A divergent trend was witnessed between the two major stock market indices in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex was up 37.71 points or 0.12% at 31,065.92. The Nifty 50 index declined 0.65 points or 0.01% at 9,594.45.
The Sensex was hovering above the psychological 31,000 level after alternately moving above and below that level in intraday trade so far. It had settled above that level during the previous trading session.
The market sentiment was subdued amid lack of cues from global markets. Among other indices, the S&P BSE Mid-Cap index was down 0.76%. The BSE Small-Cap index declined 0.96%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,529 shares declined and 808 shares rose. A total of 116 shares were unchanged.
IT stocks declined as investors' sentiment in the counter dampened after Tech Mahindra reported weak Q4 earnings. Infosys (down 0.92%), Wipro (down 0.8%), Oracle Financial Services Software (down 0.59%) and Persistent Systems (down 0.48%) edged lower. HCL Technologies (up 0.45%) and TCS (up 0.34%) edged higher.
Tech Mahindra tumbled 11.02% at Rs 382.05 after consolidated net profit dropped 31.2% to Rs 588 crore on 0.8% fall in revenue to Rs 7495 crore in Q4 March 2017 over Q3 December 2016. The result was announced after market hours on Friday, 26 May 2017.
Managing Director and CEO of the company CP Gurnani, said that the IT industry is going through a paradigm shift amid changing demand pattern from the clients, technological changes and requirement for significant skill enhancement. The company has responded to these changes proactively by reimagining the business, imbibing a culture of innovation, encouraging reskilling and retraining workforce wherever necessary, he added.
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Realty stocks dropped. Godrej Properties (down 2.28%), HDIL (down 2.22%), D B Realty (down 2.1%), Sobha (down 2%), Unitech (down 1.98%), Indiabulls Real Estates (down 1.87%) and Prestige Estates Projects (down 1.4%) fell. Oberoi Realty (up 1.23%) edged higher.
DLF tumbled 7%. The company reported consolidated net profit of Rs 142.66 crore in Q4 March 2017, compared with net loss of Rs 211.11 crore in Q4 March 2016. Net sales declined 12.6% to Rs 2225.18 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours on Friday, 26 May 2017.
FDC gained 3.43% to Rs 182.50 after net profit rose 18.4% to Rs 49.08 crore on 2.2% increase in net sales to Rs 249.18 crore in Q4 March 2017 over Q4 March 2016. The company's board of directors recommended a dividend of Rs 2.25 per equity share for the year ended March 2017. The result was announced after market hours on Friday, 26 May 2017.
Among domestic developments, the arrival of monsoon rains and its progress will be closely watched. India Meteorological Department (IMD) in a press release dated 29 May 2017 said that conditions are becoming favorable for further advance of southwest monsoon and its setting over Kerala and parts of northeastern states around 30th to 31st May 2017.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Overseas, Asian stocks were trading mixed after the latest ballistic missile test by North Korea. China and Taiwan stock markets are closed for public holidays.
Reports suggested that North Korea today, 29 May 2017 fired off its third ballistic missile test in just over three weeks, a short-range ballistic missile that Japan said fell in the ocean within 200 miles of its coastline.
US stocks closed mixed on Friday, 26 May 2017, ahead of the Memorial Day holiday weekend.
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