Key benchmark indices logged modest gains led by metal, auto and capital goods stocks. The barometer index, the S&P BSE Sensex, rose 76.17 points or 0.25% at 30,658.77, as per the provisional closing data. The Nifty 50 index rose 5.75 points or 0.06% at 9,518, as per the provisional closing data. Both the Sensex and the Nifty hit record high levels in late trade. ICICI Bank, Tata Steel and Tata Motors led the upmove.
The Sensex gained 109.85 points or 0.36% at the day's high of 30,692.45 in late trade, a record high for the barometer index. The index fell 63.46 points or 0.21% at the day's low of 30,519.14 at the onset of the session. The Nifty gained 20.35 points or 0.21% at the day's high of 9,532.60 in late trade, a record high for the index. The index fell 26.15 points or 0.27% at the day's low of 9,486.10 at the onset of the session.
Key indices dropped in early trade on negative Asian stocks. Stocks reversed initial losses in morning trade. Indices pared gains and swung between gains and losses near the flat line later during the session. Stocks traded with small gains after alternately swinging between gains and losses near the flat line in afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade. Stocks held firm in late trade.
The S&P BSE Mid-Cap index was off 0.02%. The S&P BSE Small-Cap index was off 0.18%. Both theses indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,538 shares fell and 1,257 shares rose. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 6797.34 crore, higher than the turnover of Rs 4985.91 crore registered during the previous trading session.
Metal and mining stocks rose. Vedanta (up 1.87%), JSW Steel (up 2.41%), Steel Authority of India (Sail) (up 1.46%), Jindal Steel & Power (up 2.24%), Hindalco Industries (up 0.94%), Bhushan Steel (up 1.79%), Hindustan Copper (up 0.83%) edged higher. National Aluminium Company (down 0.15%) fell.
Copper edged lower in the global commodities market. High Grade Copper for July 2017 delivery was currently off 0.37% at $2.5410 per pound on the COMEX.
Tata Steel gained 7.77% to Rs 492.50 after the company reported consolidated net loss of Rs 1168.02 crore in Q4 March 2017, lower than net loss of Rs 3041.88 crore in Q4 March 2016. The company's consolidated net sales rose 29.6% to Rs 33424.09 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 16 May 2017.
On consolidated basis, Tata Steel reported a pre-exceptional profit after tax (PAT) from continuing operations at Rs 3352 crore in Q4 March 2017 as against loss of Rs 453 crore in Q4 March 2016.
Tata Steel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 217.8% to Rs 6982 crore in Q4 March 2017 over Q4 March 2016. There was exceptional expense of Rs 4069 crore in Q4 March 2017 as against exceptional expense of Rs 2296 crore in Q4 March 2016.
Meanwhile, Tata Steel said that after prolonged and intense discussions and negotiations with the BSPS Trustee, the Pensions Regulator (TPR) and the Pension Protection Fund (PPF), the key commercial terms of a Regulated Apportionment Arrangement (RAA) have been agreed in principle between TSUK and the BSPS Trustee.
These terms are in line with the published principles of TPR and PPF. However, the RAA is subject to detailed documentation and formal approval by TPR and non-objection from the PPF, and the formal agreement of the individual entities who would be party to the RAA. These parties are in positive discussions and are hopeful of reaching final agreement shortly, Tata Steel said.
If agreement is reached and the necessary approvals are obtained, the RAA will become effective once agreed conditions are satisfied, including the payment by a member of the Tata Steel group of an agreed settlement amount of GBP 550 million to the BSPS and the provision of a 33% equity stake in TSUK, Tata Steel said.
T V Narendran, Managing Director, Tata Steel India and South East Asia, said that the company continued to outperform the market in Q4 March 2017 as well. It recorded robust sales across all its target segments and its overall volumes stood at 3.21 million tonnes which was higher by 7% sequentially.
Hindustan Unilever rose 1.08% ahead of its Q4 March 2017 result today, 17 May 2017.
Lupin rose 0.66% after the company launched Cialis (tadalafil), an oral PDE5 inhibitor, for the treatment of erectile dysfunction (ED) in adult males. Cialis was shown to improve erectile function compared to placebo upto 36 hours following dosing. The product is currently marketed in over 100 countries. The announcement was made after market hours yesterday, 16 May 2017.
Lupin has acquired the rights to market, promote and distribute Lilly's erectile dysfunction (ED) product, Cialis through its specialty field force while Lilly will be responsible for manufacturing and importing the product. The PDE5 market in India is valued at around Rs 390 crore of which Tadalafil contributes around 23%.
Meanwhile, the United Nations (UN) has revised downward India's GDP growth forecast for 2017 in its mid- 2017 report launched yesterday, 16 May 2017. India is projected to achieve a 7.3% growth in 2017, a downward revision from the 7.7% forecast for the year made when the report was launched in January. The revised report, however, projected that India will achieve 7.9% GDP growth in 2018, revising upwards its January estimates when it had said India's growth will be 7.6% next year.
Despite temporary disruptions from the demonetisation policy, economic conditions in India remain robust, underpinned by sound fiscal and monetary policies and the implementation of key domestic reforms. Yet, stressed balance sheets in the banking and corporate sectors will prevent a strong investment rebound in the near term, the report said.
Overseas, European stocks and Asian stocks were trading lower amid political and legal turmoil surrounding US President Donald Trump. Japan's core machinery orders fell short of expectations in March from the previous month. Core orders, regarded as a leading indicator of capital spending in the coming six to nine months, rose 1.4% in March from the previous month.
In US, the tech-heavy Nasdaq closed at a record for a second session in a row yesterday, 16 May 2017 as the Dow industrials and S&P 500 finished fractionally lower amid political uncertainty in the US.
Fresh reports emerged of President Donald Trump's interference in the Federal Bureau of Investigation's probe around his former National Security Advisor Michael Flynn. The latest development adds to the ongoing political turmoil after a report that the US president shared terrorism intelligence with Russian officials, an action he has since defended.
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