Key benchmark indices extended initial gains, with the barometer index, the S&P BSE Sensex, and the Nifty 50 index, both, hitting their highest level in almost a week. At 10:18 IST, the Sensex was up 331.13 points or 1.31% at 25,554.93. The Nifty was currently up 98.55 points or 1.27% at 7,832. The Sensex jumped 338.93 points or 1.34% at the day's high of 25,567.43 in morning trade, its highest level since 3 May 2016. The barometer index rose 74.36 points or 0.29% at the day's low of 25,302.86 at the onset of the trading session. The Nifty gained 103 points or 1.33% at the day's high of 7,836.45 in morning trade, its highest level since 3 May 2016. The index rose 20.10 points or 0.25% at the day's low of 7,753.55 at the onset of the trading session.
In overseas stock markets, Asian stocks witnessed a mixed trend. Stocks fell in mainland China after the latest data showed that China's exports and imports fell more than expected in April, underlining weak demand at home and abroad. The Shanghai Composite was currently down 2.23%. In Hong Kong, the Hang Seng index was currently up 0.37%. China's exports declined 1.8% in April in dollar terms, reversing an increase of 11.5% the previous month, the General Administration of Customs said yesterday, 8 May 2016. Imports in April fell by a sharper-than-expected 10.9% from a year earlier, compared with a 7.6% drop in March.
US stocks posted modest gains on Friday, 6 May 2016, as the weaker-than-expected April job report fanned expectations that the Federal Reserve would have to hike interest rates at a very slow pace. US non-farm payrolls increased by 160,000 in April, the smallest gain since September, and below market expectations.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,323 shares rose and 487 shares fell. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently up 0.91%. The BSE Small-Cap index was currently up 0.9%. Both these indices underperformed the Sensex.
Realty stocks rose. DLF (up 1.12%), D B Realty (up 2.11%), Sobha (up 1.07%), Indiabulls Real Estate (up 0.72%), Unitech (up 1.11%), NBCC (up 0.79%), Godrej Properties (up 1.81%), Housing Development & Infrastructure (HDIL) (up 1.33%), and Oberoi Realty (up 2.01%) edged higher.
Index heavyweight and cigarette maker, ITC rose after the company yesterday, 8 May 2016, announced that the manufacturing of cigarettes at its factories will commence progressively. The stock rose 2.05%. The company had 4 May 2016 announced temporary closure of its cigarette factories until it is in a position to comply with the rules on pictorial warnings on cigarette packs. While passing an order on 4 May 2016 transferring all writ petitions pending in various courts challenging the rules prescribing 85% pictorial warnings on cigarette packs to the Karnataka High Court, the Supreme Court said at that time all parties should endeavour to follow the existing rules on pictorial warnings on cigarette packs. The government had notified that cigarette companies have to carry warning over 85% of the pack from 1 April 2016, sharply higher than earlier 40% of the pack.
Shares of power generation and power distribution companies gained. NTPC (2.64%), Torrent Power (up 0.71%), NHPC (up 0.47%), Tata Power Company (up 1.46%), Adani Power (up 0.33%), Power Grid Corporation of India (up 0.74%), Reliance Infrastructure (up 1.03%) and Reliance Power (up 1.51%) gained.
Shares of state-run coal mining major Coal India gained 0.64% to Rs 203.75. The stock hit high of Rs 284.10 and low of Rs 281 so far during the day.
Titan Company fell 2.2% after net profit declined 14.40% to Rs 184.11 crore on 1.51% decline in net sales to Rs 2437.15 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 6 May 2016. Titan said in a statement that Q4 March 2016 and the year ended March 2016 was an extremely challenging one for the company. The challenges faced were both on account of weak market conditions for all businesses and new regulatory restrictions for the jewellery business. The performance came in the backdrop of an environment where the consumer sentiment did not pick up as expected. The strength of the company's brands was tested in an environment of subdued sales across all retail formats of the company as well as related categories. Weak consumer sentiment had an impact on retail sales across all businesses, the company said.
Titan Company also said that its board of directors approved acquisition of majority stake in Chennai-based Carat Lane Trading, a leading online jewellery brand. It sells its products through its website Caratlane.com. Carat Lane has also developed omni-channel capabilities and has currently 13 stores across the country with plans to ramp up the retail stores significantly in the future. The financial details of the acquisition will be furnished after the conclusion of the accounting due diligence of the target. The acquisition is expected to be completed on or before mid June 2016. Mr. Bhaskar Bhat, Managing Director of the Company stated that for Titan, the acquisition brings significant capabilities in the e-commerce space along with a brand, a customer segment and an exciting business model.
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