Metal stocks witness a mixed trend

The movement for the two key benchmark indices remained confined to a narrow range in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was down 75.45 points or 0.28% at 26,650.15. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 10.80 points or 0.13% at 8,167.70. The market breadth indicating the overall health of the market was weak. On BSE, 829 shares rose and 1,411 shares declined. A total of 140 shares were unchanged. The BSE Mid-Cap index was currently down 0.16%. The BSE Small-Cap index was currently down 0.26%. The losses for both these indices were lower than the Sensex's decline in percentage terms.

In overseas stock markets, Chinese stocks edged higher on speculation that MSCI Inc., the global index provider, will soon add mainland-traded Chinese stocks, so-called A-shares, in its Emerging Markets Index. In mainland China, the Shanghai Composite index was currently up 3.12%. In Hong Kong, the Hang Seng index was currently up 1.62%. MSCI's inclusion of A-shares into the index will channel billions in passive asset-management money into China. On 27 May 2016, the Shanghai and Shenzhen stock exchanges announced rules on share trading suspensions, removing one potential roadblock for inclusion of Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes. MSCI said in March a decision to include 5 percent of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again. MSCI will reportedly take a call in mid-June 2016 whether to add Chinese shares to its global benchmark indexes.

Japanese shares edged higher after the latest data showed industrial output in April rose for the second month. The Nikkei 225 Average closed 0.98% higher.

Metal stocks witnessed a mixed trend. National Aluminium Company (up 2.03%), Tata Steel (up 1.67%), JSW Steel (up 1.18%), Vedanta (up 1.32%) and Hindustan Zinc (up 0.38%) edged higher. Steel Authority of India (down 1.51%), Jindal Steel & Power (down 1.29%) and NMDC (down 0.78%) edged lower.

Copper edged lower in the global commodities markets. High Grade Copper for July 2016 delivery was currently down 0.26% at $2.1085 per pound on the COMEX.

Hindalco Industries rose 3.5% to Rs 106.50, with the stock extending strong gains registered during the previous trading session triggered by the company's strong Q4 March 2016 results. The stock had surged 12.03% to settle at Rs 102.90 yesterday, 30 May 2016. Hindalco Industries' net profit jumped 123.36% to Rs 356.33 crore on 7.6% fall in total income to Rs 8871.66 crore in Q4 March 2016 over Q4 March 2015.

Hindustan Copper lost 0.44% to Rs 45.60 after net profit declined 38.8% to Rs 16.29 crore on 27.6% growth in net sales to Rs 324.22 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016.

Telecom stocks declined. Bharti Airtel (down 1.09%), Reliance Communications (down 2.76%), Mahanagar Telephone Nigam (down 4.24%), Tata Teleservices (Maharashtra) (down 1.38%) edged lower. Idea Cellular (up 1.19%) edged higher.

Bharti Infratel was off 0.57%. Bharti Infratel is a telecom tower arm of Bharti Airtel.

Shree Renuka Sugars rose 3.13% at Rs 14.17 after net profit spurted 5020.93% to Rs 220.20 crore on 7.98% rise in total income to Rs 1818.40 crore in Q4 March 2016 over Q4 March 2015. In a separate announcement made after trading hours yesterday, 30 May 2016, Shree Renuka Sugars said that its board has approved voluntarily granting of an option to the lenders of the company to convert a part of the loans granted/to be granted to the company into equity shares of Re 1 each in the company, subject to maximum of 9.28 crore equity shares, which is equivalent to 10% of the present equity share capital of the company, at Rs 16.56 per equity share or the price as per the regulations prescribed by Securities and Exchange Board of India (Sebi), whichever is higher. The approval of the shareholders for this purpose will be sought through postal ballot.

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