Indices turn range bound

Domestic indices traded near the day's high with modest gains in mid-afternoon trade. The Nifty traded above the crucial 15,300 mark. Encouraging Q4 earnings and positive global cues boosted investors sentiment.

At 14:24 IST, the barometer index, the S&P BSE Sensex, rose 395 points or 0.78% at 51,033.86. The Nifty 50 index gained 99.85 points or 0.66% at 15,308.80.

In the broader market, the S&P BSE Mid-Cap index fell 0.03% and the S&P BSE Small-Cap index added 0.78%.

Buyers outpaced sellers. On the BSE, 1,926 shares rose and 1,138 shares fell. A total of 140 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 959.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 563.59 crore in the Indian equity market on 25 May 2021, provisional data showed.

Economy:

On Monday, 24 May 2021, the Commerce and Industry Ministry said that Foreign Direct Investments (FDI) in India grew 19% to $59.64 billion during 2020-21 on account of measures taken by the government on the fronts of policy reforms, investment facilitation and ease of doing business. The total FDI, including equity, re-invested earnings and capital, rose 10% to the "highest ever" of $81.72 billion during 2020-21 as against $74.39 billion in 2019-20.

On Tuesday, 25 May 2021, the State Bank of India (SBI) in its "Ecowrap" report stated that India's GDP may have contracted less than earlier estimated in FY21. While the Central Statistics Office (CSO) in February 2021 estimated that the country has contracted by 8% in FY21, SBI now projects the Indian economy actually may have shrank by 7.3%.

SBI report said: "Based on quarterly GDP numbers in FY21 and full year FY21 GDP estimates, Q4 GDP was projected to reveal a contraction of 1.1%. Based on SBI Nowcasting model the forecasted GDP growth for Q4 would be around 1.3% (with downward bias). We now expect GDP decline for the full year to be around -7.3% (our earlier prediction: -7.4%)."

Buzzing Index:

The Nifty Metal index slipped 1.6% to 5,017.65. The index rose 0.61% in the previous session.

Jindal Steel & Power (down 3.88%), Steel Authority of India (down 3.23%), JSW Steel (down 2.55%), Hindalco Industries (down 2.4%) and Tata Steel (down 2.16%), NMDC (down 1.95%), National Aluminium Company (down 1.45%), Hindustan Zinc (down 1.2%) and Vedanta (down 0.35%) declined.

Numbers to Track:

MCX Gold futures for 4 June 2021 settlement rose 0.44% to Rs 49,082.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 89.705.

In the commodities market, Brent crude for July 2021 settlement rose 3 cents to $68.53 a barrel. The contract increased 0.28% to settle at $68.65 in the previous trading session.

Powered by Capital Market - Live News