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Broader market tumbles

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Last Updated : May 10 2018 | 2:31 PM IST

Key benchmark indices came off day's low and were trading near flat line in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 11.74 points or 0.03% at 35,331.09. The Nifty 50 index was down 5.05 points or 0.05% at 10,736.65. Broader market witnessed selling pressure. Investors turned cautious ahead of the Karnataka assembly elections on 12 May 2018. Higher crude oil prices also weighed on sentiment.

Key indices opened higher and briefly hit fresh intraday high in morning trade. Indices pared gains in mid-morning trade as profit booking emerged at higher levels. Selling intensified in afternoon trade. The Sensex rose 181.41 points, or 0.51% at the day's high of 35,500.76 in early trade, its highest intraday level since 2 February 2018. The index fell 69.99 points, or 0.20% at the day's low of 35249.36 in afternoon trade. The Nifty rose 43.85 points, or 0.41% at the day's high of 10,785.55 in early trade, its highest intraday level since 2 February 2018. The index fell 33.60 points, or 0.31% at the day's low of 10,708.10 in afternoon trade.

The BSE Mid-Cap index was down 1.31%. The BSE Small-Cap index was down 1.02%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 784 shares rose and 1,770 shares fell. A total of 129 shares were unchanged.

Auto stocks declined. Escorts (down 1.9%), Tata Motors (down 1.49%), Bajaj Auto (down 1.45%), TVS Motor Company (down 0.59%), Ashok Leyland (down 0.52%), Hero MotoCorp (down 0.23%) and Maruti Suzuki India (down 0.09%), edged lower. Mahindra & Mahindra (up 0.98%) and Eicher Motors (up 1.10%), edged higher.

Most power sector stocks declined. Jaiprakash Power Ventures (down 5.13%), GMR Infrastructure (down 4.1%), Reliance Power (down 2.93%), Reliance Infrastructure (down 2.69%), Tata Power (down 2.58%), Torrent Power (down 2.43%), Adani Power (down 1.22%), NHPC (down 1.06%) and NTPC (down 1%), edged lower. CESC (up 0.01%) and JSW Energy (up 0.43%), edged higher.

State-run Power Grid Corporation of India was down 1.96%. State-run Coal India was up 0.88%.

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On the political front, election will be held on 12 May 2018 in 223 constituencies out of 224 of the Karnataka Legislative Assembly, 1 constituency has been postponed following the death of B.N. Vijay Kumar, Jayanagar BJP candidate. The counting of votes and announcement of result will take place on 15 May 2018. The tenure of Karnataka assembly ends on 28 May 2018.

Overseas, shares in Europe and Asia were trading higher, tracking Wall Street's advance as oil prices traded higher after touching multi-year highs overnight.

In US, the broader stock market rallied as sharp gains in energy, financials and technology stocks propelled the main benchmarks firmly higher.

On the data front, US wholesale prices rose a scant 0.1% in April to mark the smallest gain since the end of 2017, perhaps a sign inflationary pressures are leveling off after a prolonged upsurge. The 12-month rate of wholesale inflation slipped to 2.6% from 3%. The so-called core rate of wholesale inflation also increased 0.1%. The core rate is a closely watched category that excludes food, energy and retail-trade margins. The yearly rate of core inflation slipped to 2.5% from 2.9%.

Meanwhile, the US Energy Information Administration reported Wednesday that crude supplies fell by 2.2 million barrels for the week ended 4 May 2018. The decline followed back-to-back weekly increases.

Oil prices continued their move higher after touching multiyear highs overnight as investors digested the impact renewed US sanctions on Iran would have on oil supplies.

In the global commodities markets, Brent for July 2018 settlement was hovering above $77 a barrel mark. The contract jumped $2.36 a barrel or 3.15% to settle at $77.21 a barrel during the previous trading session.

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First Published: May 10 2018 | 2:23 PM IST

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