Key indices posted good gains and hit fresh record highs as the sentiment was boosted by chief of the India Meteorological Department (IMD) reportedly commenting that India may likely receive higher monsoon rainfall than previously forecast. The barometer index, the S&P BSE Sensex rose 314.92 points or 1.05% at 30,248.17, as per the provisional closing data. The Nifty 50 index gained 93.30 points or 1% at 9,410.15, as per the provisional closing data.
The Sensex hit fresh record high above the psychological 30,000-mark after regaining that mark in early trade. The Nifty also scaled fresh record high.
Indices steadily extended gains as the day's trade progressed after opening higher tracking firm Asian stocks.
Auto stocks gained on good forecast of monsoon rains as it will boost demand for vehicles from rural sector. Zee Entertainment Enterprises gained after strong Q4 results.
The BSE Mid-Cap index provisionally rose 0.87%. The BSE Small-Cap index provisionally gained 0.75%. Both these indices underperformed the Sensex.
The breadth, indicating health of the market, was positive. On BSE, 1,622 shares rose and 1,227 shares fell. A total of 172 shares were unchanged.
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The total turnover on BSE amounted to Rs 3610.71 crore, lower than turnover of Rs 3953.75 crore registered during the previous trading session.
The Sensex gained 338.35 points or 1.13% at the day's high of 30,271.60 in late 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 97.90 points or 1.05% at the day's high of 9,414.75 in late 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.
Auto stocks gained on good forecast of monsoon rains as it will boost demand for vehicles from rural sector. Mahindra & Mahindra (M&M) (up 2.16%), Ashok Leyland (up 3.14%), Maruti Suzuki India (up 1.69%), Eicher Motors (up 2.61%), and Bajaj Auto (up 1.71%) gained. and TVS Motor Company declined 1.14%.
Hero MotoCorp rose 1.07% ahead of its Q4 results today, 10 May 2017.
Tata Motors rose 1.36%. Tata Motors Group global wholesales including Jaguar Land Rover (JLR) declined 4% to 73,691 units in April 2017 over April 2016. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range fell 36% to 18,844 units in April 2017 over April 2016. Global wholesales of all passenger vehicles rose 16% to 54,847 units in April 2017 over April 2016. The announcement was made during market hours today, 10 May 2017.
Zee Entertainment Enterprises jumped 4.8% after the company's consolidated net profit jumped 568.47% to Rs 1514.22 crore on 1.5% rise in total income to Rs 1582.89 crore in Q4 March 2017 over Q4 March 2016. The announcement was made during market hours today, 10 May 2017. There was a one time exceptional item of Rs 1223.44 crore in Q4 March 2017.
Hindalco Industries rose 0.51% after the company said that its wholly owned subsidiary Novelis Inc has entered into a joint venture agreement with Kobe Steel, a produce of aluminum rolled products in Japan. The announcement was made during market hours today, 10 May 2017.
The joint venture, to be named Ulsan Aluminum will be formed by Novelis selling Kobe Steel 50% of its ownership interest in its Ulsan, South Korea facility for $315 million. The transaction is expected to close in September 2017.
Bharti Airtel jumped 7.96%. The company's consolidated net profit fell 69.22% to Rs 470.60 crore on 12.12% decline in net sales to Rs 21934.60 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017.
In a statement, Gopal Vittal, MD and CEO, India & South Asia, said that the sustained predatory pricing by the new operator has led to a decline in revenue growth for the second quarter in a row. The telecom industry as a whole also witnessed a revenue decline for the first time ever on a full year basis. The deteriorating health of the industry was compounded by the tsunami of incoming voice traffic from the new operator as a result of which significant investments had to be made just to carry the incoming traffic on the company's network. The net result of this was a revenue decline of 7.1% in Q4 even as EBITDA margins eroded by 2.9%. The financial year ended March 2017 (FY2017) saw a muted top line growth of 3.6% vs the double digit growth witnessed in preceding years, he added.
TCS declined 1.18%. The company announced that South Africa's Mercantile Bank successfully transformed its banking operations with TCS BaNCS Digital. The announcement was made during market hours today, 10 May 2017.
Biocon fell 3.92% after US drug regulator issued form 483 with 8 observations to the company's Bengaluru facility. The announcement was made during market hours today, 10 May 2017.
Biocon said observations on form 483 is a standard outcome of any audit. The company has already responded to US Food and Drug Administration (USFDA) on all observations of the recent audit within stipulated timelines. As a policy, the company does not comment on any schedule or outcomes of regulatory inspections, unless it believes that there is a material impact. Biocon has a good track record of inspections by the USFDA, European regulators and other regulators from developed and emerging markets, the company added.
Nelco shed 4.6% after consolidated net profit fell 57.21% to Rs 0.98 crore on 1.37% increase in net sales to Rs 36.99 crore in Q4 March 2017 over Q3 December 2016. The result was announced after market hours yesterday, 9 May 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.
However, he reportedly denied the possibility that monsoon would be above normal this year. Anything between 96% and 104% of the long period average (LPA) is considered as normal. Anything under 96% is considered as below normal and 104-110% of the LPA as above normal.
Overseas, European stocks edged lower amid fresh corporate earnings and after unexpected firing of the Federal Bureau of Investigation (FBI) Director James Comey by the Trump administration.
In economic data, Germany posted a record current-account surplus in March. Germany's current-account surplus -- the gap between what it earns from and what it spends in overseas markets -- came in at EUR30.2 billion ($33 billion) in March, the Destatis statistics office said.
French industrial production rose further than expected in March on a surge in output of manufactured goods, statistics showed. Industrial output in the eurozone's second-largest economy rose 2% on month in March after a weak start to the year.
Asian stocks were mixed. 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.
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