A range bound movement was witnessed as key benchmark indices languished in negative zone in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was down 41.88 points or 0.16% at 25,646.98. The Nifty 50 index was currently down 17.65 points or 0.22% at 7,848.40. The market breadth indicating the overall health of the market turned negative from positive. On BSE, 1,135 shares fell and 1,125 shares rose. A total of 125 shares were unchanged. The BSE Mid-Cap index was currently up 0.05%. The BSE Small-Cap index was currently up 0.18%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks witnessed a mixed trend. Japanese stocks edged higher after finance minister Taro Aso told a parliamentary session today, 10 May 2016, that it would be natural for the Japanese government to intervene if the yen were to gain abruptly against the US dollar. The Nikkei 225 Average settled 2.15% higher. A strong local currency puts pressure on the earnings of exporters because it can make their goods more expensive overseas. The Japanese finance minister yesterday, 9 May 2016, said that he was prepared to undertake intervention in the foreign-exchange market.
Chinese stocks witnessed a mixed trend after inflation data. In mainland China, the Shanghai Composite index was currently up 0.34%. In Hong Kong, the Hang Seng index was currently off 0.02%. The latest data showed that China's consumer price index remained unchanged at 2.3% in April from a year earlier. The producer price index declined 3.4% in April from a year earlier, compared with a 4.3% year on-year drop in March.
Most US stocks edged higher yesterday, 9 May 2016, as gains for drug companies were almost cancelled by sharp losses for metals and energy companies. Minneapolis Fed President Neel Kashkari said in a speech yesterday, 9 May 2016, that he supported the current dovish stance of the Federal Reserve. Chicago Fed President Charles Evans said in a speech in London yesterday, 9 May 2016, that a stronger labor market is underpinning growth prospects. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
Most IT stocks dropped. HCL Technologies (down 0.28%), TCS (down 0.33%), Infosys (down 0.01%), and Wipro (down 0.23%) edged lower. Tech Mahindra rose 0.9%.
Realty stocks were mixed. DLF (down 0.47%), D B Realty (down 0.5%) and Housing Development & Infrastructure (HDIL) (down 0.89%) declined. Sobha (up 0.55%), Indiabulls Real Estate (up 0.23%), Unitech (up 0.1%), NBCC (up 0.67%), Godrej Properties (up 0.2%), and Oberoi Realty (up 1.81%) edged higher.
Hindalco Industries fell 2.02% on worries that increase in Chinese output could further weigh on global aluminium prices. Reports indicated that China's aluminium output increased to 84,500 tonnes per day in March, up from 71,400 tonnes per day in February. Aluminum prices have been on a sustained downtrend in the past few days. China is the world's largest consumer of steel, copper and aluminum.
Mangalore Chemicals & Fertilizers dropped 3.52% after the company announced after market hours yesterday, 9 May 2016, that it has stopped urea production at its urea manufacturing units in Dakshina Kannada district and Mangalore city from 7 May 2016 due to non-availability of water. The production will resume once the water is available. On 27 April 2016, the company had announced that it initiated operation of ammonia and urea plants at reduced capacity due to acute water shortage in Dakshina Kannada district and Mangalore city.
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