Positive market breadth

Volatility struck bourses in morning trade as the key benchmark indices once again drifted in negative zone after briefly turning positive from lower level. At 10:21 IST, the barometer index, the S&P BSE Sensex was down 37.97 points or 0.15% at 25,451.60. The Nifty 50 index was currently down 12.40 points or 0.16% at 7,802.50

The Sensex rose 117.35 points or 0.46% at the day's high of 25,606.92 at onset of the trading session. The barometer index lost 68.26 points or 0.26% at the day's low of 25,421.31 in early trade. The Nifty, rose 30.75 points or 0.39% at the day's high of 7,845.65 at onset of the trading session. The index fell 18 points or 0.23% at the day's low of 7,796.90 in early trade.

In overseas markets, Asian stocks logged gains, shrugging off soft Chinese data released over the weekend. China's investment, factory output and retail sales all grew more slowly than expected in April, adding to doubts about whether the world's second-largest economy is stabilizing, data released on Saturday showed. Industrial output rose 6% year-over-year in April, compared with 6.8% growth in March, the National Bureau of Statistics said. Fixed-asset investment in urban areas grew by a weaker-than-expected 10.5% year-over-year in the January-to-April period, compared with an annual increase of 10.7% for the first three months of 2016. Retail sales grew by a less-than-expected 10.1% in April compared with a year earlier, slowing from March's 10.5% year-over-year rise. US stocks ended lower during the previous trading session on Friday, 13 May 2016 on a slump in consumer-focused companies.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,020 shares rose and 858 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.07%. The BSE Small-Cap index was currently up 0.04%. Both these indices outperformed the Sensex.

Cement stocks fell. Ambuja Cements (down 0.48%), ACC (down 0.46%), and Shree Cement (down 1.48%) declined. UltraTech Cement rose 0.33%.

Grasim Industries was up 0.11% at Rs 4,257. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Realty stocks gained on renewed buying. Indiabulls Real Estate (up 1.88%), Housing Development and Infrastructure (up 1.15%), D B Realty (up 0.42%), Sobha (up 1.66%), DLF (up 0.74%), Godrej Properties (up 0.78%) and Oberoi Realty (up 1.53%) rose. Unitech (down 0.5%) and Parsvnath Developers (down 0.28%)declined.

Among macro data, the inflation based on wholesale price index (WPI) for the month of April 2016 is scheduled to be released by the government today, 16 May 2016. WPI stood at negative 0.85% in March 2016 as compared to a reading of negative 0.91% in February 2016.

India's weather department, the India Meteorological Department (IMD) on Sunday, 15 May 2016 said that the statistical model forecast suggests that the monsoon onset over Kerala in this year is likely to be slightly delayed. The southwest monsoon is likely to set over Kerala on 7 June 2016 with a model error of 4 days. Earlier, IMD in its release of the long range forecast for the 2016 southwest monsoon season rainfall on 12 April 2016, said that the monsoon seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA) with a model error of 5%. The LPA of the seasonal rainfall over the country as a whole for the period 1951-2000 is 89 cm.

Meanwhile, the latest data showed that India's merchandise exports continued to register year-on-year decline in value terms at the beginning of the new financial year. Merchandise exports fell 6.74% at $20.57 billion in April 2016 over April 2015. Non-petroleum exports fell 3.68% at $18.58 billion in April 2016 over April 2015. The trend of falling exports is in tandem with other major world economies, according to a statement issued by the Ministry of Commerce & Industry. Imports fell 23.1% at $25.41 billion in April 2016 over April 2015. Oil imports fell 24.01% at $5.65 billion. Non-oil imports fell 22.83% at $19.76 billion. The trade deficit fell sharply to $4.84 billion in April 2016 from $10.99 billion in April 2015. The commerce ministry released the trade data for April 2016 after trading hours on Friday, 13 May 2016.

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