Strong market breadth

Key benchmark indices held firm in early afternoon trade boosted by decline in crude oil prices. At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 209.15 points or 0.6% at 35,134.02. The Nifty 50 index was up 76.85 points or 0.72% at 10,682. Shares of index heavyweight and engineering and construction major L&T advanced after new orders win. Oil stocks rose.

In commodities, oil prices fell today, 28 May 2018 extending a steep decline in the previous session, as the market eyed an increase in output from the world's three top crude producers, Russia, the United States and Saudi Arabia. The slide in global crude oil prices will help India in containing inflation, current account and fiscal deficits. India imports about 80% of its crude oil requirement.

 

Trading for the week began on an upbeat note as domestic stocks saw gap-up opening as crude oil extended a steep decline in the previous session. The Sensex regained the psychological 35,000 level in opening trade. Key benchmark indices extended early gains and hit fresh intraday high in morning trade. Stocks trimmed some gains in mid-morning trade.

The S&P BSE Mid-Cap index was up 1.37%. The S&P BSE Small-Cap index was up 1.42%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,718 shares rose and 715 shares fell. A total of 141 shares were unchanged.

Index heavyweight and engineering and construction major L&T advanced 2.03% after the company said that water & effluent treatment business of L&T Construction has won orders valued Rs 5704 crore. The announcement was made during market hours today, 28 May 2018.

Oil stocks rose. Shares of oil marketing companies rose after crude oil prices fell. HPCL (up 5.73%), BPCL (up 5.05%) and Indian Oil Corporation (up 4.83%) gained.

Among oil exploration and production (E&P) companies, Reliance Industries (up 0.09%) and Oil India (up 1.21%) rose. ONGC (down 0.09%) fell.

Shares of aviation companies gained as crude oil prices fell. Jet fuel or ATF constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices.

Among Aviation stocks, SpiceJet (up 13.77%), Jet Airways (India) (up 6.36%) and InterGlobe Aviation (up 2.6%) edged higher.

Manpasand Beverages was locked in 20% lower circuit at Rs 344.80 after the company announced the resignation of statutory auditor Deloitte Haskins & Sells with effect from 26 May 2018. Manpasand Beverages said the board has appointed Mehra Goel & Co as statutory auditor of the company with effect from 27 May 2018 to fill the casual vacancy. The announcement was made on Sunday, 27 May 2018.

Manpasand Beverages said that the board meeting scheduled on 30 May 2018 to consider audited financial results and to recommend dividend, if any, has been cancelled and further notice for the same will be sent in due course of time.

Overseas, most Asian stocks were trading higher on signs that the United States and North Korea are still working towards holding a summit next month. Profits earned by Chinese industrial firms in April reportedly rose at their fastest pace in six months, data from the National Bureau of Statistics (NBS) showed on Sunday, 27 May 2018 as factories benefited from higher prices and strong demand.

US stocks ended mostly lower Friday, 25 May 2018 on lighter than normal volume as a plunge in crude-oil futures, sparked by reports that OPEC and major oil-producer Russia were considering increasing output, slammed shares of energy-related companies.

US President Donald Trump reportedly said on Sunday, 27 May 2018 that a US team had arrived in North Korea to prepare for a proposed summit between him and North Korean leader Kim Jong Un on 12 June 2018 in Singapore, which Trump pulled out of last week before reconsidering.

Meanwhile, US markets will remain closed today, 28 May 2018 for Memorial Day. UK markets will remain closed today, 28 May 2018 for the spring bank holiday.

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