A bout of volatility was witnessed as key benchmark indices trimmed gains after extending intraday gains in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was up 66.39 points or 0.25% at 26,719.99. The Nifty 50 index was currently up 17.15 points or 0.21% at 8,173.80. The market breadth indicating the overall health of the market was negative. On BSE, 1,209 shares rose and 1,249 shares fell. A total of 192 shares were unchanged. The BSE Mid-Cap index was currently up 0.28%. The BSE Small-Cap index was currently up 0.45%. Both these indices outperformed the Sensex.
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.
Shares of oil exploration and production (E&P) firms were mixed. Cairn India (up 2.67%) and ONGC (up 0.35%) rose. Oil India (down 0.34%) edged lower.
Index heavyweight Reliance Industries (RIL) was off 0.07% at Rs 972. The stock hit a high of Rs 981.45 and a low of Rs 968.25 so far during the day.
Shares of public sector oil marketing companies (PSU OMCs) edged lower ahead of a fuel price review. Indian Oil Corporation (down 2.51%), BPCL (down 1.46%) and HPCL (down 2.02%) declined. A fuel price review by PSU OMCs is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. The first price review takes place during the middle of the month and the second on the last day of the month.
In the global commodities markets, crude oil prices declined as investors await the outcome of a meeting of the Organization of the Petroleum Exporting Countries (OPEC). Brent for July settlement was currently down 21 cents at $49.11 a barrel. The contract had fallen 27 cents or 0.54% to settle at $49.32 a barrel during the previous trading session. An official meeting of the OPEC is scheduled on Thursday, 2 June 2016, in Austria's capital Vienna where the issue of supply glut is expected to take center stage.
Shares of state-run gas transmission major GAIL (India) rose 0.16% to Rs 380 after the company said it has started drilling its second exploratory well as an operator in the NELP-IX block in Cambay Basin. The well is situated in Anand district in Gujarat and the spudding operations started on 27 May 2016. Drilling of target depth of 2,200 metres of this well is scheduled to be completed in 30 to 35 days, GAIL (India) said. The announcement was made during market hours today, 30 May 2016.
GAIL (India) is the lead operator of the block with 25% participating interest. Other partners in this block are Bharat Petro Resources (BPRL), Engineers India, Monnet Ispat Energy and Bharat Forge Infrastructure (BFIL). The consortium will drill eight exploratory wells in the initial exploration phase as per the minimum work commitment of the production sharing contract (PSC), GAIL (India) said.
Engineers India rose 1.14% at Rs 182.50. Monnet Ispat Energy rose 0.22% at Rs 22.40.
FMCG stocks edged higher. GlaxoSmithkline Consumer Healthcare (up 1.38%), Emami (up 1.34%), Britannia Industries (up 1.22%), Dabur India (up 1.01%), Nestle India (up 1.8%), Bajaj Corp (up 0.85%), Tata Global Beverages (up 0.72%), Colgate-Palmolive (India) (up 0.57%) and Godrej Consumer Products (up 0.38%) rose. Jyothy Laboratories (down 1.64%), Marico (down 1.36%), Procter & Gamble Hygiene and Healthcare (down 1.1%) and Hindustan Unilever (down 0.86%) edged lower.
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