Stocks trimmed almost entire strong intraday gains in mid-afternoon trade on profit booking. At 14:16 IST, the barometer index, the S&P BSE Sensex, was up 32.30 points or 0.09% at 35,589.01. The Nifty 50 index was up 6.85 points or 0.06% at 10,813.45. Most IT stocks rose. Most auto stocks fell. Marketmen opine that a BJP victory in Karnataka has revived hopes of Narendra Modi's return to power in 2019, which is important for the follow up of important economic reforms taken up in the recent past.
Domestic stocks began trading for the day on a firm note as initial trends showed BJP taking huge lead in Karnataka. Key benchmark indices hit fresh intraday high in morning trade triggered by trends and results showing the Bharatiya Janata Party (BJP) is set to form the government in Karnataka. Stocks trimmed gains in afternoon trade.
Trends and results as at 14:05 IST showed the Bharatiya Janata Party (BJP) leading in 74 seats and winning 31 seats, Indian National Congress leading in 68 seats and winning 7 seats and Janata Dal (Secular) leading in 36 seats and winning 3 seats. 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.
The S&P BSE Mid-Cap index was down 0.88%. The S&P BSE Small-Cap index was off 0.42%. Both these indices underperformed the Sensex
The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. On the BSE, 1,501 shares fell and 1,056 shares rose. A total of 131 shares were unchanged.
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Sun Pharmaceutical Industries (down 2.35%), Dr. Reddy's Laboratories (down 1.6%) and Coal India (down 1.26%) were the major losers from the Sensex pack.
Most IT stocks rose. TCS (up 1.53%), Infosys (up 0.74%), HCL Technologies (up 0.03%), Tech Mahindra (up 1.24%), MindTree (up 1.25%) and Mphasis (up 5.7%) rose. Oracle Financial Services Software (down 2.3%), Hexaware Technologies (down 0.37%) fell.
IT major Wipro fell 0.22%. Wipro Gallagher Solutions (WGS), a Wipro company and a leading provider of loan origination software solutions, and Precision Risk Management Systems, Inc. (PRMS), a leading provider of performance management solutions, announced that they have partnered to deliver advanced mortgage business intelligence (BI) and customer experience management solutions to mortgage lenders.
As a part of this alliance, Wipro will offer its clients a powerful set of dashboard-driven performance management tools, including enterprise reporting, intuitive metrics and Key Performance Indicators (KPI) that focus on identifying potential problems before they progress in efforts to prevent business losses for lenders. The announcement was made after market hours yesterday, 14 May 2018.
Most auto stocks fell. Tata Motors (down 4.16%), Maruti Suzuki India (down 0.03%), Mahindra & Mahindra (M&M) (down 0.6%), Bajaj Auto (down 0.69%) and Ashok Leyland (down 3.13%) fell.
Eicher Motors (up 1.33%), Escorts (up 0.06%), Hero MotoCorp (up 0.01%) and TVS Motor Company (up 0.21%) rose.
On the macro front, the all-India general CPI inflation increased to 4.58% in April 2018 (new base 2012=100), compared with 4.28% in March 2018, snapping consistent moderation for last three months. The corresponding provisional inflation rate for rural area was 4.67% and urban area 4.42% in April 2018 as against 4.44% and 4.12% in March 2018. The core CPI inflation increased to 5.80% in April 2018 compared with 5.23% in March 2018. The data was released by the government after market hours yesterday, 14 May 2018.
The cumulative CPI inflation had declined to 3.59% in April-April FY2018 compared with 4.52% in April-April FY2017.
Meanwhile, the President of India, as advised by the Prime Minister, directed reallocation of portfolios amongst the members of the Union Council of Ministers. During the period of indisposition of Arun Jaitley, Minister; the portfolios of Minister of Finance and Minister of Corporate Affairs held by him, be temporarily assigned to Piyush Goyal, in addition to his existing portfolios.
Rajyavardhan Singh Rathore be assigned the independent charge as Minister of State in the Ministry of Information and Broadcasting, in place of Smriti Zubin Irani, presently Minister of Information and Broadcasting.
S.S. Ahluwalia, Minister of State be relieved of the charge of Ministry of Drinking Water & Sanitation and assigned the portfolio of Ministry of State in the Ministry of Electronics & Information Technology. Alphons Kannanthanam, Minister of State be relieved of the charge of Minister of State in the Ministry of Electronics & Information Technology.
Overseas, European markets were mixed, as investors monitored key political and economic risks while oil prices hovered close to multi-year highs.
Most Asian stocks fell as investors remained cautious about key economic and political risks, while supply concerns kept crude oil prices near 3-1/2-year highs. US stock indexes posted modest gains yesterday, 14 May 2018 and the Dow ended with an eighth gain in a row, extending an uptrend on signs of easing trade tensions between the US and China.
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