FMCG, power generation stocks see mixed trend

Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 74.14 points or 0.24% at 30,656.74. The Nifty 50 index was up 13.10 points or 0.14% at 9,525.35. Both the Sensex and the Nifty hit record high levels in mid-afternoon trade. Gains were led by ICICI Bank, Tata Steel and Tata Motors. FMCG and power generation stocks saw mixed trend.

Key indices dropped in early trade on negative Asian stocks. Stocks reversed initial losses in morning trade. Indices pared gains and swung between gains and losses near the flat line later during the session. Stocks traded with small gains after alternately swinging between gains and losses near the flat line in afternoon trade.

The S&P BSE Mid-Cap index was up 0.21%. The S&P BSE Small-Cap index was up 0.01%. Both theses indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,408 shares fell and 1,283 shares rose. A total of 156 shares were unchanged.

Power generation stocks saw mixed trend. Tata Power Company (up 1.49%), NTPC (up 0.06%), Torrent Power (up 0.66%), Reliance Power (up 0.42%), Adani Power (up 0.91%), JSW Energy (up 1.36%) edged higher. Reliance Infrastructure (down 0.3%), CESC (down 0.5%), NHPC (down 0.32%) and Jaiprakash Power Ventures (down 0.03%) edged lower.

FMCG stocks saw mixed trend. Britannia Industries (down 1.61%), Godrej Consumer Products (down 0.39%), Marico (down 1.13%), Tata Global Beverages (down 0.91%), Procter & Gamble Hygiene and Health Care (down 4.81%) and Bajaj Corp (down 1.69%) rose.

Nestle India (up 1.14%), GlaxoSmithkline Consumer Healthcare (up 0.49%), Colgate-Palmolive (India) (up 0.04%), Dabur India (up 0.57%) and Jyothy Laboratories (up 0.03%) rose.

Hindustan Unilever rose 0.86% ahead of its Q4 March 2017 result today, 17 May 2017.

Dhanlaxmi Bank rose 4.97% after the bank reported net profit of Rs 8.81 crore in Q4 March 2017, as against net loss of Rs 131.60 crore in Q4 March 2016. The bank's total income declined 8.5% to Rs 296.34 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 16 May 2017.

The bank's gross non-performing assets (NPAs) stood at Rs 315.60 crore as on 31 March 2017 as against Rs 503.83 crore as on 31 December 2016 and Rs 458.92 crore as on 31 March 2016.

The ratio of gross NPAs to gross advances stood at 4.78% as on 31 March 2017 as against 7.59% as on 31 December 2016 and 6.36% as on 31 March 2016. The ratio of net NPAs to net advances stood at 2.58% as on 31 March 2017 as against 2.9% as on 31 December 2016 and 2.78% as on 31 March 2016.

Bliss GVS Pharma rose 2% after consolidated net profit spurted 108.5% to Rs 36.87 crore on 79.9% increase in net sales to Rs 258.30 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 16 May 2017.

Meanwhile, the United Nations (UN) has revised downward India's GDP growth forecast for 2017 in its mid- 2017 report launched yesterday, 16 May 2017. India is projected to achieve a 7.3% growth in 2017, a downward revision from the 7.7% forecast for the year made when the report was launched in January. The revised report, however, projected that India will achieve 7.9% GDP growth in 2018, revising upwards its January estimates when it had said India's growth will be 7.6% next year.

Despite temporary disruptions from the demonetisation policy, economic conditions in India remain robust, underpinned by sound fiscal and monetary policies and the implementation of key domestic reforms. Yet, stressed balance sheets in the banking and corporate sectors will prevent a strong investment rebound in the near term, the report said.

Overseas, European stocks and Asian stocks were trading lower amid political and legal turmoil surrounding US President Donald Trump. Japan's core machinery orders fell short of expectations in March from the previous month. Core orders, regarded as a leading indicator of capital spending in the coming six to nine months, rose 1.4% in March from the previous month.

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.

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