Amid a divergent trend among various index constituents, the two key benchmark indices registered small gains. The barometer index, the S&P BSE Sensex, rose 65.89 points or 0.25% at 26,719.58, as per the provisional closing data. The Nifty 50 index rose 16.40 points or 0.2% at 8,173.05, as per the provisional closing data.
The Sensex rose 141.36 points or 0.53% at the day's high of 26,794.96 in early trade, its highest level since 4 November 2015. The barometer index fell 30.27 points or 0.11% at the day's low of 26,623.33 in morning trade. The Nifty rose 43.35 points or 0.53% at the day's high of 8,200 in early trade, its highest level since 28 October 2015. The index fell 5.85 points or 0.07% at the day's low of 8,150.80 in morning trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,234 shares rose and 1,376 shares fell. A total of 191 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.35%. The BSE Small-Cap index was provisionally up 0.42%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2563 crore, lower than turnover of Rs 3371.35 crore registered during the previous trading session.
Tata Steel declined 1.88% at Rs 322.80. Global credit rating agency Moody's Investors Service on Friday, 27 May 2016, said that the proposed sale of Tata Steel UK's long products Europe business to Greybull Capital and Tata Steel Europe's decision to sell its UK business are credit positive on its ratings on Tata Steel and Tata Steel UK. Moody's said that the divestment of the loss-making operations will reduce the drag on the European business' profitability, which has been under strain for a while. Tata Steel Europe has initiated the process of selling its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary. Moody's said that it will watch out for clarity on divestment of liabilities including pensions and erasing the negative EBITDA impact of the UK facilities on Tata Steel UK's credit metrics would be critical for any change in outlook to its rating on Tata Steel UK.
Hindalco Industries surged 11.98% at Rs 102.85 after 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. The result was announced on Saturday, 28 May 2016. The company's revenue from operations dropped 7.51% to Rs 8667.52 crore in Q4 March 2016 over Q4 March 2015. The company attributed the decline in revenue to a sharp decline in both aluminium and copper realizations. In aluminium, the impact was much severe due to a sharp fall in local market premium and a sharp surge in imports of aluminium in the country. The company said its operational performance was strong. A strong increase in aluminium volumes, a thrust on value addition across businesses, lower cost of raw materials and a weaker rupee helped the company partially offset the impact of a sharp fall in realizations. The bottom line was boosted by base effect. The company's bottom line in Q4 March 2015 was adversely impacted by a non-recurring expenditure of Rs 146.48 crore.
With regard to the future business outlook, Hindalco said that the uncertain global macros pose several challenges for the company. The management will continue its un-relented focus on operational excellence, enhanced value addition and cash conservation to tide over these circumstances.
Shares of state-run coal mining giant Coal India rose 3.8% at Rs 292.05 after the company's board of directors at its meeting held on Saturday, 28 May 2016, approved about 6.29% increase in coal prices with effect from 30 May 2016. This will be applicable to all subsidiaries of Coal India and NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn additional revenue of about Rs 3234 crore for the balance period of current financial year i.e. from 30 May 2016 to 31 March 2017. The board has also approved the differential price for non-regulated sector at a reduced rate of 20% over the price of regulated sector for G6 to G17 grades of coal for all subsidiaries of Coal India.
Coal India's consolidated net profit rose 0.22% to Rs 4247.93 crore on 0.72% decline in total income to Rs 22898.79 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016.
Index heavyweight and housing finance major HDFC fell 1.85% at Rs 1,234. The stock hit a high of Rs 1,258.90 and a low of Rs 1,213.30 in intraday trade.
Index heavyweight and software major Infosys rose 1.45% at Rs 1,264.50. The stock hit a record high of Rs 1,270 in intraday day. The stock hit a low of Rs 1,244.10 in intraday trade.
Maruti Suzuki India (MSIL) lost 1.58% at Rs 4,076 after the company announced temporary suspension of manufacturing of cars from its Manesar and Gurgaon facilities starting second half of 30 May 2016 due to fire accident at the Manesar facilities of its supplier Subros on 29 May 2016. Subros and MSIL are jointly assessing the extent of damage to essential equipment, MSIL said. MSIL said that it is examining the options available for the procurement of components from other facilities. Production will resume as soon as components become available, MSIL said. The announcement was made during market hours today, 30 May 2016.
