Mid-Cap, Small-Cap indices outperform Sensex

Key benchmark indices though held firm, trimmed intraday gains and hit fresh intraday low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 100.67 points or 0.33% at 30,287.92. The Nifty 50 index was up 30.25 points or 0.32% at 9,431.15. Indian stocks rose today, 15 May 2017 as firm global stocks boosted sentiment on the domestic bourses. Prospects of central bank may cut interest rates in its next meet after data back home showed easing inflation further perked up sentiment. Auto stocks were mixed. Capital goods stocks advanced.

Trading for the week began on an upbeat note as the market reacted positively to macroeconomic data released with changes in new base-year series for wholesale price index (WPI) inflation and index of industrial production (IIP). Key indices held firm later during the session.

The Sensex gained 169.81 points or 0.56% at the day's high of 30,357.96 in early trade, its highest level since 11 May 2017. The index rose 85.47 points or 0.28% at the day's low of 30,273.62 in afternoon trade. The Nifty gained 47.20 points or 0.5% at the day's high of 9,448.10 in early trade, its highest level since 11 May 2017. The index rose 22.20 points or 0.23% at the day's low of 9,423.10 in afternoon trade.

The BSE Mid-Cap index was up 0.97%. The BSE Small-Cap index was up 0.76%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,471 shares rose and 1,150 shares fell. A total of 146 shares were unchanged.

Capital goods stocks gained on renewed buying. Bharat Heavy Electricals (Bhel) (up 0.7%), BEML (up 1.09%), Havells India (up 0.01%), ABB India (up 0.8%), Bharat Electronics (up 0.39%), L&T (up 0.03%), Thermax (up 1.04%), and Siemens (up 0.63%) gained.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 1.04%), Ashok Leyland (up 0.18%), Maruti Suzuki India (up 0.68%), Tata Motors (up 0.36%) and TVS Motor Company (up 1.18%) gained. Eicher Motors (down 0.84%), Bajaj Auto (down 0.35%), and Hero MotoCorp (down 0.56%) declined.

TVS Electronics jumped 7.23% after net profit spurted 627.5% to Rs 5.82 crore on 858.8% increase in net sales to Rs 941.32 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours on Friday, 12 May 2017.

On the macro front, the market reacted to macroeconomic data released by the government after market hours on Friday, 12 May 2017 with changes in new base-year series for Wholesale Price Index (WPI) inflation and Index of Industrial Production (IIP). The base year for WPI and IIP was revised to 2011-12.

Newly released WPI inflation was sharply lower to 3.9% in April from 5.3% in March. The new IIP series recorded a higher-than-expected growth of 2.7% in March compared to 1.9% in February. CPI (Consumer Price Index) inflation slipped to a record low of 2.99% in April compared to 3.89% in March.

Overseas, European stocks edged higher in early trade. Most Asian stocks were trading higher as investors continued to shake off reasons to worry.

On the macro front, official data released today, 15 May 2017 showed Chinese industrial output and retail sales rose less than expected in April, adding to concerns over the strength of the world's second-largest economy. However, there was optimism over infrastructure spending after President Xi Jinping laid out a sweeping framework for Chinese-style globalization, pledging $78 billion in financing.

Over the weekend, North Korea tested a new type of missile, and a global cyberattack hit computers in business, government and health care.

Meanwhile, a G7 communique issued on Saturday, 13 May 2017 said the group would use all policy tools - fiscal, structural and monetary - to boost economic growth. Several officials raised concerns about risks to global growth from the US President Donald Trump administration's stance on trade and tax policy.

US markets ended narrowly mixed on Friday, 12 May 2017, as investors digested weak retail sales and inflation data as well as disappointing earnings updates from the likes of Nordstrom and J C Penney. A gauge of US consumer sentiment unexpectedly increased in May, offering some respite.

Powered by Capital Market - Live News