Cigarette stocks nudge higher

Key equity benchmark indices hovered near the flat line in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex was up 1.87 points or 0.01% at 31,147.67. The Nifty 50 index declined 5.55 points or 0.06% at 9,615.70.

Key indices witnessed initial volatility before hovering near the flat line till morning trade on softer global cues and amid weak gross domestic product (GDP) data.

Indices hovered with small gains in mid-morning trade before once again hovering around the flat line in early afternoon trade. Fresh selling emerged in afternoon trade, which dragged the key indices lower. Later, indices came off the day's low and hovered near the flat line.

Among other indices, the S&P BSE Mid-Cap index rose 0.36%. The S&P BSE Small-Cap index advanced 0.98%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,365 shares rose and 1,211 shares declined. A total of 165 shares were unchanged.

Cigarette stocks gained. Godfrey Phillips India (up 2.24%), ITC (up 1.27%), Golden Tobacco (up 0.64%) and VST Industries (up 0.32%) advanced.

Jewellery stocks nudged higher. Gitanjali Gems (up 3.4%), TBZ (up 0.43%), Rajesh Exports (up 0.18%), Tara Jewels (up 0.17%) and PC Jeweller (up 0.08%) gained. Titan Company (down 1.5%) edged lower.

Mahindra & Mahindra (M&M) advanced 0.86% at Rs 1,428.50 after the company's total tractor sales rose 11% to 25,599 units in May 2017 over May 2016. Domestic sales grew by 11% to 24,575 units in May 2017 over May 2016. Exports rose 18% to 1,024 units.

The company's total auto sales rose 3% to 41,895 units in May 2017 over May 2016. Total domestic sales grew by 11% to 40,602 units in May 2017 over May 2016. Exports fell 68% to 1,293 units. The announcement was made during market hours today, 1 June 2017.

Meanwhile, data released by Markit Economics during market hours today, 1 June 2017 showed that Indian manufacturing sector stayed in expansion mode in May as a further upturn in new business supported output growth. That said, the headline Nikkei India Manufacturing Purchasing Managers' Index (PMI) dropped to a 3-month low of 51.6 in May from 52.5 in April.

India's Gross Domestic Product (GDP) rose at moderated pace of 6.1% in Q4 March 2017, which is the lowest pace of growth in last nine quarters. The GDP growth decelerated sharply from 7% growth recorded in the preceding last quarter and 8.7% surge posted in the corresponding quarter last year. The data was released by the government after market hours yesterday, 31 May 2017.

The Eight core infrastructure industries have showed 2.5% growth in output for April 2017 over April 2016. Its cumulative output growth had stood at 4.8% in FY 2017. The Base Year of the Index of Eight Core Industries has been revised from the year 2004-05 to 2011-12 from April 2017. The shift is in line with the new base year of Index of Industrial Production (IIP). The data was released by the government after market hours yesterday, 31 May 2017.

Overseas, European markets moved higher as investors eyed oil prices and continued to monitor politics in the region with U.K. elections just a week away.

Asian stocks witnessed mixed trend after weaker-than-expected Caixin manufacturing PMI data. Caixin PMI data from China for the month of May came in at 49.6, below market estimates.

US equities closed lower yesterday, 31 May 2017, as a drop in the financial sector pressured stocks.

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