Sensex provisionally settles with small gains

Key benchmark indices settled on a flat-to-positive note as investors were cautious ahead of Karnataka Assembly poll results tomorrow, 15 May 2018. The barometer index, the S&P BSE Sensex, rose 20.92 points or 0.06% at 35,556.71, as per the provisional closing data. The Nifty 50 index rose 0.10 points at 10,806.60, as per the provisional closing data. Most auto stocks declined.

Domestic stocks drifted higher in early trade on positive Asian stocks. Early sentiment was also boosted after exit polls reportedly showed that the Bharatiya Janata Party could emerge as the single largest party in Karnataka. Key benchmark indices extended gains and hit fresh intraday high in morning trade. Stocks trimmed gains in mid-morning trade. Indices hit fresh intraday low in afternoon trade. Key benchmark indices hovered in a small range in mid-afternoon trade. Stock cut losses in late trade and regained positive zone.

The S&P BSE Mid-Cap index was off 0.88%. The S&P BSE Small-Cap index was off 1%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 842 shares rose and 1,831 shares fell. A total of 159 shares were unchanged.

Most auto stocks declined. Tata Motors (down 1.89%), Maruti Suzuki India (down 0.16%), Mahindra & Mahindra (M&M) (down 2.19%), Eicher Motors (down 1.33%), Escorts (down 0.59%), TVS Motor Company (down 0.78%) and Ashok Leyland (down 4.42%) declined. Bajaj Auto (up 0.52%) and Hero MotoCorp (up 0.94%) rose.

Hindustan Unilever rose 0.07%. The company will declare its audited financial results for the financial year ended 31 March 2018 today, 14 May 2018.

PTC India Financial Services lost 14.31% after the company reported net loss of Rs 110.44 crore in Q4 March 2018 compared with net profit of Rs 109.76 crore in Q4 March 2017. PTC India Financial Services (PFS)'s total income fell 32.69% to Rs 290.53 crore in Q4 March 2018 over Q4 March 2017. The result was announced on Saturday, 12 May 2018.

As at 31 March 2018, the gross non-performing assets (NPAs) as at 31 March 2018 stood at Rs 838 crore compared to Rs 585 crore as at 31 March 2017. The cumulative effective debt sanction amounted to Rs 33104 crore whereas outstanding cumulative effective debt sanctioned stood at Rs 23827 crore.

The debt sanction during the year aggregated to Rs 8250 crore comprising mainly of Rs 4840 crore to renewable projects and Rs 3410 crore to other areas such as transmission, distribution, road etc. The debt sanction during the previous year aggregated to Rs 10297 crore. The debt disbursements aggregated to Rs 5103 crore during the year ended 31st March 2018 compared to Rs 4179 crore during the previous year.

On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index, stood at 3.18% (provisional) for the month of April 2018 (over April 2017) as compared to 2.47% (provisional) for the previous month and 3.85% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.69% compared to a build up rate of 0.00% in the corresponding period of the previous year. The data was released by the government during market hours today, 14 May 2018.

The government will announce consumer price inflation (CPI) for April 2018 after market hours today, 14 May 2018. CPI stood at 4.28% in March 2018.

India's industrial production (base year 2011-12=100) moderated to five-month low of 4.4% in March 2018 over March 2017, after healthy growth in the range of 7% to 8.5% for last four straight months. The deceleration in industrial production growth has moderated mainly driven by moderation in the manufacturing sector's production growth to 4.4% in March 2018. However, the growth of electricity generation output accelerated to 5.9%, while the mining output rebounded 2.8% in March 2018 after 0.4% decline in February 2018. The data was announced by government after market hours on Friday, 11 May 2018.

On the political front, exit polls reportedly showed that Karnataka could return a split verdict with the Bharatiya Janata Party as the single largest party. The Karnataka Assembly elections in a single-phase polling were held on Saturday, 12 May 2018. Polling was held in 222 constituencies of the 224-member assembly. Results will be announced tomorrow, 15 May 2018. Karnataka is one of only three states to be ruled by the Congress.

Overseas, most European stocks were trading lower with investors tracking developments in Italian politics after two populist parties said they had reached a deal to form a new government.

Asian stocks were trading higher on signs the United States and China were toning down their trade war rhetoric. US stocks edged higher on Friday, 11 May 2018 amid growing conviction that inflation will remain tame and as trade tensions eased.

Meanwhile, US reportedly plans to reintroduce sanctions against Iran have stoked anxiety in the Middle East. Iran pumps about 4% of the world's oil, and the latest development has sent oil prices near multi-year highs. The US threatened on Sunday to impose sanctions on European companies that do business with Iran, as the remaining participants in the Iran nuclear accord stiffened their resolve to keep that agreement operational.

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