Key benchmark indices provisionally settled with small losses in a volatile session of trade. The barometer index, the S&P BSE Sensex, fell 6.78 points or 0.02% to settle at 36,541.63. The Nifty 50 index fell 4.30 points or 0.04% to settle at 11,018.90. Volatility was high as stocks reacted to inflation data that rose less than expected while IIP fell more than expectations.
Domestic stocks nudged higher in early trade on positive Asian stocks. The Sensex trimmed gains soon after scaling a record high while the Nifty sank in negative zone in morning trade. Volatility continued as the Sensex regained positive zone while the Nifty cut losses in mid-morning trade. Stocks once again regained strength in early afternoon trade amid volatility. Indices hovered in a narrow range with small gains in afternoon trade. Key benchmark indices were hovering in a small range with positive bias in mid-afternoon trade. Indices sink in negative zone in late trade.
The Sensex fell 6.78 points or 0.02% to settle at 36,541.63, its lowest closing level since 11 July 2018. The Sensex hit high of 36,740.07 in intraday trade, its record high. The index hit low of 36,501.61 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 812 shares rose and 1825 shares fell. A total of 131 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Telecom index (down 1.98%), the S&P BSE Realty index (down 1.36%), the S&P BSE Basic Materials index (down 1.15%), the S&P BSE Industrials index (down 1.05%), the S&P BSE Capital Goods index (down 0.88%), the S&P BSE FMCG index (down 0.88%), the S&P BSE Power index (down 0.81%), the S&P BSE Healthcare index (down 0.71%), the S&P BSE Utilities index (down 0.61%), the S&P BSE Bankex (down 0.57%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.51%), the S&P BSE Auto index (down 0.33%), the S&P BSE Metal index (down 0.33%), the S&P BSE Finance index (down 0.28%) and the S&P BSE Teck index (down 0.21%) underperformed the Sensex.
IT stocks rose. Hexaware Technologies (up 0.99%), Oracle Financial Services Software (up 0.36%), Wipro (up 0.43%), TCS (up 0.52%) and Mphasis (up 3.96%) rose. MindTree (down 0.93%) and Tech Mahindra (down 1.08%) fell.
HCL Technologies fell 2.03% to Rs 984.85 on profit booking after the company said its board approved buyback of shares. The board approved buyback of up to 3.64 crore shares, or 2.61% stake, worth Rs 4000 crore at Rs 1,100 each. The announcement was made after market hours yesterday, 12 July 2018.
Ahead of the announcement, the stock rallied 8.63% in six trading sessions to Rs 1,005.30 on 12 July 2018, from its close of Rs 925.40 on 4 July 2018.
Cyient dropped 4.39% after consolidated net profit fell 32.67% to Rs 81.60 crore on 1.71% increase in net sales to Rs 1080 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours yesterday, 12 July 2018.
Realty stocks declined. Indiabulls Real Estate (down 3.82%), Housing Development and Infrastructure (down 2.02%), D B Realty (down 2.22%), DLF (down 0.9%), Unitech (down 0.72%), Sobha (down 6.37%) and Prestige Estates Projects (down 3.65%) fell. Godrej Properties (up 0.36%) and Oberoi Realty (up 0.27%) rose.
Allahabad Bank lost 3.69%. Allahabad Bank said it proposes to sell its non-core assets including divestments of its stake in joint ventures, associates, selling some of the immovable properties owned by the bank. The announcement was made after market hours yesterday, 12 July 2018.
R S Software (India) hit an upper circuit limit of 20% at Rs 46.10 after the company said it emerged as the lowest bidder in the reverse online auction conducted by National Payments Corporation of India for development and operation of platform for EFRM. The announcement was made during trading hours today, 13 July 2018.
On the macro front, government data released after market hours yesterday, 12 July 2018 showed that India's factory output growth slowed to a seven-month low in May while retail inflation quickened to a five-month high in June.
India's industrial production (base year 2011-12=100) grew at 3.2% in May 2018 over May 2017, while showing moderation in growth from a revised 4.8% increase in the previous month. The manufacturing sector's production growth decelerated to 2.8%, causing dip in overall industrial production growth in May 2018. On the other hand, the mining output has improved at higher pace of 5.7% and electricity generation output growth also accelerated 4.2% in May 2018.
The all-India general CPI inflation increased 5% in June 2018 (new base 2012=100), compared with 4.87% in May 2018. The corresponding provisional inflation rate for rural area was 5% and urban area 4.85% in June 2018 as against 4.88% and 4.72% in May 2018. The core CPI inflation increased to 6.35% in June 2018 compared with 6.12% in May 2018.
Overseas, European stocks were trading higher Friday, tracking overnight gains on Wall Street amid expectations of strong US earnings. Asian stocks rose as China refrained from detailing retaliation plans against threatened US tariff increases. The US and China reportedly signaled they were open to resuming negotiations over trade after days of exchanging retaliatory threats.
China's trade surplus narrowed to 901.32 billion yuan ($135.4 billion) in the first half of the year, down 26.7% from the same period a year earlier, data showed Friday. In January-June period, China's exports rose 4.9% from a year ago in yuan terms, and imports expanded 11.5% in yuan terms.
US stocks closed solidly higher yesterday, 12 July 2018 with the Nasdaq Composite Index ending at a record on the back of a rally in internet and technology giants, which helped to overshadow ongoing uncertainty over trade relations between the US and China.
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