MSIL after market hours on Friday, 27 May 2016, announced that the car maker is all set to start exports of its much awaited light commercial vehicle (LCV) Super Carry to South Africa and Tanzania. The first lot of nearly 100 Super Carry LCVs has been dispatched for shipment, MSIL said. The shipment to South Africa and Tanzania is of the petrol variant of Super Carry, the company said. The petrol variant for export market is powered by G12B engine. Besides African markets, the company also plans to export the Super Carry to South Asian Association for Regional Cooperation (SAARC) nations, it added. Based on the feedback, the company will explore export opportunities for Super Carry in other international markets, MSIL said. The India launch for Super Carry is planned in Q2 September 2016. To begin with, it will be launched in select parts of the country. For the domestic market, Super Carry will be powered by the E08 diesel engine. The company is setting up a separate retail channel in the Indian market exclusively for the Super Carry, MSIL said.
Mahindra & Mahindra (M&M) declined in volatile trade after announcing Q4 March 2016 results. The stock fell 0.57% to Rs 1,327.50. The stock hit a high of Rs 1,351.20 and a low of Rs 1,314.10 in intraday trade. The company's net profit rose 6.02% to Rs 583.73 crore on 14.57% growth in total income to Rs 10912.45 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 30 May 2016.
The combined net profit of M&M and Mahindra Vehicle Manufacturers (MVML) before exceptional items rose 20.5% to Rs 662 crore on 16% growth in gross revenue plus other income to Rs 11669 crore in Q4 March 2016 over Q4 March 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
The NTPC stock shrugged off weak financial performance for Q4 March 2016. The stock rose 3.15% at Rs 144.30. The company's net profit fell 7.73% to Rs 2716.41 crore on 6.19% decline in net total income from operations to Rs 18112.62 crore in Q4 March 2016 over Q4 March 2015. The result hit the market at the fag end of the trading session.
Bharat Heavy Electricals (Bhel) lost 5.85% at Rs 120.70 after net profit fell 59.52% to Rs 359.58 crore on 18.36% decline in total income to Rs 10418.64 crore in Q4 March 2016 over Q4 March 2015. The result was announced after trading hours on Friday, 27 May 2016. Bhel's order backlog stood at about Rs 1.10 lakh crore as on 31 March 2016. The company removed orders amounting Rs 3783 crore from the order book in Q4 March 2016. It removed orders amounting Rs 7429 crore from the order book in the year ended 31 March 2016, which are not likely to commence.
Bhel is set to move out as a constituent of the Sensex with effect from 20 June 2016. Power Grid Corporation of India (PGCIL) will replace Bhel as a constituent of the Sensex from that date.
In overseas stock markets, European stocks were mixed, with the prospect of a US interest rate hike coming sooner rather than later prompting investors to avoid aggressive bets. In Asia, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas. Japanese Prime Minister Shinzo Abe said he would delay a sales tax hike scheduled for April next year by 2-1/2 years, Masahiko Komura, vice president of the ruling Liberal Democratic Party, told reporters today, 30 May 2016.
Chinese stocks edged higher in volatile trade after the Shanghai and Shenzhen stock exchanges on Friday, 27 May 2016, announced rules on share trading suspensions, removing one potential roadblock to inclusion Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes, a move which could direct large amount of capital into China's stock markets. In mainland China, the Shanghai Composite ended 0.05% higher. In Hong Kong, the Hang Seng index closed 0.26% higher. 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.
US stocks edged higher during the previous trading session on Friday, 27 May 2016, after the latest data showed that the economy's slowdown in the first quarter wasn't as bad as initially thought. US GDP expanded at a 0.8% seasonally adjusted annual rate in the first three months of 2016, up from an initial estimate for 0.5% growth, the Commerce Department said on Friday, 27 May 2016. The faster-than-expected pace of growth, however, still represents a deterioration from the fourth quarter's 1.4% growth.
Federal Reserve Chairwoman Janet Yellen said in a speech on 27 May 2016 that a rate increase would be appropriate in coming months if the economy continues to strengthen. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016.
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