Broad market depicts weakness

Key indices trimmed losses after slipping into the red and hitting fresh intraday low in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex was down 46.93 points or 0.16% at 30,204.05. The Nifty 50 index fell 15.20 points or 0.16% at 9,407.20. Profit booking kicked in after indices scaled record highs yesterday, 11 May 2017. Telecom stocks were mixed. Realty stocks gained.

The BSE Mid-Cap index fell 0.67%. The BSE Small-Cap index shed 0.58%. The declines in both the indices were higher than the Sensex's fall in percentage terms.

The market breadth depicted weakness. There were more than two losers for every gainer on BSE. 1,402 shares fell and 662 shares rose. A total of 93 shares were unchanged.

Telecom stocks were mixed. Reliance Communications (RCom) (down 0.91%) and Bharti Airtel (down 0.38%) declined. Tata Teleservices (Maharashtra) (up 2.16%) and Idea Cellular (up 1.05%) gained.

Shares of Bharti Infratel fell 1.88%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Realty stocks declined on profit booking after the recent strong gains. Sobha (down 0.81%), Indiabulls Real Estate (down 0.78%), Unitech (down 0.18%), Oberoi Realty (down 0.56%), DLF (down 1.77%), and Omaxe (down 0.02%) edged lower.

Reliance Infrastructure rose 3.22% after Delhi Airport Metro Express (DAMEPL), an associate of the company announced that it has been awarded compensation of Rs 2950 crore by a three member Arbitration Tribunal in a unanimous decision. The tribunal was constituted from a panel nominated by DMRC. The announcement was made after market hours yesterday, 11 May 2017.

The award to Rlnfra has been granted on the basis of termination provisions of the concession agreement where the arbitration tribunal has held termination by DAMEPL as valid. The compensation covers damage as a result of breach by DMRC of its obligations under the concession agreement and material adverse effect on the ability of DAMEPL to perform its obligations under the concession agreement.

Overseas, Asian stocks were mixed. US stocks retreated yesterday, 11 May 2017 as a clutch of weaker-than-expected earnings reports and lingering concerns that President Donald Trump's pro-business agenda may face delays sapped buying appetite.

On economic data front, US producer prices showed a broad-based gain in April, which pushed the annual increase up to the largest advance in five years, government data showed. The Labor Department said on Thursday its producer-price index for final demand rose 0.5% last month.

In Europe, the Bank of England yesterday, 11 May 2017 left its key interest rate at 0.25%, meeting widely held expectations. The vote to hold the rate steady was 7-1, with board member Kristen Forbes backing an increase. The central bank left unchanged the size of its asset purchase program at 435 billion ($562 billion) and its corporate-bond purchase program at 10 billion. The bank in its quarterly inflation report reduced its forecast for 2017 economic growth to 1.9% from 2%.

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