Markets pare initial gains, Nifty slips below 9,400 ahead of inflation data

The S&P BSE Midcap and the S&P BSE Smallcap indices edged higher by 0.1% each

The benchmark indices pared initial gains to slip in red   on Friday tracking mixed trend seen in Asian markets after a downbeat day on Wall Street. 

At 11:36 am, the S&P BSE Sensex was trading at 30,172, down 78 points, while the broader Nifty50 was ruling at 9,392, down 30 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices tanked 0.7% and 0.3%, respectively. 

"Despite the rallies losing fizz, downside momentum did not dominate suggesting that the 9500-9550 objective is still in play, atleast as long as Nifty stays above 9,430. A direct fall below 9,386 could dilute the bullish bias, but a collapse is ruled out, atleast until VIX or other indicators signal," said Geojit Financial Services in a technical note. 

Buzzing stocks

Asian Paints shed over 3% to Rs 1,131 after the company reported 10.13% increase in consolidated net profit at Rs 479.61 crore in the March quarter, but the company's consolidated Ebitda (earnings before interest, taxes, depreciation and amortization) margins contracted by 100 basis points to 18% year-on-year. The stock was the top loser on Sensex and Nifty both.  

Glenmark Pharmaceuticals dipped 16% to Rs 760 after the company missed its March-quarter earnings estimate. It reported a consolidated net profit of Rs 184 crore in March 2017 quarter (Q4FY17), below an average analysts estimate of Rs 548 crore. The company had posted profit of Rs 149 crore in the same quarter year ago.

Dr Reddy’s Laboratories hit 52-week low of Rs 2,554 in intra-day trade ahead of its January-March quarter (Q4FY17) results today. Since February 3, post October-December (Q3FY17) results, the stock of drug Company has underperformed the market by falling 19% as compared to 7% rise in the S&P BSE Sensex.

Infosys gained 2% to Rs 963 following news reports that the company has delayed salary increases to at least July and even later for senior employees. The stock was the top Sensex gainer.

Govt to unveil new IIP, WPI series today

The government will release the new series of Index of Industrial Production (IIP) as well as Wholesale Price Index (WPI), with 2011-12 as the base year, so as to map economic activities more accurately.

The monthly WPI for April under the new series will be released on May 12 instead of May 15, the Commerce Ministry said in a statement.

The data for both the indices will be released at a joint press conference for the revision of base year from 2004-05 to 2011-12. It will be addressed by the top brass of both the ministries: commerce and statistics.  

Global markets

Asian shares inched up, hobbled by a downbeat day on Wall Street but still on track for weekly rises, while oil prices extended gains on hopes for output cuts.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%, shy of nearly two-year highs probed in the previous session but still up 1.8% for the week.

Japan's Nikkei stock index slipped 0.4% in early trading.

US stocks fell on Thursday after several large department stores reported worse-than-expected sales drops while Macy's released results for a dismal quarter, and political drama in Washington continued to unsettle investors. 

The Dow Jones Industrial Average fell 0.11% to end at 20,919.42 points and the S&P 500 lost or 0.22% to 2,394.44.

The Nasdaq Composite dropped 0.22% to 6,115.96.

(With inputs from Reuters)