We had mentioned in Wednesday’s closing report that Nifty, Sensex were still range-bound. The major indices of the Indian stock markets rallied on Thursday and closed with reasonable gains of around 0.5% over Wednesday’s close. However, there is no promise of a future rally, as NSE trading volumes were as low as 80.72 crore. The trends of the major indices in the course of Thursday’s trading are given in the table below:
Short covering, coupled with lower-level value buying, lifted the Indian equity markets on Thursday. The key indices traded in the positive territory during the late-afternoon session, as healthy buying was witnessed in metal, banking and capital goods stocks. The key indices on Wednesday had closed flat -- marginally in the green -- led by healthy macro-economic data. Initially on Thursday, the key indices opened on a weak note, in sync with their Asian peers and a lower close of the US stock on Wednesday. Asian stocks receded as investors were disappointed at the lack of further stimulus measures in Japan. Besides, the European stocks traded flat as caution prevailed ahead of the upcoming ECB (European Central Bank) meet, also later Thursday. In addition, a week rupee depressed the equity markets. However, a late afternoon bout of short covering supported prices. The recently released healthy domestic macro-economic data also aided the equity markets to pare some of their earlier losses. Overall, the markets were bullish on Thursday.
The US dollar slipped against most major currencies on Wednesday as data from the country came out mixed. The May purchasing managers' index registered 51.3%, an increase of 0.5% from the April reading of 50.8%, according to the Institute for Supply Management (ISM) on Wednesday. Meanwhile, US construction spending during April 2016 was estimated at a seasonally adjusted annual rate of $1,133.9 billion, 1.8% below the revised March estimate, reported the Commerce Department on Wednesday. In the previous session, the Commerce Department said that the price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the Federal Reserve, increased 0.3% from a month earlier. The core PCE price index, excluding volatile food and energy, rose 0.2% from the previous month and 1.6 percent from a year ago, still below the central bank's target of 2%. Analysts said the mixed data did not support bets on a rate-hike as early as June. This is important to investors in the Indian stock markets, who are eagerly looking forward to the interest rate policy from the RBI (Reserve Bank of India) and the Federal Reserve in US.
Tata Motors on Wednesday said it has sold 40,071 units of commercial and passenger vehicles including exports in May 2016, a growth of 1% over 39,496 vehicles sold in the same month last year. Domestic sales of passenger vehicles in the last month stood at 8,617, down 23% from 11,138. While the sales of passenger cars in May was lower by 15% at 7,787 units, its hatchback sales grew by 7%, due to strong demand for the recently launched Tiago, the company said. "UV sales declined by 58% at 830 units in May 2016, compared to 1,962 sold in May 2015," it said in a statement. Overall commercial vehicles sales in May in the domestic market were at 27,026 units, a growth of 14%. Tata Motors shares closed at Rs453.20, up 0.89% on the BSE on Thursday.
Coal India Ltd (CIL) on Wednesday said it posted a rise of 3.9% in production in May this year as compared to same month last year. It produced 42.58 million tonnes (mt) of coal in May as against the target of 44.64 mt, achieving 95% of the target set for the month. It had produced 40.97 mt of coal in the corresponding month last year. CIL's off-take also rose by 4.09% in the last month as compared to corresponding month last year. Its off-take stood at 45.53 mt in May as compared to 43.74 mt in the year-ago month. The state-run miner set a target of 598.60 mt of production in the current fiscal. For FY17, the target of off-take of the company was set at 598.61 mt and out of this, 450 mt will be supplied to power sector utilities. At the beginning of the current fiscal, coal stock of the company stood at 57.67 mt. This had increased during the last fiscal due to regulated lifting by power utility sector. In the last fiscal, the miner produced 536.51 mt of coal against a target of 550 mt and its off-take stood at 532.26 mt. Coal India shares closed at Rs306.40, up 3.20% on the BSE on Thursday.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: