Stocks reversed initial losses in morning trade on fresh buying in index pivotals. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 54.12 points or 0.18% at 30,636.72. The Nifty 50 index was up 4.45 points or 0.05% at 9,516.70. Both the Sensex and the Nifty hit record high levels in morning trade. Metal and mining stocks rose. Cement stocks fell.
Key benchmark indices were trading with small losses in early trade on negative Asian stocks.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,1.31 shares rose and 964 shares fell. A total of 116 shares were unchanged.
Overseas, Asian stocks were trading lower, amid political and legal turmoil surrounding US President Donald Trump. In US, the tech-heavy Nasdaq closed at a record for a second session in a row yesterday, 16 May 2017 as the Dow industrials and S&P 500 finished fractionally lower amid political uncertainty in the US.
Fresh reports emerged of President Donald Trump's interference in the Federal Bureau of Investigation's probe around his former National Security Advisor Michael Flynn. The latest development adds to the ongoing political turmoil after a report that the US president shared terrorism intelligence with Russian officials, an action he has since defended.
Back home, ICICI Bank (up 1.68%), Hero MotoCorp (up 1.02%) and Bharti Airtel (up 0.96%) edged higher from the Sensex pack.
Metal and mining stocks rose. Vedanta (up 1.47%), JSW Steel (up 2.48%), Steel Authority of India (Sail) (up 1.14%), Hindustan Zinc (up 0.48%), Jindal Steel & Power (up 1.62%), Hindalco Industries (up 1.22%), NMDC (up 0.2%), Hindustan Copper (up 1.13%) edged higher. National Aluminium Company (down 0.15%) fell.
Copper edged lower in the global commodities market. High Grade Copper for July 2017 delivery was currently off 0.06% at $2.5490 per pound on the COMEX.
Tata Steel gained 4.68% to Rs 478.40 after the company reported consolidated net loss of Rs 1168.02 crore in Q4 March 2017, lower than net loss of Rs 3041.88 crore in Q4 March 2016. The company's consolidated net sales rose 29.6% to Rs 33424.09 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 16 May 2017.
On consolidated basis, Tata Steel reported a pre-exceptional profit after tax (PAT) from continuing operations at Rs 3352 crore in Q4 March 2017 as against loss of Rs 453 crore in Q4 March 2016.
Tata Steel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 217.8% to Rs 6982 crore in Q4 March 2017 over Q4 March 2016. There was exceptional expense of Rs 4069 crore in Q4 March 2017 as against exceptional expense of Rs 2296 crore in Q4 March 2016.
T V Narendran, Managing Director, Tata Steel India and South East Asia, said that the company continued to outperform the market in Q4 March 2017 as well. It recorded robust sales across all its target segments and its overall volumes stood at 3.21 million tonnes which was higher by 7% sequentially.
Cement stocks fell. Ambuja Cements (down 1.09%), ACC (down 1.09%), UltraTech Cement (down 0.42%) declined.
Grasim Industries was off 0.57%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Shree Cement dropped 3.86%. The company's net profit fell 54.07% to Rs 304.51 crore on 4.04% rise in total income to Rs 2834.44 crore in Q4 March 2017 over Q4 March 2016. The announcement was made after market hours yesterday, 16 May 2017.
Meanwhile, the demonetization exercise is not expected to have a long term impact on domestic demand in India, which is projected to clock a 7.9% growth in fiscal 2018, as per the United Nations report. After note-ban, there has been a hike in the collection of personal income tax, Finance Minister Arun Jaitley was quoted as saying yesterday, 16 May 2017.
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