Realty stocks gain

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Key benchmark indices were trading with small losses after slipping into the red from positive terrain. At 10:20 IST, the barometer index, the S&P was down 13.69 points or 0.05% at 26,829.34. The 50 index was currently down 7.25 points or 0.09% at 8,213.55. Key indices hovered within a small range around the flat line so far during the trading session.

The Sensex fell 21.09 points or 0.07% at the day’s low of 26,821.94 in morning trade. The Sensex rose 58.39 points or 0.21% at the day’s high of 26,901.42 at the onset of the trading session. The Nifty shed 8.80 points or 0.1% at the day’s low of 8,212 in morning trade. The index rose 13.90 points or 0.16% at the day’s high of 8,234.70 at the onset of the trading session.

In overseas markets, Asian stocks were mixed today, 6 June 2016. US stocks fell on Friday, 3 June 2016 after data showed US employers last month added the fewest jobs in more than five years. The Labor Department said that nonfarm payrolls rose by 38,000 in May, the weakest performance since September 2010. Federal Reserve Governor Lael Brainard on Friday, 3 June 2016 called for the central bank to wait for more data before lifting interest rates as she said the jobs report shows the labor market has slowed. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,017 shares rose and 928 shares declined. A total of 90 shares were unchanged. The BSE Mid-Cap index was currently up 0.01%. The BSE Small-Cap index was currently up 0.19%. Both these indices outperformed the Sensex.

Realty stocks rose ahead of the Reserve Bank of India’s monetary policy review scheduled tomorrow, 7 June 2016. DLF (up 0.42%), D B Realty (up 1.41%), Sobha (up 0.82%), Indiabulls Real Estate (up 2.78%), Godrej Properties (up 0.55%), Housing Development & Infrastructure (HDIL) (up 3.36%), and Oberoi Realty (up 0.2%) edged higher. Unitech (down 0.26%) and NBCC (down 1.67%) declined. Purchases of both residential and commercial property are largely driven by finance.

Capital goods stocks were mixed. Bharat Electronics (up 2.34%), L&T (up 0.28%), and Thermax (up 0.11%) gained. Bharat Heavy Electricals (Bhel) (down 0.38%), Siemens (down 0.02%), Havells India (down 0.5%), and ABB India (down 0.09%) declined.

Cadila Healthcare rose 0.89% after the company announced on Saturday, 4 June 2016, that the United States Food and Drug Administration (USFDA) approved the company’s plan to initiate a phase 2 clinical trial of Saroglitazar in patients with non-alcoholic Steatohepatitis (NASH) of the liver. This randomized, double-blind phase 2 trial will evaluate Saroglitazar 1mg, 2mg and 4mg Vs. Placebo. The announcement was made on Saturday, 4 June 2016.