Immense volatility was witnessed as key benchmark indices pared gains after extending intraday gains in mid-afternoon trade. Just before the sudden slide, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty had, both, surged in mid-afternoon trade on the back of rally in European stocks triggered by comments by European Central Bank policy maker Benoit Coeure. The Sensex and the Nifty had, both, hit their highest level in almost four weeks. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 39.25 points or 0.14% at 27,726.55.
Index heavyweights L&T and Reliance Industries, both, edged higher. Most IT stocks were trading higher. Auto stocks also edged higher.
Foreign portfolio investors sold shares worth a net Rs 202.12 crore yesterday, 18 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 618.54 crore yesterday, 18 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher after European Central Bank (ECB) Executive Board member Beno Coeursaid that the central bank would moderately front-load its purchases in its bond-buying program because of less market liquidity in the summer and that this move wasn't due to market conditions. Earlier during the global day, Chinese shares rose on signs of fresh investment from Beijing. US stocks edged higher yesterday, 18 May 2015, as both the Dow industrials and the S&P 500 reached all-time highs.
At 14:16 IST, the S&P BSE Sensex was up 39.25 points or 0.14% at 27,726.55. The index jumped 184.93 points at the day's high of 27,872.23 in mid-afternoon trade, its highest level since 23 April 2015. The index fell 109.63 points at the day's low of 27,577.67 in morning trade.
The Nifty was up 20.95 points or 0.25% at 8,394.60. The index hit a high of 8,427.80 in intraday trade, its highest level since 23 April 2015. The index hit a low of 8,335.20 in intraday trade.
The BSE Mid-Cap index was down 19.18 points, or 0.18% at 10,647.89, underperforming the Sensex. The BSE Small-Cap index was up 36.45 points or 0.33% at 11,184.37, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,385 shares rose and 1,204 shares fell. A total of 133 shares were unchanged.
Index heavyweight Larsen & Toubro was up 1.42% at Rs 1,633.50. The stock hit a high of Rs 1,633.70 and a low of Rs 1,609.25 so far during the day.
Another index heavyweight Reliance Industries was up 1.33% at Rs 902.30. The stock hit a high of Rs 904.95 and a low of Rs 887.10 so far during the day.
Colgate-Palmolive (India) rose 0.21% to Rs 2,080. The company's net profit rose 24% to Rs 163.60 crore on 11% growth in net sales to Rs 1022.20 crore in Q4 March 2015 over Q4 March 2014. The result was announced during market hours today, 19 May 2015. Colgate-Palmolive (India) said that it posted a robust volume growth of 5% both for Q4 March 2015 and for the year ended 31 March 2015 (FY 2015) in toothpaste. The company continued to enhance its leadership position in toothpaste category by registering a volume market share of 57.8% for the period January-April 2015, an increase of 70 basis points over the same period of the previous year. The flagship brands -- Colgate Dental Cream, Active Salt, Max Fresh and Visible White -- have contributed to this growth, the company said. Colgate-Palmolive (India) further maintained its leadership position in the Toothbrush category by registering a volume market share of 42.1% for the period January-April 2015.
Most IT stocks were trading higher. Tech Mahindra (up 1.45%), Hexaware Technologies (up 0.87%), Oracle Financial Services Software (up 0.79%), HCL Technologies (up 0.33%), MphasiS (up 0.17%) and MindTree (up 0.10%), edged higher. TCS (down 0.12%), CMC (down 0.18%) and Persistent Systems (down 0.81%), edged lower.
Wipro was up 1.89%. With respect to media reports titled "Wipro faces class action complaint in US," Wipro after market hours yesterday, 18 May 2015, clarified that the company complies with the laws of all of the countries in which it does business, but it is not immune to being sued. The company would not like to comment on this specific litigation, except to say it will vigorously defend itself against these allegations, Wipro said.
