Indices continued to trade firm in afternoon trade despite lower opening on the European bourses. At 13:15 IST, the barometer index, the S&P BSE Sensex was up 254.27 points or 0.85% at 30,187.52. The Nifty 50 index rose 68.20 points or 0.73% at 9,385.05. The Sensex had hit record high above the psychological 30,000-mark in mid-morning trade after regaining that mark in early trade. The Nifty had also scaled record high.
The sentiment was positive after chief of the India Meteorological Department (IMD) reportedly commenting that India may likely receive higher monsoon rainfall than previously forecast.
Indices had extended gains and hit record highs in mid-morning trade after opening higher tracking firm Asian stocks.
The BSE Mid-Cap index rose 0.79%. The BSE Small-Cap index gained 0.81%. Both these indices underperformed the Sensex.
The breadth, indicating health of the market, was positive. On BSE, 1,586 shares rose and 1,074 shares fell. A total of 145 shares were unchanged.
IT stocks declined. TCS (down 1.56%), Wipro (down 1.31%), Oracle Financial Services (down 1.02%), HCL Technologies (down 0.93%) and Infosys (down 0.73%) edged lower. Tech Mahindra (up 1.55%) and Persistent Systems (up 0.82%) edged higher.
Pharma stocks advanced. Aurobindo Pharma (up 3.79%), Glenmark Pharmaceuticals (up 2.63%), Cipla (up 1.58%), Dr Reddy's Laboratories (up 0.73%) and Sun Pharmaceutical Industries (up 0.57%) edged higher. GlaxoSmithkline Pharmaceuticals (down 0.01%) and Cadila Healthcare (down 0.45%) edged lower.
Lupin was up 1.45%. The company issued clarification to the media news after market hours yesterday, 9 May 2017 the USFDA issued Form 483 citing eight observations to its Aurangabad facility after an inspection. The inspection was completed on 26 April 2017. The company is in the midst of putting together a response to address the observations.
Tata Motors rose 1.02% at Rs 431.05. 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.
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 in early trade 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.
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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