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Market ends a tad lower after volatile trade

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Capital Market
Last Updated : May 15 2018 | 3:50 PM IST

Stocks provisionally ended a tad lower, erasing strong intraday gains, after Bhartiya Janata Party's lead decreased from the halfway mark. The barometer index, the S&P BSE Sensex, fell 12.77 points or 0.04% at 35,543.94, as per the provisional closing data. The Nifty 50 index fell 4.75 points or 0.04% at 10,801.85, as per the provisional closing data. Intraday volatility was high. Realty stocks fell.

Domestic stocks began trading for the day on a firm note as initial trends showed BJP taking huge lead in Karnataka. Key benchmark indices hit fresh intraday high in morning trade triggered by trends and results showing the Bharatiya Janata Party (BJP) is set to form the government in Karnataka. Stocks trimmed gains in afternoon trade. Stocks trimmed almost entire strong intraday gains in mid-afternoon. Market hovered near flat line in late trade.

Trends and results as at 15:25 IST showed the Bharatiya Janata Party (BJP) winning 67 seats and leading in 37 seats, Indian National Congress winning 38 seats and leading in 38 seats and Janata Dal (Secular) winning 15 seats and leading in 24 seats. The Karnataka Assembly elections in a single-phase polling were held on Saturday, 12 May 2018. Polling was held in 222 constituencies of the 224-member assembly.

The S&P BSE Mid-Cap index was down 0.81%. The S&P BSE Small-Cap index was off 0.65%. Both these indices underperformed the Sensex

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,609 shares fell and 1,028 shares rose. A total of 142 shares were unchanged.

Realty stocks fell. Indiabulls Real Estate (down 5.48%), Housing Development and Infrastructure (down 0.74%), DLF (down 1.88%), D B Realty (down 7.94%), Unitech (down 0.61%), Sobha (down 0.48%), Godrej Properties (down 1.48%), Prestige Estates Projects (down 2.82%) and Oberoi Realty (down 3.11%) declined.

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IT major Wipro fell 0.35%. Wipro Gallagher Solutions (WGS), a Wipro company and a leading provider of loan origination software solutions, and Precision Risk Management Systems, Inc. (PRMS), a leading provider of performance management solutions, announced that they have partnered to deliver advanced mortgage business intelligence (BI) and customer experience management solutions to mortgage lenders.

As a part of this alliance, Wipro will offer its clients a powerful set of dashboard-driven performance management tools, including enterprise reporting, intuitive metrics and Key Performance Indicators (KPI) that focus on identifying potential problems before they progress in efforts to prevent business losses for lenders. The announcement was made after market hours yesterday, 14 May 2018.

Tata Steel rose 2.61% on reports the National Company Law Tribunal today, 15 May 2018, approved Tata Steel's bid for debt-ridden Bhushan Steel. The order was pronounced in court today, 15 May 2018, and detailed judgement is awaited, media reports suggested. Shares of Bhushan Steel rose 4.81% to Rs 23.95.

According to reports, the Committee of Creditors (CoC) had approved Rs 32500 crore deal along with 12.27% equity in Bhushan Steel offered by Tata Steel. However, some employees of Bhushan Steel had challenged it before National Company Law Tribunal (NCLT) contending that Tata Steel was not eligible under section 29 (A) of the Insolvency and Bankruptcy Code (IBC).

On the macro front, the all-India general CPI inflation increased to 4.58% in April 2018 (new base 2012=100), compared with 4.28% in March 2018, snapping consistent moderation for last three months. The corresponding provisional inflation rate for rural area was 4.67% and urban area 4.42% in April 2018 as against 4.44% and 4.12% in March 2018. The core CPI inflation increased to 5.80% in April 2018 compared with 5.23% in March 2018. The data was released by the government after market hours yesterday, 14 May 2018.

The cumulative CPI inflation had declined to 3.59% in April-April FY2018 compared with 4.52% in April-April FY2017.

Meanwhile, the President of India, as advised by the Prime Minister, directed reallocation of portfolios amongst the members of the Union Council of Ministers. During the period of indisposition of Arun Jaitley, Minister; the portfolios of Minister of Finance and Minister of Corporate Affairs held by him, be temporarily assigned to Piyush Goyal, in addition to his existing portfolios.

Rajyavardhan Singh Rathore be assigned the independent charge as Minister of State in the Ministry of Information and Broadcasting, in place of Smriti Zubin Irani, presently Minister of Information and Broadcasting.

S.S. Ahluwalia, Minister of State be relieved of the charge of Ministry of Drinking Water & Sanitation and assigned the portfolio of Ministry of State in the Ministry of Electronics & Information Technology. Alphons Kannanthanam, Minister of State be relieved of the charge of Minister of State in the Ministry of Electronics & Information Technology.

Overseas, European markets were mixed, as investors monitored key political and economic risks while oil prices hovered close to multi-year highs.

Most Asian stocks fell as investors remained cautious about key economic and political risks, while supply concerns kept crude oil prices near 3-1/2-year highs. US stock indexes posted modest gains yesterday, 14 May 2018 and the Dow ended with an eighth gain in a row, extending an uptrend on signs of easing trade tensions between the US and China.

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First Published: May 15 2018 | 3:41 PM IST

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