A bout of volatility was witnessed in mid-afternoon trade as key indices trimmed gains after regaining strength and hitting fresh intraday high after a firm start to trade for European stocks. At 14:20 IST, the barometer index, the S&P BSE Sensex was up 33.92 points or 0.11% at 29,960.07. The Nifty 50 index rose 11.10 points or 0.12% at 9,325.15. The Sensex was trading below the psychological 30,000 mark after regaining that mark once again during the session in mid-afternoon trade.
Earlier, the movement of indices was restricted within a small range in positive terrain till afternoon trade tracking quiet trade in Asian stocks and tiny gains in US stocks overnight. Shares of power generation and power distribution companies gained. Most FMCG stocks also gained.
The BSE Mid-Cap index rose 0.13%. The BSE Small-Cap index gained 0.65%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,471 shares rose and 1,236 shares fell. A total of 163 shares were unchanged.
Most FMCG stocks gained. Tata Global Beverages (up 0.72%), Nestle India (up 0.21%), Marico (up 0.01%), Britannia Industries (up 1.13%), Procter & Gamble Hygiene and Health Care (up 2.5%), Godrej Consumer Products (up 6.91%), Bajaj Corp (up 0.12%) and Colgate Palmolive India (up 1.67%) gained. Jyothy Laboratories (down 0.22%), Hindustan Unilever (HUL) (down 0.15%), Dabur India (down 0.15%), and GlaxoSmithkline Consumer Healthcare (down 0.63%) declined.
Shares of power generation and power distribution companies gained. Torrent Power (up 1.21%), NTPC (up 0.25%), JSW Energy (up 4.41%), Tata Power Company (up 0.18%), Adani Power (up 1.13%), Reliance Infrastructure (up 1.71%) and Reliance Power (up 1.28%) gained. NHPC declined 1.58%.
Powergrid Corporation of India declined 0.4%. The company said that Department of Telecommunications, Ministry of Communications, Government of India has granted unified license dated 2 May 2017 to the company with national long distance and internet service provider-category A service authorizations for providing telecom services. The license is valid for 20 years. The announcement was made during market hours today, 9 May 2017.
Shares of state run coal mining major Coal India were flat at Rs 279. The stock had hit high of Rs 280.15 and low of Rs 276.50 in intraday trade.
CMI gained 3.01% after the company won an order worth Rs 36.24 crore by GETCO for supplying cables. The announcement was made after market hours yesterday, 8 May 2017.
The company won an order from Gujarat Energy Transmission Corporation (GETCO) for supply of 66KV XLPE cables. The order is revenue accretive and will be delivered within two quarters of the year ending 31 March 2018 (FY 2018). CMI recently started commercial production at its newly acquired facility at Baddi, Himachal Pradesh, which was a subsidiary of General Cable Corporation. The cables for the new order will also be manufactured at the new facility.
Aarey Drugs & Pharmaceuticals rose 2.58% after the company said it received first commercial export order for 20 metric tons of Thiobromine from Germany. The order will be executed by 30 June 2017. The announcement was made during trading hours today, 9 May 2017.
Meanwhile, Finance Minister Arun Jaitley reportedly said yesterday, 8 May 2017 that the Goods and Services Tax (GST) is on schedule for implementation from 1 July 2017 and will not lead to any significant increase in prices of goods although cost of some services may see a marginal hike.
Overseas, European stocks edged higher as investors searched for the next catalyst following the French election.
German industrial production fell by less than expected in March and trade proved resilient, data showed, supporting expectations for a robust performance of Europe's biggest economy in the first quarter. Industrial output edged down by 0.4% on the month, data from the Economy Ministry showed.
Asian stocks witnessed a mixed trend. Markets in Korea are closed as voters there elect a new president after former President Park Geun-hye was removed from office over a corruption scandal.
Meanwhile, the International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5% from its previous October forecast of 5.4%, said loose monetary and fiscal policies across most of the region would underpin domestic demand. India's growth is expected to rebound to 7.2% in the FY 2018 and 7.7% in FY 2019 after disruptions caused by demonetisation, the IMF said.
In US, the S&P 500, and Nasdaq Composite indices notched records yesterday, 8 May 2017, but indexes finished little-changed as materials shares capped a climb in the energy sector. Trading activity was listless after Emmanuel Macron's closely watched, but expected, presidential election victory in France on Sunday, 7 May 2017.
In the latest commentary from Federal Reserve officials, Cleveland Federal Reserve President Loretta Mester said the Fed must be very vigilant against falling behind on needed interest-rate hikes, adding that we could risk a recession if the central bank delayed too long on normalizing rates. Separately, St. Louis Fed President James Bullard said the Fed's benchmark federal-funds rate is close to where a famous mathematical rule recommends it should be.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
