Broader market tumbles

Key benchmark indices ended the volatile session on a positive note. The barometer index, the S&P BSE Sensex, rose 106.05 points or 0.35% to 30,570.97, as per the provisional closing data. The Nifty 50 index rose 11.40 points or 0.12% to 9,439.30, as per the provisional closing data. Gains in index pivotal ITC supported key benchmarks at lower levels, while selling in bank shares capped gains. Broader market, however, succumbed to selling pressure.

The Sensex rose 51.95 points, or 0.17% at the day's low of 30,516.87 in afternoon trade. The index rose 247.23 points, or 0.81% at the day's high of 30,712.15 at the onset of trading session. The Nifty was flat at the day's low of 9,427.90 in late trade. The index rose 70.75 points, or 0.75% at the day's high of 9,498.65 at the onset of trading session.

Among secondary barometers, the BSE Mid-Cap index provisionally fell 1.21%. The BSE Small-Cap index provisionally fell 1.14%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,838 shares fell and 888 shares rose. A total of 185 shares were unchanged.

The total turnover on BSE amounted to Rs 4803.23 crore, higher than turnover of Rs 4134.78 crore registered during the previous trading session on Friday, 19 May 2017.

Cigarette major ITC jumped 6.14% to Rs 303.45 amid hope that the stock could soon see a re-rating as the tax policy under Goods & Services Tax overhang ended. The stock hit a high of Rs 304.90 and low of Rs 291 in intraday trade.

The cess on cigarettes under GST tax rate was reportedly tax neutral for the company. The GST tax rate on cigarettes has been fixed at 28%, while a 5% cess and duty per stick will also be levied, bringing total tax incidence to the current range of 60%. Cigarette division contributed nearly two-thirds of ITC's total revenues.

ITC's hotel business will be taxed at a high 28%. However, reports said this was along the expected lines. Setting the stage for rollout of GST from 1 July, the Centre and states on 18 May 2017 decided on rates for specific products which may lead to lower prices for a majority of products of mass consumption.

The GST tax reform will subsume central and state levies such as excise duty, additional duties of customs, service tax, value added tax, central sales tax, entry tax, octroi and luxury tax and is expected to clean up the messy indirect tax structure.

Metal shares reversed early gains and ended lower. Bhushan Steel (down 3.66%), Hindustan Copper (down 2.71%), JSW Steel (down 0.85%), NMDC (down 0.85%), Hindalco Industries (down 0.84%), Vedanta (down 0.61%), Tata Steel (down 0.49%), Steel Authority of India (down 0.41%) and National Aluminium Company (down 0.15%), edged lower. Hindustan Zinc (up 0.55%) and Jindal Steel & Power (up 2.15%), edged higher.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for July 2017 delivery was currently down 0.02% at $2.5810 per pound on the COMEX.

Cement shares edged lower. Ambuja Cements (down 3.03%), ACC (down 3.03%) and UltraTech Cement (down 2.07%), edged lower.

Grasim Industries was down 1.40%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Corporation Bank declined 5.75% to Rs 53.30 after the company reported higher bad loans in Q4. The result was announced on Saturday, 20 May 2017.

Corporation Bank's gross non-performing assets (NPAs) stood at Rs 17045.22 crore as on 31 March 2017 as against Rs 15827.99 crore as on 30 December 2016 and Rs 14544.24 crore as on 31 March 2016. The ratio of gross NPAs to gross advances stood at 11.7% as on 31 March 2017 as against 11.26% as on 31 December 2016 and 9.98% as on 31 March 2016. The ratio of net NPAs to net advances stood at 8.33% as on 31 March 2017 as against 7.64% as on 31 December 2016 and 6.53% as on 31 March 2016. The bank's provisions and contingencies fell 51.63% to Rs 948.01 crore in Q4 March 2017 over Q4 March 2016 of which provisions for NPAs dropped 56.62% to Rs 852.97 crore in Q4 March 2017 over Q4 March 2016. Corporation Bank reported net profit of Rs 159.98 crore in Q4 March 2017 compared with net loss of Rs 510.96 crore in Q4 March 2016. Total income rose 9.8% to Rs 5730.48 crore in Q4 March 2017 over Q4 March 2016.

Overseas, most European stocks were trading higher as investors digested a multi-billion dollar merger in the chemicals industry between Huntsman Corporation and Switzerland's Clariant to create a $14 billion chemicals giant.

Asian equities ended mixed. A weekend missile test by North Korea that raised further concerns on its ability to deliver a nuclear warhead as far as the US states of Hawaii and Alaska.

Japan's Nikkei 225 rose 0.45%. Japanese exports rose 7.5% in April, buoyed by strong demand in Asia for semiconductors, semiconductor-making equipment and steel. It was the fifth consecutive month of increase for exports, data from Japan's Ministry of Finance showed.

US stocks rose on Friday, 19 May 2017, but closed below their session highs on renewed concerns about Donald Trump's presidency, following two new media reports of possible coordination between Russia and Trump's election campaign.

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