southwest monsoon nears Peninsular India, most states of the region are witnessing a good spell of pre-monsoon activities.

Many parts of Kerala, Karnataka, and Tamil Nadu have been witnessing rains from about last 24 hours and it is predicted that these rains are likely to continue over the states going forward, it said.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Back to market, the S&P BSE Mid-Cap index was up 0.59%, outperforming the Sensex. The S&P BSE Small-Cap index rose 0.08%, underperforming the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,414 shares declined and 986 shares rose. A total of 143 shares were unchanged.

Auto stocks edged higher. Ashok Leyland (up 1.2%), Tata Motors (up 0.85%), Hero MotoCorp (up 0.28%) and Bajaj Auto (up 0.24%) rose. Eicher Motors (down 1%) and Maruti Suzuki India (down 0.2%) edged lower.

Mahindra & Mahindra (M&M) rose 0.52% at Rs 1,357.95 ahead of the company's Q4 earnings today, 30 May 2017.

Aviation stocks fell. Jet Airways (India) (down 2.73%), InterGlobe Aviation (down 2.41%) and SpiceJet (down 0.79%) declined.

BPCL dropped 3.19% at Rs 731.85 after net profit fell 12.96% to Rs 1841.68 crore on 24.17% growth in total income to Rs 66685.61 crore in Q4 March 2017 over Q4 March 2016. The net under-recovery absorbed by the company was nil in Q4 March 2017 and also in Q4 March 2016 on sale of sensitive petroleum products. The result was announced after market hours yesterday, 29 May 2017.

The average gross refining margin in Q4 March 2017 fell to $6.01 per barrel in Q4 March 2017 from $6.3 per barrel in Q4 March 2016. BPCL's board recommended 1:2 bonus issue of shares.

Overseas, Asian stocks witnessed a mixed trend. Markets in Hong Kong and China were closed for a public holiday. US stock markets were shut yesterday, 29 May 2017 for Memorial Day holiday.

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