Key benchmark indices hovered in a small range in positive zone in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 129.10 points or 0.43% at 30,317.25. The Nifty 50 index was up 42.45 points or 0.45% at 9,443.35. Hopes of an interest rate cut by the Reserve Bank of India (RBI) after the latest data showed a sharp fall in headline retail inflation boosted sentiment on the domestic bourses. IT stocks declined. Most power generation stocks gained.
The Sensex gained 169.81 points or 0.56% at the day's high of 30,357.96 in early trade, its highest level since 11 May 2017. The index rose 85.47 points or 0.28% at the day's low of 30,273.62 in afternoon trade. The Nifty gained 47.20 points or 0.5% at the day's high of 9,448.10 in early trade, its highest level since 11 May 2017. The index rose 22.20 points or 0.23% at the day's low of 9,423.10 in afternoon trade.
Trading for the week began on an upbeat note as the market reacted positively to macroeconomic data released with changes in new base-year series for wholesale price index (WPI) inflation and index of industrial production (IIP). Key indices held firm later during the session.
On the macro front, newly released WPI inflation was sharply lower to 3.9% in April from 5.3% in March. The new IIP series recorded a higher-than-expected growth of 2.7% in March compared to 1.9% in February. The base year for WPI and IIP was revised to 2011-12. CPI (Consumer Price Index) inflation slipped to a record low of 2.99% in April compared to 3.89% in March.
Headline retail inflation is now well below the Reserve Bank of India's medium term target of 4%. The data will provide guidance for the next monetary policy on 7 June 2017.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,468 shares rose and 1,271 shares fell. A total of 156 shares were unchanged.
IT stocks declined. Infosys (down 1.3%), Wipro (down 0.05%), HCL Technologies (down 0.05%), Oracle Financial Services Software (down 0.45%), Tech Mahindra (down 0.44%), MindTree (down 0.24%), TCS (down 0.36%) fell. Hexaware Technologies (up 2.05%) and MphasiS (up 1.55%) gained.
Most power generation stocks gained. Tata Power Company (up 0.55%), CESC (up 1.22%), NTPC (up 0.47%), Torrent Power (up 0.02%), Reliance Power (up 0.03%), NHPC (up 0.97%), JSW Energy (up 2.32%) edged lower. Reliance Infrastructure (down 0.89%), Jaiprakash Power Ventures (down 0.21%), Adani Power (down 0.17%) fell.
GMR Infrastructure rose 3.92% after the company announced entering into agreements for divestment of its fully-owned Indonesian coal mining entities to Indonesia's PT GEMS. The announcement was made after market hours on Friday, 12 May 2017.
GMR Energy Netherlands BV, and GMR Infrastructure Overseas, subsidiaries of GMR Infrastructure, entered into conditional share purchase agreement (CSPA) with PT Golden Energy Mines Tbk, Indonesia for selling 100% equity shareholding. The company will also sell mandatorily convertible bonds (MCB's) in PT Dwikarya Sejati Utama (PT DSO), PT Duta Surana Internusa (PT DSI), PT Unsoco (PT UNS) and PT Barasentosa Lestari (PT BSL). This agreement is subject to the parties securing various statutory approvals.
Avanti Feeds hit an upper circuit limit of 20% at Rs 1,077.95 after the company reported robust Q4 March 2017 results on Saturday, 13 May 2017. On a consolidated basis, Avanti Feeds' net profit rose 168.59% to Rs 83.88 crore on 50.80% increase in net sales to Rs 699.30 crore in Q4 March 2017 over Q4 March 2016.
The company's consolidated net profit rose 36.10% to Rs 214.35 crore on 35.42% increase in net sales to Rs 2701.98 crore in the year ended March 2017 over the year ended March 2016.
Borosil Glass Works surged 10.07% after the company reported net profit of Rs 8.92 crore in Q4 March 2017, as against net loss of Rs 6.51 crore in Q4 March 2016. Borosil Glass Works' board recommended dividend of Rs 25 per share for FY 2017. The board also approved 10-for-1 stock split proposal. The result was announced on Saturday, 13 May 2017.
Overseas, European stocks were trading little changed, paring an earlier advance, as gains in commodity and energy producers were offset by losses in drugmakers. Most Asian stocks were trading higher as investors continued to shake off reasons to worry.
On the macro front, official data released today, 15 May 2017 showed Chinese industrial output and retail sales rose less than expected in April, adding to concerns over the strength of the world's second-largest economy. However, there was optimism over infrastructure spending after President Xi Jinping laid out a sweeping framework for Chinese-style globalization, pledging $78 billion in financing.
Over the weekend, North Korea tested a new type of missile, and a global cyberattack hit computers in business, government and health care.
Meanwhile, a G7 communique issued on Saturday, 13 May 2017 said the group would use all policy tools - fiscal, structural and monetary - to boost economic growth. Several officials raised concerns about risks to global growth from the US President Donald Trump administration's stance on trade and tax policy.
US markets ended narrowly mixed on Friday, 12 May 2017, as investors digested weak retail sales and inflation data as well as disappointing earnings updates from the likes of Nordstrom and J C Penney. A gauge of US consumer sentiment unexpectedly increased in May, offering some respite.
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