Strong market breadth; Nifty above 9450

Key barometers came off day's high in mid-afternoon trade. Auto, banks and metal stocks rallied while pharma stocks lagged. The Nifty held above 9450 level ahead of the F&O expiry. At 14:24 IST, the barometer index, the S&P BSE Sensex jumped 454.32 points or 1.44% at 32,059.09. The Nifty 50 index rallied 143.85 points or 1.54% at 9,458.80.

The broader market was upbeat. The S&P BSE Mid-Cap index gained 1.14% while the S&P BSE Small-Cap index rose 1.16%.

The market breadth was strong. On the BSE, shares 1474 rose and 767 shares fell. A total of 142 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.

The media reported that India's GST Council is likely to meet in the second week of June to discuss the impact of the coronavirus pandemic on the economy of states, among other things.

Foreign portfolio investors (FPIs) sold shares worth Rs 334.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,408.85 crore in the Indian equity market on 27 May, provisional data showed.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.990% compared with previous closing of 5.984% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.76 compared with its previous closing of 75.7125.

In the commodities market, Brent crude for July 2020 settlement was down 99 cents to $33.75 a barrel. The contract declined 3.95% to settle at $34.74 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement rose 0.24% to Rs 46,644.

Stocks in Spotlight:

Vedanta rose 1.94%. India Ratings and Research downgraded rating of the company to IND AA- from previous rating of IND AA with a negative outlook. The ratings agency said that the downgrade reflects likely deterioration in Vedanta's credit profile following a substantial decline in economic activity due to the COVID-19-related lockdown, with the balance sheet leverage remaining elevated in FY21 and FY22. The negative outlook reflects the risk of a further spread of the outbreak, and the resultant global demand shock leading to a prolonged subdued pricing environment. Also, the outlook reflects the elevated risk of refinancing, with material debt repayments coming due at both Vedanta and VRL in FY21 against the backdrop of general risk averseness in debt capital markets towards cyclical sectors.

The agency believes VRL's proposal to de-list Vedanta would lead to a further increase in the balance sheet leverage in the short run, but it would be moderately credit positive for Vedanta in the medium term, as it would reduce the group's structural subordination and improve the liquidity.

Granules India fell 0.49%. The pharmaceutical company said that the US drug regulator did not detect cancer-causing N-Nitrosodimethylamine (NDMA) in the company's API and finished dosage tablets. USFDA tested samples from a few lots of the company's API (active pharmaceutical ingredient) and finished dosage tablets and it "did not detect NDMA." NDMA is classified as a probable human carcinogen (a substance that could cause cancer). It is a known environmental contaminant typically found in water and foods, including meats, dairy products and vegetables.

Steel Strips Wheels on Thursday (28 May) announced that it bagged exports orders for over 25,000 wheels for EU caravan trailer & US mobile home market to be executed within July from its Chennai plant. Additional orders are expected in coming weeks from several other regular customers as the market begins to recover. SSWL expects to have 5% year-on-year growth in June 2020 in its exports numbers from Chennai plant, the company said. Shares of Steel Strips Wheels were trading 2.75% higher at Rs 342.15 on BSE.

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