Market hits fresh intraday high

A bout of volatility was witnessed in morning trade as key indices regained strength and hit fresh intraday high after trimming initial gains. However, gains were small. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 92.48 points or 0.31% at 29,951.28. The Nifty 50 index rose 34.15 points or 0.37% at 9,319.20. Firmness in Asian stocks following Emmanuel Macron's victory as France's next president supported gains on the domestic bourses.

Cement and telecom stocks gained. ACC and Ambuja Cements spurted after the companies announced that their respective boards have agreed to start the evaluation of a potential merger between the two companies with a view to combine the strengths of both businesses.

The Sensex gained 103.95 points or 0.34% at the day's high of 29,962.75 in morning trade. The index gained 18.61 points or 0.06% at the day's low of 29,877.41 in morning trade. The Nifty gained 38.90 points or 0.41% at the day's high of 9,324.20 in morning trade. The index rose 12.65 points or 0.13% at the day's low of 9,297.95 in morning trade.

The BSE Mid-Cap index rose 0.57%. The BSE Small-Cap index gained 0.61%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,434 shares rose and 718 shares fell. A total of 90 shares were unchanged.

Among sectoral action, cement stocks gained. Shree Cement (up 0.88%) and UltraTech Cement (up 2%) gained.

Grasim Industries advanced 0.46%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

ACC jumped 4.82% and Ambuja Cements surged 8.53% after the companies announced that their respective boards have agreed to start the evaluation of a potential merger between the two companies with a view to combine the strengths of both businesses. A special committee of directors, comprising largely of independent directors, has been constituted to commence the evaluation, ACC and Ambuja Cements said in separate statements after market hours on Friday, 5 May 2017.

No decision to merge has been taken and the board will decide on a merger upon receiving a recommendation from the special committee and the audit committee, the ACC statement said. ACC and Ambuja are both a part of conglomerate LafargeHolcim Group.

Telecom stocks also gained in a firm market. Tata Teleservices (Maharashtra) (up 1.41%), MTNL (up 0.42%), and Reliance Communications (up 0.16%) gained. Idea Cellular declined 0.37%.

Shares of Bharti Infratel gained 1.02% ahead of its Q4 results today, 8 May 2017. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Monsanto India rose 1.49% after net profit increased 25.04% to Rs 30.11 crore on 61.21% surge in net sales to Rs 140.01 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours on Friday, 5 May 2017.

Shoppers Stop lost 3.08% after the company reported net loss of Rs 36.07 crore in Q4 March 2017, compared with net profit of Rs 10.06 crore in Q4 March 2016. The result was announced after market hours on Friday, 5 May 2017. Total income rose 2.96% to Rs 916.06 crore in Q4 March 2017 over Q4 March 2016.

IL&FS Transportation Networks rose 2.54% after the company said that one of its subsidiaries reduced its interest cost by refinancing its debt. The announcement was made before trading hours today, 8 May 2017. Jharkhand Road Projects Implementation Company, a subsidiary of IL&FS Transportation Networks has refinanced its debt of Rs 1730 crore availed for development five road stretches in Jharkhand by issuing non-convertible debentures at a weighted average coupon of 9.45% per annum, resulting in reduction of interest cost by approximately 205 basis points.

Overseas, most Asian stocks rose led by gains in Japanese stocks amid optimism on improving global growth following Emmanuel Macron's victory as France's next president. Japan's Nikkei Average jumped 2.2%. The index was also playing catch-up with other markets in the region, having been shut since Wednesday, 3 May 2017 for public holidays.

China's April exports rose 8% from a year earlier while imports expanded 11.9%, official data showed. That left the country with a trade surplus of $38.05 billion for the month, the General Administration of Customs said.

Centrist candidate Emmanuel Macron has won the French presidential election with about 66.1% of the votes, against 33.9% for rival Marine Le Pen, according to official tallies. The victory on Sunday, 7 May 2017 for the 39-year-old Macrona staunch supporter of the European Unionis likely to placate anxious global market investors, who have fretted for weeks that far-right candidate Le Pen would win and make good on promises to yank France out of the EU, potentially unsettling the eurozone and world markets.

US stocks closed at a record Friday, 5 May 2017 on better-than-forecast data on American jobs. Data in US showed, some 211,000 people found new jobs in April as hiring rebounded from a wobbly showing in early spring, offering fresh evidence the economy is still growing at healthy clip and paving the way for the Federal Reserve to raise interest rates soon. Unemployment rate, meanwhile, dipped to 4.4% from 4.5% to match the lowest level since May 2007.

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