Indian shares snapped a two-day losing streak led by gains in automakers which also helped equity benchmarks advance for a fourth week.
The S&P BSE Sensex rose 0.4 percent to 31,273 while NSE Nifty climbed 0.4 percent as well to 9,653 -- the index’s first close above the level. The S&P BSE Auto Index led 10 of the 13 sector gauges higher. Hero MotoCorp Ltd. and TVS Motor Co. gained after each posted an increase in sales for the month of May.
Another top gainer on the Nifty was Adani Power Ltd., which said its board will consider on June 6, a proposal for slump sale of its power generating business to another group company.
Twenty seven of the 50 companies reported earnings that beat or matched estimates. However, the combined net income of Nifty 50 companies climbed 12 percent in the January-March period from a year earlier missing estimates, while sales increased 14 percent, according to Bloomberg data.
Shares of infrastructure stocks rallied anywhere between 24 percent and 2 percent after GMR Infrastructure reported a pre-tax profit and its debt halved in the financial year 2016-17.
Some of Key Movers
- GMR Infra (+24.7%)
- GVK Power & Infrastructure (+11.5%)
- Gammon Infrastructure (+18%)
- Gammon India (8.6%)
- HCC (+7%)
- Punj Lloyd (+6.6%)
- Lanco Infrastructure (10%)
- ITC has 10 lakh shares change hands in a block
- Sun Pharma has 11 lakh shares change hands in a block
Buyers and sellers were not immediately known.
Source: Bloomberg
Shares of the infrastructure firm gained as much as 15.7 percent, the most since May 2014. It was the best performer on the S&P BSE 500, Nifty Midcap 50 indices. The scrip returned over 46 percent this year compared to 17.4 percent gain in the benchmark Sensex.
Today’s volume is over 3 times its three-month full-day average.
The company reported group pre-tax profit of Rs 753 crore for year ended March 31 versus a loss of Rs 2,476 crore year ago, according to Bloomberg. Moreover, it managed to cut gross debt to Rs 19,856 crore in FY17 versus Rs 3,748 crore.
The company said its FY17 group EBITDA stood at Rs 3,497 crore versus Rs 3,114 crore. It attributed “robust improvement in airports and energy verticals” for its earnings performance.
Its engineering, procurement and construction (EPC) order book stands at Rs 7,100 crore.
Shares of the car maker pared some of its early gains after its May sales decline by around 4 percent.
The company managed to sell 38,361 units in May versus 40,123 sold same period last year. Local sales of commercial and passenger vehicles in May stood at 34,461 units versus 35,695 year earlier.
The company’s sales from exports was at 3,900 units in May 2017, a decline of 12 percent compared to 4,428 vehicles sold in May 2016.
The stock held gains of around 1.3 percent after touching an intraday high of 2 percent in early trade.
Rising for the third straight day, the rupee strengthened by 14 paise to 64.34 against the U.S. dollar in early trade on sustained selling of the American currency by banks and exporters.
Forex dealers said besides continued selling of the greenback, weakness in dollar against other currencies overseas and a higher opening of the domestic equity market backed up the rupee.
The rupee had firmed up by 3 paise to close at 64.48 in yesterday's trade, shrugging off weaker-than-expected GDP numbers.
PTI
Shares of the Gautam Adani-promoted company gained as much as 2 percent, after it said that its board will consider on June 6, a proposal for slump sale of its Mundra power generating business undertaking to another group company Adani Power (Mundra) Ltd.
Shares of the drug maker rose as much as 5.2 percent, the most since May 11.
Zydus’ Moraiya plant received its first product approval after the successful audit by the U.S. drug regulator. The stock was the best performer on the S&P BSE 100 index and second best on the S&P BSE 200 index.
Shares of the two-wheeler maker rose as much as 5.9 percent, the most since July 2000 debut after sales in May grew 16 percent YoY to 282,007 units.
The stock was the best performer on the Nifty Midcap Index, with trading volume at around 1.6 times its three-month average.
Shares of the two-wheeler maker dropped as much as 2.3 percent, making it the worst performing member of the Sensex.
The auto maker sold 313,756 units in May, down 10 percent year-on-year.
Exports too dropped around 3 percent YoY to 139,709 while local sales dropped 15 percent YoY to 174,047 units in May.
Bond traders are positioning long ahead of the RBI's credit policy meeting next week as slowing growth and record low inflation fuels speculation the central bank could ditch its hawkish tone. Underwriting commissions released yesterday suggest demand at today's government bond auction will be strong.
Citi sees a 40 percent probability of RBI cutting rate next week, and a drop in one-year swap rate to the lowest since March 27 also suggests investors are starting to price in a less hawkish RBI.
The rupee is down 0.1 percent against the dollar and may trade in a range today.
- Castrol India cut to accumulate at Dolat Capital Market
- Cyient new buy at Phillip Secs, price target Rs 570
- Gujarat Fluorochemicals cut to outperform at Batlivala & Karani
- J Kumar Infraprojects cut to hold at Anand Rathi Securities
- United Spirits cut to underperform at Batlivala & Karani
- Mahindra raised to accumulate at Arihant Capital
- Steel Authority raised to hold at Reliance Securities
#BQMarketsNow | FY18 Nifty target of 10,171, says Bonanza Portfolio’s Foram Parekh.https://t.co/g6tFm72QCQ pic.twitter.com/iJbGtBPNCt
— BloombergQuint (@BloombergQuint) June 2, 2017
For a complete list of stocks to watch, click here
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The non-farm payrolls report will be released after Asia Pacific markets close today. Economists are looking for job growth of 182,000 in May on the heels of a 211,000 increase in April. Average hourly earnings are expected to accelerate a tick to an annual pace of 2.6 percent, while the unemployment rate holds steady at 4.4 percent.
The ADP’s private employment report released Thursday crushed expectations, raising the bar for Friday’s release somewhat and fostering a rise in Treasury yields as well as the U.S. dollar, the best-performing G10 currency on the day.
WTI crude futures traded near the $48-mark as the rise in global oil production offset the fall in weekly U.S. crude inventories. Nymex WTI crude traded 0.5 percent lower to $48.10 per barrel.
Oil is set to fall further—most in four weeks—as production registered a fourteenth increase in 15 weeks, according to Bloomberg data.
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