Key indices were trading firm after extending intraday gains and hitting fresh record highs in mid-morning trade as positive Asian stocks aided sentiment. At 11:25 IST, the barometer index, the S&P BSE Sensex was up 240.54 points or 0.8% at 30,173.79. The Nifty 50 index rose 68.70 points or 0.74% at 9,385.55. The Sensex hit record high above psychological 30,000-mark in mid-morning trade after regaining that mark in early trade. The Nifty also scaled record high.
The reported comments of chief of the India Meteorological Department (IMD) saying India looks likely to receive higher monsoon rainfall than previously forecast also boosted sentiment.
The BSE Mid-Cap index rose 0.91%. The BSE Small-Cap index gained 0.86%. Both these indices outperformed the Sensex.
Cement stocks dropped. Telecom stocks gained.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,562 shares rose and 854 shares fell. A total of 140 shares were unchanged.
The Sensex gained 273.88 points or 0.91% at the day's high of 30,207.13 in mid-morning trade, a record high for the index. The index gained 54.19 points or 0.18% at the day's low of 29,987.44 in early trade. The Nifty gained 75.65 points or 0.81% at the day's high of 9,392.50 in mid-morning trade, a record high for the index. The index gained 19.15 points or 0.2% at the day's low of 9,336 in early trade.
Cement stocks dropped despite firm market. ACC (down 0.42%), Ambuja Cements (down 0.39%), and UltraTech Cement (down 1.28%) declined. Shree Cement rose 0.89%.
Grasim Industries declined 0.61%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Telecom stocks gained. Tata Teleservices (Maharashtra) (up 1.38%), MTNL (up 2.49%), Reliance Communications (RCom) (up 0.01%) and Idea Cellular (up 0.63%) gained.
Shares of Bharti Infratel advanced 0.27%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Bharti Airtel rose 2.75%. The company's consolidated net profit fell 69.22% to Rs 470.60 crore on 12.12% decline in net sales to Rs 21934.60 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017.
In a statement, Gopal Vittal, MD and CEO, India & South Asia, said that the sustained predatory pricing by the new operator has led to a decline in revenue growth for the second quarter in a row. The telecom industry as a whole also witnessed a revenue decline for the first time ever on a full year basis. The deteriorating health of the industry was compounded by the tsunami of incoming voice traffic from the new operator as a result of which significant investments had to be made just to carry the incoming traffic on the company's network. The net result of this was a revenue decline of 7.1% in Q4 even as EBITDA margins eroded by 2.9%. The financial year ended March 2017 (FY2017) saw a muted top line growth of 3.6% vs the double digit growth witnessed in preceding years, he added.
IDBI Bank fell 1.95% after the Reserve Bank of India (RBI), vide their letter dated 5 May 2017, initiated prompt corrective action for IDBI Bank in view of high net non-performing assets (NPA) and negative return on assets (ROA). This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities, IDBI Bank said in a statement. The announcement was made after market hours yesterday, 9 May 2017.
Petronet LNG gained 1.62% after the company's board of directors declared issue of liberal 1:1 bonus shares. The announcement was made after market hours yesterday, 9 May 2017.
Petronet LNG's net profit surged 93.74% to Rs 470.79 crore on 20.87% increase in net sales to Rs 7,191.99 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017.
Alembic gained 2.62% after consolidated net profit rose 22% to Rs 30.24 crore on 18.8% increase in net sales to Rs 32.92 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 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.
Overseas, Asian stocks rose with local drivers outpacing global geopolitical concerns. Markets had a muted reaction to the unexpected firing of James Comey, the director of the Federal Bureau of Investigation by US President Donald Trump. 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.
A reading of job openings in March was cut from February, while a report on wholesale inventories showed a gain of 0.2% in March. In other economic data, small-business sentiment fell for the third straight month in April to a reading of 104.5.
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