Key benchmark indices were trading with small gains after regaining positive terrain in afternoon trade as firm start to European stocks and domestic data showing wholesale price inflation easing in May, supported gains on the bourses. At 13:20 IST, the barometer index, the S&P BSE Sensex, was off 31.86 points or 0.11% at 31,135.35. The Nifty 50 index was down 3.85 points or 0.04% at 9,610.75. Index heavyweight Reliance Industries jumped.
Trading activity remained within a small range around the flat line so far as investors chose to stay on the sidelines and awaited clarity on the Federal Reserve's future path for US policy.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,374 shares fell and 1,100 shares rose. A total of 164 shares were unchanged.
Auto stocks traded mixed. Ashok Leyland (down 0.84%), Eicher Motors (down 0.62%), and TVS Motor Company (down 1.32%) declined. Maruti Suzuki India (up 0.27%), Hero MotoCorp (up 1.21%), Tata Motors (up 0.54%) and Bajaj Auto (up 0.02%) gained.
Mahindra & Mahindra (M&M) declined 0.38%. The company said that its board of directors at a meeting held on 13 June 2017, approved sale of a part of its shareholding in Mahindra Logistics (MLL), a subsidiary of the company, as part of the proposed initial public offer (IPO) of MLL, subject to requisite approvals and market conditions.
The size of the stake sale, price and other details of the IPO will be determined in due course by a committee of directors. The announcement was made after market hours yesterday, 13 June 2017.
Capital goods stocks were also mixed. Bharat Heavy Electricals (Bhel) (down 1.21%), Havells India (down 0.62%), Thermax (down 0.35%), and Siemens (down 0.62%) declined. Bharat Electronics (up 0.82%), L&T (up 0.69%), and ABB India (up 0.6%) gained.
HCL Technologies dropped 0.44%. The company launched General Data Protection Regulation (GDPR) services to help organizations comply with EU GDPR regulation. The announcement was made during market hours today, 14 June 2017.
Reliance Industries (RIL) gained 2.93% after reports its subsidiary Reliance Jio Infocomm outran all its peers in April by adding about 4 million new users to reach a consumer base of 112.55 million. TRAI data showed that Jio was also the leader in wireless broadband services with 112.55 million customers, followed by Bharti Airtel with 52.25 million, Vodafone with 39.76 million, and Idea Cellular with 24.09 million.
Among domestic macroeconomic data, the annual rate of inflation, based on monthly wholesale price index (WPI) stood at 2.17% (provisional) for the month of May 2017 over May 2016 as compared to 3.85% (provisional) for the previous month and -0.9% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was -0.35% compared to a build up rate of 2.51% in the corresponding period of the previous year. The data was announced during market hours today, 14 June 2017.
Overseas, European stocks gained in early trade . Asian stocks were mixed as investors awaited clarity on the Federal Reserve's future path for US policy after a likely rate rise later in the day. In US, the Dow and the S&P 500 closed at records yesterday, 13 June 2017, as technology shares rebounded following a two-day decline.
Among macroeconomic data, China's factory output and retail sales grew at a steady pace in May but investment slowed. Value-added industrial output, a rough proxy for economic growth, in May rose 6.5% from a year earlier, the same pace as in April. Fixed-asset investment growth slowed to 8.6% in the first five months of the year. Growth of private investment slowed slightly to 6.8% in January-May period from 6.9% in the first four months, the National Bureau of Statistics said, Retail sales were more upbeat, rising 10.7% in May from a year earlier, unchanged from April.
The US Federal Reserve's two-day meet ends today, 14 June 2017 and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the US economy have led investors to believe that the Fed will lift rates.
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