Indices close lackluster session with small losses

Key benchmark indices registered small losses in a lackluster trading session. The barometer index, the S&P BSE Sensex lost 13.60 points or 0.04% at 31,145.80, as per the provisional closing data. The Nifty 50 index declined 3.30 points or 0.03% at 9,621.25, as per the provisional closing data.

Lackluster trading was witnessed almost for the entire trading session with exception of brief moderate gains seen by the indices in mid-afternoon trade, during which the two key indices hit record high.

The Sensex rose 95.88 points or 0.3% at the day's high of 31,255.28 in mid-afternoon trade, a record high for the index. It lost 51.92 points or 0.16% at the day's low of 31,107.48 in early trade.

The Nifty rose 25.05 points or 0.26% at the day's high of 9,649.60 in mid-afternoon trade, a record high for the index. It lost 15.30 points or 0.15% at the day's low of 9,609.25 in mid-morning trade.

The S&P BSE Mid-Cap index provisionally rose 0.94%. The S&P BSE Small-Cap index provisionally advanced 1.05%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,384 shares rose and 1,284 shares declined. A total of 183 shares were unchanged.

The total turnover on BSE amounted to Rs 4055.33 crore, higher than turnover of Rs 3473.48 crore registered during the previous trading session.

Aviation stocks surged amid decline in global crude oil prices. InterGlobe Aviation (up 4.09%), SpiceJet (up 4.39%) and Jet Airways (India) (up 3.91%) advanced. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.

In global commodities markets, Brent crude oil futures for July settlement were down $1.05 a barrel at $50.79 a barrel.

Shares of oil exploration & production (E&P) companies declined tracking fall in global crude oil prices. Oil India (down 2.18%), ONGC (down 0.81%) and Reliance Industries (down 1.57%) edged lower. Lower crude oil prices would result in lower realization from crude sales for oil E&P firms.

Shares of state-run oil marketing companies (PSU OMCs) edged higher on decline in crude oil prices. IOCL (up 3.48%) and BPCL (up 0.51%) advanced. HPCL (down 0.44%) edged lower.

Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. Meanwhile, the rupee was also trading higher against the dollar. A strong rupee against the dollar benefits PSU OMCs as it reduces the cost of crude imports. The government has already decontrolled pricing of petrol and diesel.

In the foreign exchange market, the partially convertible rupee was currently hovering at 64.5225, compared with its close of 64.665 during the previous trading session.

Talwalkars Better Value Fitness jumped 6.53% to Rs 286.50 after consolidated net profit rose 21.79% to Rs 24.6 crore on 12.45% rise in net total income from operations to Rs 89.95 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 30 May 2017. The stock had risen 0.98% to Rs 268.95 yesterday, 30 May 2017, ahead of results.

On the macro front, a press release dated 31 May 2017 issued by the India Meteorological Department (IMD) stated that conditions are favourable for further advance of southwest monsoon into remaining parts of south Arabian Sea, Lakshadweep area and Kerala, some parts of central Arabian Sea, coastal & south interior Karnataka, some more parts of Tamilnadu, southwest, west central & east central & east central Bay of Bengal, most parts of northeast Bay of Bengal and some more parts of northeastern states during next 2-3 days.

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.

Overseas, European and Asian stocks were mixed. China markets which re-opened after a long holiday were in green.

According to the polling group YouGov, Prime Minister Theresa May's Conservative party might lose 20 seats at the 8 June 2017 vote, thus falling 16 seats short of an overall majority in the 650-seat chamber.

US equities closed lower yesterday, 30 May 2017 as investors digested key economic data, but a rise in tech stocks helped cap losses.

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