After a sudden surge took the barometer index, the S&P BSE Sensex, to its highest level in more than 29 weeks and the Nifty 50 index to its highest level in more than 30-weeks in afternoon trade. At 13:15 IST, the Sensex was up 266.27 points or 1.01% at 26,632.95. The Nifty was currently up 86.50 points or 1.07% at 8,156.15. Gains in Asian stocks aided the upmove on the domestic bourses. Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy.
The Sensex jumped 295.96 points, or 1.12% at the day's high of 26,662.64 in afternoon trade, its highest level since 4 November 2015. The index rose 38.60 points, or 0.15% at the day's low of 26,405.28 in early trade. The Nifty rose 92.55 points, or 1.14% at the day's high of 8,162.20 in afternoon trade, its highest level since 29 October 2015. The index rose 7.40 points, or 0.09% at the day's low of 8,077.05 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,381 shares rose and 962 shares fell. A total of 174 shares were unchanged. The BSE Mid-Cap index was currently up 1.43%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.7%, underperforming the Sensex.
In overseas stock markets, European markets witnessed a mixed trend as investors awaited comments from US Federal Reserve Chairwoman Janet Yellen at a scheduled speech at Harvard University later in the global day. Her comments could provide more indications about whether the US central bank would raise rates in near term. 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.
Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy. US equities took a breather yesterday, 26 May 2016, following their steepest two-day advance since March as investors parsed a slew of economic reports. The latest data showed US durable goods orders, housing and initial jobless claims data coming in strong, while capital goods orders and the Kansas City Fed manufacturing survey were weak.
Index heavyweight and software major Infosys advanced 1.81% to Rs 1,253.95. The stock hit high of Rs 1,256.85 and low of Rs 1,230 so far during the day.
State Bank of India rose 1.36% The bank reported 66.22% fall in net profit to Rs 1263.81 crore on 10.1% rise in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 27 May 2016.
Stocks of oil exploration and production (E&P) firms witnessed a mixed trend. Reliance Industries (up 1.82%) and Oil India (up 0.63%) rose. Cairn India fell 1.98%.
Brent for July settlement was currently down 42 cents at $49.17 a barrel. The contract had declined 15 cents or 0.3% to settle at $49.59 a barrel during the previous trading session.
ONGC edged lower in volatile trade in the aftermath of the announcement of Q4 March 2016 results. The stock was off 1.75% at Rs 212.90. The stock had risen 3.09% to settle at Rs 216.70 yesterday, 26 May 2016, after the result hit the market at the fag end of the trading session. The company's net profit rose 12.22% to Rs 4416.11 crore on 15.42% decline in total income to Rs 19776.70 crore in Q4 March 2016 over Q4 March 2015. ONGC's net profit fell 9.75% to Rs 16003.65 crore on 4.14% decline in total income to Rs 84584.99 crore in the year ended 31 March 2016 over the year ended 31 March 2015.
In terms of the decision of the Government of India, the company shared under-recoveries of oil marketing companies (OMCs) amounting to Rs 1096 crore for the year ended March 2016 (FY 2016) by allowing discount in the prices of crude oil based on the rates of discount communicated by Petroleum Planning and Analysis Cell (PPAC). The discount was sharply lower than Rs 36300 crore in the year ended 31 March 2015 (FY 2015). The impact on net profit was Rs 607 crore in FY 2016 as compared to Rs 20437 crore in FY 2015.
ONGC's consolidated net profit fell 22.96% to Rs 14123.80 crore on 16.63% decline in total income to Rs 139364.35 crore in the year ended 31 March 2016 over the year ended 31 March 2015.
Stocks of public sector oil marketing companies (PSU OMCs) rose on decline in crude oil prices. HPCL surged 6.06% ahead of its Q4 March 2016 results today, 27 May 2016. Indian Oil Corporation (IOCL) gained 5.36% ahead of its Q4 March 2016 results today, 27 May 2016
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
BPCL was up 8.65% after the company's board of directors recommended issue of 1:1 bonus shares at the time of announcement of its Q4 March 2016 results after trading hours yesterday, 26 May 2016. The company has fixed 11 July 2016 as the record date for the bonus issue. BPCL's net profit fell 10.64% to Rs 2549.08 crore on 13.55% decline in total income to Rs 44891.65 crore in Q4 March 2016 over Q4 March 2015. The average gross refining margin (GRM) for Q4 March 2016 fell to $6.30 per barrel from $ 7.85 per barrel in Q4 March 2015.
Realty stocks gained on renewed buying. Prestige Estates Projects (up 8.98%), Sobha (up 3.58%), Indiabulls Real Estate (up 2.99%), Unitech (up 1.77%), DLF (up 0.39%), Godrej Properties (up 1.47%), Hubtown (up 0.66%) and Oberoi Realty (up 0.16%) gained. Housing Development and Infrastructure (down 0.95%) and D B Realty (down 1.85%) fell.
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