Sensex, Nifty sharply pare gains

The indices sharply pared gains and were trading near the flat line in mid-afternoon trade. At 14:28 IST, the barometer index, the S&P BSE Sensex, fell 22.91 points or 0.04% to 50,994.61. The Nifty 50 index was unchanged at 15,301.45

The broader indices outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.38% while the S&P BSE Small-Cap index added 0.42%.

Buyers outpaced sellers. On the BSE, 1,708 shares rose and 1,359 shares fell. A total of 145 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 241.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 438.59 crore in the Indian equity market on 26 May 2021, provisional data showed.

RBI Annual Report 2020-21

The balance sheet size of RBI increased by 6.99% for the year ended 31 March 2021, mainly reflecting its liquidity and foreign exchange operations. From this year onwards, RBI has changed the accounting year to April - March from July-June earlier. Due to this transition, the accounting year 2020-21 was of nine months only, i.e., July 2020 - March 2021. Thus, data is for a period of nine months of 2020-21 compared with 12 months for the previous year.

The size of the balance sheet increased by Rs 3.73 lakh crore, or 6.99%, from Rs 53.35 lakh crore as on 30 June 2020 to Rs 57.08 lakh crore as on 31 March 2021. While income for the year decreased by 10.96%, the expenditure decreased by 63.10%. The year ended with an overall surplus of Rs 99,122 crore as against Rs 57,127.53 crore in the previous year, representing an increase of 73.51%.

Net income for the nine months stood at Rs 99,126 crore. The central bank said a provision of Rs 20,710.12 crore was made and transferred to the Contingency Fund. No provision was made towards the Asset Development Fund (ADF).

The larger surplus transfer came mostly on account of income earned from sales of foreign exchange. The central bank saw a 69% jump in earnings from foreign exchange transaction, which, together with a lower transfer to its contingency fund, allowed for a larger transfer of surplus to the Government.

Buzzing Index:

The Nifty Metal index rose 0.81% to 5,045.10 amid bargain hunting. The index lost 1.86% in the previous session.

Steel Authority of India (up 3.37%), National Aluminium Company (up 2.09%), Tata Steel (up 1.52%), Jindal Steel & Power (up 1.44%) and Hindalco Industries (up 1%), Hindustan Zinc (up 0.69%), JSW Steel (up 0.65%) and NMDC (up 0.51%) climbed.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 72.6325 compared with its previous closing of 72.77.

MCX Gold futures for 4 June 2021 settlement fell 0.17% to Rs 48,701.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 89.977.

The yield on 10-year benchmark federal paper rose to 5.989% as compared to its previous close of 5.972%.

In the commodities market, Brent crude for July 2021 settlement fell 38 cents to $68.35 a barrel. The contract increased 0.32% to settle at $68.87 in the previous trading session.

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