Key benchmark indices traded in a small range amid negative bias in mid-morning trade as shares of index heavyweights HDFC and L&T dropped. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 125.52 points or 0.36% at 35,023.60. The Nifty 50 index was down 33.55 points or 0.31% at 10,649.15. FMCG stocks gained. Sentiment took a hit as crude oil prices hovered near the $80 per barrel mark and sustained selling from foreign funds.
In global commodities markets, Brent crude oil futures edged higher. Brent for July 2018 settlement was up 22 cents at $79.52 a barrel. Higher crude oil prices could increase India's fiscal deficit and current account deficit and stoke fuel price inflation.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 830.94 crore yesterday, 17 May 2018 as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 428.92 crore yesterday, 17 May 2018, as per provisional data.
Domestic stocks drifted lower in early trade. Stocks continued to trade with weakness in in morning trade.
The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.32%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,149 shares fell and 1,042 shares rose. A total of 127 shares were unchanged.
Index heavyweight and housing finance major HDFC lost 0.96% to Rs 1,857.
Index heavyweight and engineering & construction major L&T dropped 1.3% to Rs 1,346.60.
FMCG stocks gained. Colgate-Palmolive (India) (up 2.11%), Britannia Industries (up 1.52%), GlaxoSmithkline Consumer Healthcare (up 0.39%), Dabur India (up 0.16%), Godrej Consumer Products (up 0.35%), Hindustan Unilever (up 1.79%), Nestle India (up 0.89%), Tata Global Beverages (up 0.3%) and Procter & Gamble Hygiene and Health Care (up 0.99%) rose.
Jyothy Laboratories (down 5.96%), Bajaj Corp (down 0.37%) and Marico (down 0.84%) fell.
Voltas lost 6.31%. On a consolidated basis, Voltas' net profit fell 3.13% to Rs 194.19 crore on 1.15% increase in net sales to Rs 2021.30 crore Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 17 May 2018.
The UN World Economic Situation and Prospects (WESP) as of mid-2018, said GDP growth in India is expected to climb to 7.5 and 7.6% in fiscal years 2017-18 and 2018-19 respectively, as robust private consumption and benefits from past reforms help the country's GDP gain momentum but sustained recovery in private investment remains a crucial challenge. This is a substantial recovery from the 6.7% growth India registered in fiscal year 2017, according to a UN report.
Among the major economies, growth in India is gaining momentum, underpinned by robust private consumption, a slightly more supportive fiscal stance and benefits from past reforms, the report said.
Overseas, Asian stocks were trading on a mixed note as investors appeared to be readjusting their expectations about trade negotiations between the US and China.
As high-level meetings between the world's two largest economies were being conducted in Washington, President Donald Trump kept expectations low, reportedly saying that China had become spoiled and that he doubted negotiations would be successful.
The three main US equity benchmarks finished lower yesterday, 17 May 2018 as selling in technology shares offset an advance in the energy sector. In US economic data, initial jobless claims rose by 11,000 to 222,000 in the latest week, the highest level in a month. The Philadelphia Fed manufacturing index came in at 34.4 in May.
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