The market rose for a third straight session as a sharp drop in crude prices and a recovery in the rupee boosted sentiment. The barometer index, the S&P BSE Sensex, gained 240.61 points or 0.69% at 35,165.48. The Nifty 50 index gained 83.50 points or 0.79% at 10,688.65. The Sensex settled well above the psychological 35,000 mark after regaining that level in opening trade.
In commodities market, 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.
In the global commodities markets, Brent for July 2018 settlement was down $1.08 a barrel or 1.41% to $75.36 a barrel. The contract slumped $2.35 a barrel or 2.98% to settle at $76.44 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 67.3375, compared with its close of 67.77 during the previous trading session.
Back home, 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. Indices hit fresh intraday high in afternoon trade. Firmness prevailed on the bourses in mid-afternoon trade on sustained buying demand in index pivotals.
The Sensex rose 240.61 points or 0.69% to settle at 35,165.48, its highest closing level since 16 May 2018. The index rose 316.09 points, or 0.91% at the day's high of 35,240.96. The index rose 81.63 points, or 0.23% at the day's low of 35,006.50.
The Nifty 50 index rose 83.50 points or 0.79% to settle at 10,688.65, its highest closing level since 16 May 2018. The index rose 104.65 points, or 0.99% at the day's high of 10,709.80. The index rose 35.40 points, or 0.33% at the day's low of 10,640.55.
The S&P BSE Mid-Cap index rose 1.35%. The S&P BSE Small-Cap index rose 1.6%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1843 shares rose and 842 shares fell. A total of 175 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (up 2.50%), the S&P BSE Oil & Gas index (up 2.47%), the S&P BSE Healthcare index (up 2.11%), the S&P BSE Industrials index (up 1.71%), the S&P BSE Realty index (up 1.58%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.37%), the S&P BSE Finance index (up 1.37%), the S&P BSE Basic Materials index (up 1.34%), the S&P BSE Utilities index (up 1.34%), the S&P BSE Power index (up 1.25%), the S&P BSE Bankex (up 1.18%), the S&P BSE Energy index (up 1.16%), the S&P BSE Auto index (up 1.12%) and the S&P BSE Metal index (up 0.95%), outperformed the Sensex. The S&P BSE FMCG index (up 0.55%), the S&P BSE Telecom index (up 0.10%), the S&P BSE Consumer Durables index (up 0.09%), the S&P BSE Teck index (down 1.33%) and the S&P BSE IT index (down 1.72%), underperformed the Sensex.
Banks were in demand. Among private sector banks, Federal Bank (up 2.96%), HDFC Bank (up 1.52%), Yes Bank (up 1.52%), Axis Bank (up 1.49%), RBL Bank (up 1.29%), ICICI Bank (up 0.93%), City Union Bank (up 0.36%), Kotak Mahindra Bank (up 0.22%) and IndusInd Bank (up 0.11%), edged higher.
Among public sector banks, Punjab National Bank (up 6.48%), Indian Bank (up 6.20%), Syndicate Bank (up 5.45%), Union Bank of India (up 5.33%), Andhra Bank (up 5.12%), Corporation Bank (up 4.97%), Bank of India (up 4.71%), Allahabad Bank (up 4.67%), Canara Bank (up 4.48%), Vijaya Bank (up 4.30%), Central Bank of India (up 4.20%), United Bank of India (up 3.89%), UCO Bank (up 3.85%), Dena Bank (up 3.38%), Bank of Maharashtra (up 3.10%), Bank of Baroda (up 2.97%), State Bank of India (up 1.97%), Punjab & Sind Bank (up 1.57%) and IDBI Bank (up 0.92%), edged higher.
Index heavyweight and engineering and construction major L&T advanced 2.52% ahead of its Q4 result today, 28 May 2018. L&T 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.
NTPC rose 1.36% after net profit surged 40.69% to Rs 2925.59 crore on 13.07% rise in total income to Rs 23617.83 crore in Q4 March 2018 over Q4 March 2017. The result was announced during trading hours today, 28 May 2018.
Sun Pharmaceuticals Industries jumped 7.11%. On a consolidated basis, net profit after minority interest of Sun Pharmaceuticals Industries rose 10.35% to Rs 1528.99 crore on 1.67% decline in net sales to Rs 6711.01 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours on Friday, 25 May 2018.
The decline in Q4 net sales was primarily driven by the US and the Active Pharmaceutical Ingredients (API) businesses. All other businesses recorded positive growth for the quarter. For Q4 March 2018, external sales of API were at Rs 332 crore, a decline of 16% over Q4 last year.
India sales were reported at Rs 1963 crores, growth of 2% over Q4 last year. US finished dosage sales were reported at $368 million, down by 3% over Q4 last year. Emerging markets sales were reported at $199 million, up by 10% over Q4 last year. Rest of World sales were reported at $116 million, a growth of 6% over Q4 last year. Research and development (R&D) investments were reported at Rs 743 crores (11% of sales) compared to Rs. 600 crores (9% of sales) for Q4 March 2017.
Other operating income for the quarter was reported at Rs 266 crore, which includes $20 million of milestone payment from Almirall S.A (Spain) as part of the licensing agreement for the development and commercialization of Tildrakizumab for psoriasis in Europe.
Dilip Shanghvi, managing director of the company said that the company's Q4 performance is in-line with its guidance. Over the last four quarters, the company has been able to record a gradual improvement in performance despite a challenging US generic pricing environment. FY 2019 will mark the crossing of some important milestones in the company's specialty journey with the likely launch of 3 specialty products in the US - Ilumya, OTX-101 and Yonsa - which will entail upfront investments. The company is also planning to conduct additional clinical trials for a new indication of Ilumya. The company will continue to evaluate opportunities in the specialty segment to further enhance this business.
Tech Mahindra dropped 3.86%. On a consolidated basis, net profit of Tech Mahindra rose 33.15% to Rs 1230.80 crore on 3.58% rise in net sales to Rs 8054.50 crore in Q4 March 2018 over Q3 December 2017. The result was announced after market hours on Friday, 25 May 2018.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11.7% to Rs 1412 crore in Q4 March 2018 over Q3 December 2017. The software services exporter saw a rise of 8.3% in the number of active clients, and strong growth in deal wins in the $5 million and $10 million client categories.
Avanti Feeds fell 6.78% after consolidated net profit fell 3.09% to Rs 86 crore on 24.22% increase in net sales to Rs 834.28 crore in Q4 March 2018 over Q4 March 2017. The result was announced on Saturday, 26 May 2018.
Overseas, most European stocks reversed intraday gains. Asian stocks edged 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 is also closed today, 28 May 2018 for the spring bank holiday.