Key indices spurted and hit fresh record highs in morning trade as firmness in Asian stocks aided sentiment. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 243.87 points or 0.81% at 30,173.02. The Nifty 50 index rose 65.75 points or 0.71% at 9,382.60. The Sensex hit record high above psychological 30,000-mark in morning trade after regaining that mark in early trade. The Nifty also scaled record high.
The reported comments of chief of the India Meteorological Department (IMD) saying India looks likely to receive higher monsoon rainfall than previously forecast also boosted sentiment.
FMCG and auto stocks gained on good forecast of rains this year.
The BSE Mid-Cap index rose 0.8%. The BSE Small-Cap index gained 0.79%. Both these indices underperformed the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,475 shares rose and 664 shares fell. A total of 98 shares were unchanged.
The Sensex gained 264.41 points or 0.88% at the day's high of 30,197.66 in morning trade, a record high for the index. The index gained 54.19 points or 0.18% at the day's low of 29,987.44 in early trade. The Nifty gained 73.30 points or 0.78% at the day's high of 9,390.15 in morning trade, a record high for the index. The index gained 19.15 points or 0.2% at the day's low of 9,336 in early trade.
FMCG stocks gained on good prospects of rains this year. Tata Global Beverages (up 1.1%), Nestle India (up 3.41%), Marico (up 1.6%), Britannia Industries (up 1.85%), Jyothy Laboratories (up 1.2%), Procter & Gamble Hygiene and Health Care (up 1.39%), Hindustan Unilever (HUL) (up 3.63%), Dabur India (up 1.85%), Colgate Palmolive India (up 1.93%), GlaxoSmithkline Consumer Healthcare (up 0.13%), Godrej Consumer Products (up 2.23%), and Bajaj Corp (up 0.24%) gained. FMCG firms derive substantial revenue from rural India.
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Auto stocks also gained on good forecast of monsoon rains as it will boost demand for vehicles from rural India. Mahindra & Mahindra (M&M) (up 2.19%), Ashok Leyland (up 0.84%), Maruti Suzuki India (up 0.93%), Eicher Motors (up 1.19%), Bajaj Auto (up 1.26%), and TVS Motor Company (up 0.09%) gained. Tata Motors declined 0.16%.
Hero MotoCorp rose 0.61% ahead of its Q4 results today, 10 May 2017.
Gujarat Mineral Development Corporation surged 9.09% after net profit jumped 135.81% to Rs 90.01 crore on 42.42% rise in total income to Rs 553.36 crore in Q4 March 2017 over Q4 March 2016. The Q4 result was announced after market hours yesterday, 9 May 2017.
InterGlobe Aviation fell 2.82% after net profit fell 24.6% to Rs 440.30 crore on 18.5% growth in revenue from operations to Rs 4848.21 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017.
InterGlobe Aviation's earnings before interest, taxation, depreciation, amortization and rent costs (EBITDAR) declined 6.6% to Rs 1449.16 crore in Q4 March 2017 over Q4 March 2016. EBITDAR margin contracted to 29.9% in Q4 March 2017, from 37.9% in Q4 March 2016. InterGlobe Aviation's board recommended a final dividend of Rs 34 per share for the year ended March 2017 (FY 2017).
Meanwhile, India looks likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased, the chief of the India Meteorological Department (IMD) reportedly said yesterday, 9 May 2017, raising prospects of higher farm and economic growth. The IMD on 18 April forecast had said this year's monsoon rains will be at 96% of the 50-year average of 89 cm.
Overseas, Asian stocks rose with local drivers outpacing global geopolitical concerns. Markets had a muted reaction to the unexpected firing of James Comey, the director of the Federal Bureau of Investigation by US President Donald Trump. Markets were closed in Singapore, Malaysia and Thailand for public holidays.
Moon Jae-in's victory in the South Korea's presidential election yesterday, 9 May 2017 removed a major overhang from the market.
China's April producer price inflation cooled more than expected. The producer price index (PPI) rose 6.4% from a year earlier, slower than economists' expectations and easing further from the previous month's gain of 7.6%. China's consumer inflation accelerated in April, as higher non-food prices helped outweigh continued falls in food prices, official data showed. The consumer price index increased 1.2% in April from a year earlier, compared with a 0.9% gain in March.
US stocks closed near session lows yesterday, 9 May 2017 as the Dow Jones industrials Average and S&P 500 index finished lower and the tech-heavy Nasdaq Composite Index carved out a new record while investors sifted through mostly upbeat earnings reports against a backdrop of falling oil prices.
A reading of job openings in March was cut from February, while a report on wholesale inventories showed a gain of 0.2% in March. In other economic data, small-business sentiment fell for the third straight month in April to a reading of 104.5.
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