News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 6 years ago
Rediff.com  » Business » Markets snap four-day long rally ahead of GDP data

Markets snap four-day long rally ahead of GDP data

By SI Reporter
Last updated on: May 31, 2017 17:27 IST
Get Rediff News in your Inbox:

Broader market outperformed the frontline indices with the Smallcap and Midcap gaining up to 1%

The benchmark indices snapped four-session long gaining streak to end lower on Wednesday after hitting record highs in intraday trade ahead of the gross domestic product (GDP) data for the March quarter due later in the day.

The GDP growth is expected to come in at 7.1% for the January-March quarter, according to economists polled by Reuters.

The S&P BSE Sensex ended at 31,145, down 13 points, while the broader Nifty50 closed at 9,621, down 3 points.

In intraday trade, the 30-share Sensex rose 96 points to touch its fresh high of 31,255, while the 50-share Nifty added 25 points to hit its record high of 9,649.

Broader market outperformed the frontline indices with the S&P BSE Midcap and the S&P BSE Smallcap indices rising up to 1%.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,384 shares rose and 1,284 shares declined. A total of 181 shares were unchanged.

"Profit booking at record high pulled the market to end flat. DIIs continued their buying spree with positive sentiment on good monsoon while FIIs gradually started to sell with a caution on valuation. Investors will now closely watch Q4FY17 GDP data today for future cues," said Vinod Nair, Head of Research, Geojit Financial Services.

Buzzing stocks

Automobiles companies were in focus with the S&P BSE Auto (24,293) and Nifty Auto index (10,919) hitting their respective record highs in intra-day trade.

Mahindra & Mahindra (M&M), Bharat Forge, Exide Industries and Maruti Suzuki from the auto index were up in the range of 1% to 4%.

Mahindra and Mahindra gained as much as 6.4% in intraday trade after the company reported nearly 20% rise in March-quarter profit, beating analysts' estimates.

Aviation stocks surged amid decline in global crude oil prices. InterGlobe Aviation (up 4%), SpiceJet (up 4.3%) and Jet Airways (up 4.3%) advanced. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.

United Spirits rose to its highest since March 15 after posting gains in March-quarter margins and revenue. The stock settled at Rs 2,258, up 8%.

Reliance Communications recovered to end 2% higher after plunging as much as 9.5% to its lowest ever after Moody's downgraded it deeper into "junk" territory and kept its ratings under review for further downgrade as the company struggles with a heavy debt burden.

Global markets

World stocks are poised to end May up nearly 2%, marking the seventh straight monthly increase and the longest monthly winning streak in over a decade.

MSCI's global equity index held steady, while European stocks edged down 0.1% in early trade following Wall Street's dip on Tuesday. Germany's DAX was flat and sterling's weakness helped lift Britain's FTSE 100 by 0.2%.

Asian shares drew some support from data that showed activity in China's manufacturing sector grew at the same pace in May as in April, although a sturdy performance from the Japanese yen helped push the Nikkei into the red.

US futures pointed to a rise of 0.1% on Wall Street.

Photograph: PTI Photo

Get Rediff News in your Inbox:
SI Reporter in New Delhi
Source: source
 

Moneywiz Live!