Key indices extended intraday gains and hit fresh record in mid-morning trade as firmness in Asian stocks boosted sentiment. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 101.62 points or 0.34% at 30,349.79. The Nifty 50 index rose 40 points or 0.43% at 9,447.30. Auto stocks gained. Telecom stocks were mixed.
The BSE Mid-Cap index rose 0.48%. The BSE Small-Cap index gained 0.49%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,349 shares rose and 1,054 shares fell. A total of 145 shares were unchanged.
Hindalco Industries gained 3.42% after its wholly owned subsidiary, Novelis Inc.'s net income rose 46% to $73 million on 9% rise in net sales to $2.6 billion in Q4 March 2017 over Q4 March 2016. The results were announced yesterday, 10 May 2017.
Auto stocks gained. Ashok Leyland (up 1.29%), Maruti Suzuki India (up 0.48%), Eicher Motors (up 3.16%), Bajaj Auto (up 2.27%), Tata Motors (up 0.13%) and TVS Motor Company (up 0.79%) gained.
Mahindra & Mahindra (M&M) advanced 0.39% after the company said that India Ratings and Research (Ind-Ra) has affirmed the company's long-term issuer rating at IND AAA. The outlook is stable. Ind-Ra continues to take a consolidated view of M&M after excluding its financial services subsidiary Mahindra & Mahindra Financial Services. The announcement was made after market hours yesterday, 10 May 2017.
Hero MotoCorp rose 1.93%. The company's net profit fell 13.9% to Rs 717.75 crore on 7.9% decline in net sales to Rs 6915.20 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 10 May 2017.
Hero MotoCorp said it took a proactive approach towards the launch of BS IV-compliant vehicles, and liquidated large BS III inventory, leading up to 29 March 2017. In the last two days of the month, the company took some tactical steps to assist its dealers and incentivise the customers with an objective to liquidate the remaining BS Ill stocks, resulting in a one-time impact to the margins of the fourth quarter.
EBITDA (earnings before interest, taxes, depreciation and amortization) margin stood at 12.79% in Q4 March 2017, lower than 14.66% in Q4 March 2016.
Hero MotoCorp's retail sales have been outpacing wholesale numbers, as a result of which the company has now been able to maintain healthy dealer inventory. Meanwhile, input costs have been on an upward trend. To partially offset the commodity costs, Hero MotoCorp raised prices ranging from Rs 500 to Rs 2200 on some of the models, with effect from 1 May 2017.
SML Isuzu lost 2.08% after net profit dropped 46.91% to Rs 8.85 crore on 15.87% growth in total income to Rs 371.22 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 10 May 2017.
Telecom stocks were mixed. Tata Teleservices (Maharashtra) (up 0.37%) and MTNL (up 1%) gained. Idea Cellular (down 1.44%), Bharti Airtel (down 1.64%) and Reliance Communications (down 0.45%) declined.
Shares of Bharti Infratel gained 0.82%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Overseas, most Asian stocks advanced as global equities remained at record levels and a rebound in oil boosted energy producers.
Japan's current account balance posted a stronger-than-expected surplus in March on solid income from overseas investments, maintaining a run of uninterrupted monthly surpluses that has continued for almost three years. The surplus of 2.91 trillion yen ($25.45 billion) marked the 33rd straight month in the black, finance ministry data showed.
Most US stocks finished only slightly higher to hit record highs yesterday, 10 May 2017 as a quiet week of trading continued.
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