Key benchmark indices surged as positive global stocks boosted sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, rose 448.39 points or 1.48% to 30,750.03, as per the provisional closing data. The Nifty 50 index rose 149.20 points or 1.59% to 9,509.75, as per the provisional closing data. The market was volatile as traders rolled over positions in the futures & options (F&O) segment from the near month May 2017 series to June 2017 series. The near month May 2017 derivatives contract expired today, 25 May 2017.
The Sensex hit its record high level in intraday trade, while the Nifty hit its highest intraday level in more than one week. The Sensex rose 491.79 points, or 1.62% at the day's high of 30,793.43 in late trade, its record high level. The index rose 50.62 points, or 0.17% at the day's low of 30,352.26 in early trade. The Nifty rose 162.75 points, or 1.74% at the day's high of 9,523.30 in late trade, its highest intraday level since 17 May 2017. The index rose 18.65 points, or 0.20% at the day's low of 9,379.20 in early trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 1.35%, underperforming the Sensex. The BSE Small-Cap index provisionally rose 2.01%, outperforming the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,881 shares rose and 801 shares fell. A total of 147 shares were unchanged.
The total turnover on BSE amounted to Rs 3387.35 crore, lower than turnover of Rs 3832.73 crore registered during the previous trading session.
Indian Oil Corporation rose 1.21% to Rs 435.85 after net profit jumped 85.48% to Rs 3721 crore on 25.01% rise in total income to Rs 124344.64 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 25 May 2017.
Indian Oil Corporation said that average gross refining margin rose to $7.77 per barrel in Q4 March 2017 from $5.06 per barrel in Q4 March 2016. The net under realisation suffered by the company in Q4 March 2017 was nil.
Indian Overseas Bank gained 2.38% to Rs 25.80 after bank said its committee of directors will meet on 29 May 2017 to consider raising of equity capital by way of preferential issue to the Government of India. The announcement was made after market hours yesterday, 24 May 2017.
Most capital goods shares rose. GE T&D India (up 5.63%), Crompton Greaves (up 5.16%), Havells India (up 4.79%), Punj Lloyd (up 4.43%), Jindal Saw (up 3.83%), Bharat Electronics (up 3.69%), BEML (up 2.98%), Reliance Defence and Engineering (up 2.50%), Suzlon Energy (up 2.38%), Thermax (up 1.55%), Bharat Heavy Electricals (up 1.30%), Lakshmi Machine Works (up 1.19%), Siemens (up 1.04%), GE Power India (up 0.81%), SKF India (up 0.47%) and ABB India (up 0.24%), edged higher. Praj Industries (down 1.03%) and AIA Engineering (down 5.40%), edged lower.
Engineering and construction major Larsen & Toubro (L&T) rose 4.91% to Rs 1,764.
Overseas, European shares were trading higher. The UK economy slowed more sharply than first thought in the first quarter, according to a fresh estimate today, 25 May 2017. The Office for National Statistics said its latest data suggest the economy expanded at a quarterly rate of 0.2% in the first quarter, a weaker pace of growth than the 0.3% preliminary estimate published last month and much weaker than the 0.7% pace notched up in the final three months of 2016. On an annualized basis, the economy grew 0.7%, compared to an earlier estimate of 1.2%.
Asian stocks ended higher after the minutes of the Federal Reserve's latest meeting sparked uncertainty over the next US rate hike. On Wednesday, the European Central Bank published its latest Financial Stability Review report, in which the bank suggested that debt sustainability concerns had risen over the past six months amid a potential uptick in yields.
Meanwhile, market participants were looking ahead to an OPEC meeting which began earlier in the day. Deeper production cuts were ruled out by Saudi Arabia, which said major oil producers had agreed to extend output curbs for a further nine months. In an accord reached in December 2016, OPEC and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017.
US stocks closed higher for a fifth-straight day yesterday, 24 May 2017, buoyed by the minutes of the Federal Reserve's May meeting. The S&P 500 rose 5.97 points, or 0.3%, to close at 2,404.39. The Dow Jones Industrial Average also rose for a fifth straight day, gaining 74.51 points, or 0.4%, to finish at 21,012.42, just 0.5% below its record close set on 1 March 2017. The Nasdaq Composite Index climbed 24.31 points, or 0.4%, to end at 6,163.02.
The minutes from the US central bank's May 2-3 policy meeting showed that the Fed would gradually raise rates and wind down its $4.5 trillion of mortgage-backed bond holdings and longer-term US government bonds. The Fed also signaled that interest rates could be raised soon, but added that it would be prudent to wait for more US economic data.
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