Infosys was up 1.9%. The company announced after market hours yesterday, 18 May 2015, that it has become the first Indian company to join RE100 -- a global platform for major companies committed to 100% renewable power. Infosys has taken great strides during the past seven years to become sustainable in its operations. As part of its commitment to RE100, Infosys aims to become carbon neutral by 2018. The company is already working to reduce its per capita electricity consumption by 50 per cent from its 2007-2008 levels and source all its electricity from renewable resources by 2018. During fiscal year 2015, Infosys met 29% of its electricity needs -- about 72.08 million units -- for its locations across India through green power. During the same period, Infosys generated over 2911 MWh of electricity through its onsite solar PV installations across India.
Most auto stocks were trading higher. Hero MotoCorp (up 2.59%), Maruti Suzuki (India) (up 0.76%), Mahindra & Mahindra (up 0.64%), Escorts (up 0.56%), Bajaj Auto (up 0.49%) and Ashok Leyland (up 0.28%), edged higher. TVS Motor Company (down 0.07%), Tata Motors (down 1.08%) and Eicher Motors (down 1.12%) edged lower.
In overseas markets, European stocks edged higher today, 19 May 2015, after European Central Bank (ECB) Executive Board member Beno Coeursaid that the central bank would moderately front-load its purchases in its bond-buying program because of less market liquidity in the summer and that this move wasn't due to market conditions. Key benchmark indices in UK, France and Germany were up 0.4% to 2.04%.
The text from the speech that Coeurdelivered in London yesterday, 18 May 2015, was released today, 19 May 2015. Coeursaid because of low liquidity levels usually seen during the summer period, the ECB will modestly raise purchases of euro-area assets in May and June.
Separately, ECB governing council member Christian Noyer today, 19 May 2015, said that the European Central Bank is ready to take additional steps to boost inflation if its current quantitative-easing program proves insufficient.
Chinese stocks led gains in Asian stocks today, 19 May 2015. Key benchmark indices in Japan, Indonesia, South Korea and Taiwan were up by 0.24% to 1.15%. Singapore's Straits Times was off 0.15%.
Chinese shares edged higher on signs of fresh investment from Beijing. In mainland China, the Shanghai Composite index jumped 3.13%. Hong Kong's Hang Seng index rose 0.37%. China yesterday, 18 May 2015, approved a batch of railway projects and said it would speed up reform in the finance sector. China's state-planning agency approved six rail projects with a total investment of 243.8 billion yuan ($39.3 billion).
Meanwhile, China's State Council yesterday, 18 May 2015, released guidelines on capital-market reform priorities, touching on areas such as the Shenzhen-Hong Kong Stock Connect and further liberalizing interest rate and boosting the yuan's global status.
Further, China unveiled an ambitious plan to enhance the competitiveness of its manufacturing sector by encouraging innovation and raising efficiency in an effort to boost economic growth. The blueprint, titled "Made in China 2025," comes as China's factories are struggling with sluggish demand, increasing competition from other developing economies and a slowing domestic economy.
The manufacturing sector is facing new challenges: bigger constraints from the environment and resources, rising labor costs and a notable slowdown in investment and exports, the State Council, or cabinet, said on the main government website today, 19 May 2015.
The plan didn't give details of how Beijing would achieve these objectives but it shows the government's determination to revitalize a sector that was once a major growth engine.
US stocks edged higher yesterday, 18 May 2015, as both the Dow industrials and the S&P 500 reached all-time highs. At the closing bell, the Dow Jones Industrial Average gained 26 points, or 0.1%, to 18,299, a new closing peak. The S&P 500 index rose 6 points, or 0.3%, to 2,129, its ninth record close of the year. The Nasdaq Composite Index gained 30 points, or 0.6%, to 5,078, still shy of its 24 April record of 5,092.
Investors will get a closer look at the US Federal Reserve's thoughts about interest rates and economic data when the minutes of the Federal Open Market Committee meeting from its meeting held in late April 2015 are released tomorrow, 20 May 2015.
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