Key benchmark indices held firm in afternoon trade as reports suggesting monsoon rains are expected to arrive on the southern Kerala coast two days ahead of schedule boosted sentiment. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 150.56 points or 0.5% at 30,472.68. The Nifty 50 index was up 35.70 points or 0.38% at 9,481.10. Realty and capital goods stocks traded mixed. Punjab National Bank gained after announcing turnaround in Q4.
Good prospects of monsoon rains will further ease inflation going forward and raise a case for rate cuts by the central bank, which will help boost economic activity.
After a gap-up opening on positive Asian cues, the key benchmark indices extended gains and hit record high levels in early trade. Indices trimmed gains in morning trade as stocks took a breather after an initial upmove. The market held firm and hovered in positive zone in a small range later during the session.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,352 shares rose and 1,222 shares fell. A total of 177 shares were unchanged.
Punjab National Bank gained 2.13% after the bank reported net profit of Rs 261.90 crore in Q4 March 2017 compared with net loss of Rs 5367.14 crore in Q4 March 2016. Total income rose 18.31% to Rs 14989.33 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 16 May 2017.
Maruti Suzuki India rose 0.94% after the company launched new Dzire sedan nationally today, 16 May 2017. The announcement was made during market hours today, 16 May 2017. The petrol variant of the vehicle is priced between Rs 5.45 lakhs to Rs 8.41 lakhs and diesel variant between Rs 6.45 lakhs to Rs 9.41 lakhs ex-showroom Delhi.
Realty stocks traded mixed. DLF (up 0.52%), Sobha (up 0.92%), Unitech (up 3.95%), NBCC (up 0.23%), and Godrej Properties (up 0.44%) edged higher.
D B Realty (down 0.62%), Indiabulls Real Estate (down 1.47%), Oberoi Realty (down 0.24%) and Housing Development & Infrastructure (HDIL) (down 1.01%) declined.
Capital goods stocks were mixed. ABB India (down 0.84%), Bharat Heavy Electricals (Bhel) (down 0.76%), L&T (down 0.31%), Thermax (down 0.37%), and CG Power & Industries (down 0.37%) declined. BEML (up 0.53%), Havells India (up 1.33%), and Siemens (up 0.32%) gained.
Brigade Enterprises rose 2.22% after the company said that Tata Consultancy Services (TCS) has signed a deal for office space in Brigade Bhuwalka Icon, a 3.75 lakh square feet development strategically located on Whitefield main road in Bengaluru. The office space will house more than 4,000 IT professionals and the office is expected to start operations in around 4 months.
Brigade Group said it is building a large strategic portfolio in corporate real estate developing 10 million square feet in addition to its operating portfolio of 6 million square feet. The announcement was made after market hours yesterday, 15 May 2017.
Meanwhile, India's monsoon rains are reportedly expected to arrive on the southern Kerala coast on 30 May 2017, two days ahead of schedule. India looks likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased, K. J. Ramesh, director general of the state-run India Meteorological Department had reportedly said last week.
On the macro front, India's merchandise exports grew in double digits in dollar terms for the third consecutive month in April. Data released by the government yesterday, 15 May 2017 showed that exports grew 19.77% in April to $24.63 billion while imports rose 49.07% to $37.88 billion, leaving a trade gap of $13.24 billion.
Overseas, European and Asian stocks traded on a mixed note. In US, the S&P 500 and the Nasdaq Composite closed at fresh records yesterday, 15 May 2017 as a jump in oil prices to a two-week high lifted Wall Street sentiment. Crude rose for a fifth day, topping $49 a barrel, after Saudi Arabia and Russia supported an extension of output cuts.
The Dow Jones Industrial Average rose 85.33 points, or 0.4%, to close at 20,981.94. The S&P 500 index added 11.42 points, or 0.5%, to finish at 2,402.32. The Nasdaq Composite Index gained 28.44 points, or 0.5%, to end at 6,149.67.
In economic data, a gauge of New York-area manufacturing slumped into negative territory for the first time since the presidential election. The Empire State manufacturing index for May fell to negative 1, from positive 5.2 in April. Separately, sentiment among home builders rebounded in May, buoyed by optimistic views of demand for housing.
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