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A weak opening on the cards

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Domestic stocks are likely to see a gap-down opening following weak global cues. Trading of 50 index futures on the stock exchange indicates that the could slide 58 points at the opening bell.

Overseas, Asian stocks were trading lower as fears over the fallout from turmoil in Washington prompted investors to unload risky assets such as equities. In US, the Nasdaq yesterday, 17 May 2017 saw its worst one-day decline since the day after U.K.'s vote to exit from the European Union rattled markets, as turmoil in Washington cast doubt on President Donald Trump's pro-growth agenda that had helped to drive stocks to records.

Political uncertainty sent the S&P 500 index down 43.64 points, or 1.8%, to 2,357.03. The Dow sank 372.82 points, or 1.8%, to finish at 20,606.93. The Nasdaq Composite Index dropped 158.63 points, or 2.6%, to end at 6,011.24.

The administration is facing scrutiny about whether the president asked the former head of the FBI to drop an investigation, as well as questions about his handling of secret intelligence. The Justice Department named a special counsel to oversee the FBI's investigation of Russia's efforts to influence the 2016 election.

Back home,key benchmark indices logged modest gains and hit fresh record highs yesterday, 17 May 2017 as buying momentum continued unabated amid bright prospects of monsoon rains and expectations of further reforms by the government. The Sensex rose 76.17 points or 0.25% to settle at 30,658.77, a record closing high.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 731.39 crore yesterday, 17 May 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 614.51 crore yesterday, 17 May 2017, as per provisional data.

Among corporate news,Bajaj Auto, Bank of Baroda, Aditya Birla Nuvo, Cummins India and Pidilite Industries among others will release their earnings for the March 2017 quarter today, 18 May 2017.

Hindustan Unilever's net profit rose 6.19% to Rs 1183 crore on 6.39% rise in total income to Rs 8969 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

Hindustan Unilever recommended a final dividend of Rs 10 per share for the financial year ended March 2017.

Axis Bank announced that it has decided to keep the Marginal Cost of Funds based Lending Rate (MCLR) unchanged. This will be effective from 18 May 2017.

The bank's MCLR for overnight loans will be 7.9%, the rate for one month will be 7.9% and for three months it will be 8.05%. The MCLR on 6-month loans will be 8.15% and for one-year loans the rate will be 8.25%, the bank said. MCLR on two-year loans will be 8.3% and for three-year loans the rate will be 8.35%. The announcement was made after market hours yesterday, 17 May 2017.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 08:36 IST