A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 105.08 points or 0.38% at 27,429.08.
The market sentiment was boosted by a statement from the Finance Ministry which stated that the government has managed to better its target for containing the fiscal and revenue deficits in the last financial year.
FMCG stocks edged higher. Metal shares were also in demand.
Earlier, Sensex hit one-week high and the and 50-unit CNX Nifty hit its highest level in almost a week in morning trade as these two key benchmark indices extended initial gains.
Foreign portfolio investors sold shares worth a net Rs 38.31 crore during the previous trading session on Friday, 15 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 563.60 crore on Friday, 15 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mixed. US stocks closed mostly higher during the previous trading session on Friday, 15 May 2015.
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At 11:16 IST, the S&P BSE Sensex was up 105.08 points or 0.38% at 27,429.08. The index jumped 193.31 points at the day's high of 27,517.31 in mid-morning trade, its highest level since 11 May 2015. The index gained 46.28 points at the day's low of 27,370.28 at the onset of trading session.
The CNX Nifty was up 30.55 points or 0.37% at 8,292.90. The index hit a high of 8,322.35 in intraday trade, its highest level since 12 May 2015. The index hit a low of 8,271.95 in intraday trade.
The BSE Mid-Cap index was up 47.63 points or 0.45% at 10,611.55. The BSE Small-Cap index was up 74.93 points or 0.68% at 11,115.72. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,406 shares rose and 799 shares fell. A total of 80 shares were unchanged.
FMCG stocks were in demand. Tata Global Beverages (up 0.85%), Procter & Gamble Hygiene & Health Care (up 0.66%), Godrej Consumer Products (up 0.56%), Britannia Industries (up 0.48%), Marico (up 0.35%), Bajaj Corp (up 0.28%), Colgate Palmolive (India) (up 0.11%), GlaxoSmithKline Consumer Healthcare (up 0.03%) and Dabur India (up 0.02%) edged higher. Hindustan Unilever (down 0.65%) and Jyothy Laboratories (down 1.75%) edged lower.
Nestle India was off 0.52% at Rs 6,976.05. The stock hit a high of Rs 7,327 and a low of Rs 6,945 so far during the day. The company's net profit rose 23.58% to Rs 320.28 crore on 8.05% rise in total income to Rs 2541.95 crore in Q1 March 2015 over Q1 March 2014. The Q1 result was announced after market hours on Friday, 15 May 2015.
Nestle India said that the impact of declining prices of fresh milk and derivatives compared to the increasing trend in previous year was mostly negated by the opening stock of finished goods that was manufactured when fresh milk prices were relatively higher. However, cost of materials consumed as percentage of net sales has decreased largely due to selling price increases, including carry over pricing.
Metal shares were in demand. Hindalco Industries (up 2.81%), JSW Steel (up 2.48%), Jindal Steel & Power (up 0.66%), Bhushan Steel (up 0.58%), Steel Authority of India (up 0.45%), Vedanta (up 0.24%), Hindustan Zinc (up 0.23%), National Aluminum Company (up 0.20%), Hindustan Copper (up 0.16%), NMDC (up 0.08%) and Tata Steel (up 0.01%), edged higher.
Meanwhile, the Finance Ministry announced yesterday, 17 May 2015, that the government has bettered its own financial targets during 2014-15. Based on provisional accounts for the year ended 31 March 2015 (2014-15), the fiscal deficit stood at 4% of GDP for 2014-15 as against the target of 4.1%. The fiscal deficit was 4.4% of GDP in 2013-14. The revenue deficit stood at 2.8% of GDP in 2014-15 as against target of 2.9%. The revenue deficit was 3.2% of GDP in 2013-14. The government's gross tax collections rose 9% to Rs 12.45 lakh crore in 2014-15.
Meanwhile, data released by the government after trading hours on Friday, 15 May 2015, showed that India's merchandise exports declined 13.96% to $22.05 billion in April 2015 over April 2014. Imports declined 7.48% to $33.04 billion in April 2015 over April 2014. Oil imports fell 42.65% to $7.44 billion in April 2015 over April 2014. Non-oil imports rose 12.58% to $25.60 billion in April 2015 over April 2014. The trade deficit for April 2015 was estimated at $10.99 billion, which was higher than trade deficit of $10.08 billion in April 2014.
In overseas markets, Asian stocks were mixed today, 18 May 2015. Key benchmark indices in China, South Korea, Japan, and Taiwan were up 0.01% to 0.67%. Key benchmark indices in Hong Kong, Indonesia and Singapore were off 0.03% to 0.96%.
US stocks closed mostly higher Friday, 15 May 2015, with the S&P 500 index setting a record for the second straight session. Investors grappled with weaker-than-expected economic reports which left the timing of the Federal Reserve's next rate hike still uncertain for investors.
Meanwhile, the president of the Chicago Fed Charles Evans today, 18 May 2015, said in a speech prepared for delivery to a conference in Stockholm, Sweden that he sees no compelling reason for the US Federal Reserve to be in a hurry to tighten financial conditions. Evans said that the case could even be made that the US economy needed more accommodation at the moment, according to reports. Evans is one of only two Fed officials who think the US central bank should wait until 2016 to increase interest rates.
In Europe, German politicians kept up the pressure on Greece over the weekend to implement reforms, with Economy Minister Sigmar Gabriel warning Athens in an interview that a third aid package would not be on the cards unless the Greeks made some changes. Greece is fast running out of cash and talks with its lenders have been deadlocked over their demands for Greece to implement reforms, including pension cuts and labour market liberalisation.
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