Key benchmark indices may open lower tracking weak Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 67.20 points at the opening bell.
In overseas stock markets, Asian stocks dropped as crude oil retreated and technology shares declined after Apple Inc. sank to the lowest since June 2014. US stocks closed mostly lower yesterday, 12 May 2016 weighed by declines in health care and technology stocks.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 24.14 crore yesterday, 12 May 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 258.35 crore yesterday, 12 May 2016, as per provisional data.
Among macro data, inflation based on consumer price index (CPI) surged to 5.39% in April 2016 from six months low of 4.8% recorded in March 2016. The corresponding provisional inflation rate for rural area was 6.09% and urban area 4.68% in April 2016 as against 5.70% and 3.95% in March 2016. The core CPI inflation rose to 4.76% in April 2016 from 4.54% in march 2016.
Industrial production (IIP) growth moderated to 0.1% in March 2016 over March 2015 compared with 2% growth recorded in February 2016. The electricity generation surged at double-digit pace of 11.3% in March 2016. However, the mining output declined 0.1% and manufacturing production dipped 1.2% contributing to the overall slower growth in industrial output in March 2016. Both, CPI and IIP data were announced after market hours yesterday, 12 May 2016.
Among corporate news, Nestle India's net profit fell 19.13% to Rs 259 crore on 8.5% decline in total income from operations (net) to Rs 2302.46 crore in Q1 March 2016 over Q1 March 2015. The result hit the market after trading hours yesterday, 12 May 2016. The company said that the Maggi Noodles issue adversely impacted the financial performance in the first quarter. Nestle relaunched Maggi noodles in the market at the beginning of November 2015 after it withdrew the product from the market in June 2015 amid allegations that it contained high levels of lead.
Nestle India's Chairman and Managing Director Suresh Narayanan said that Maggi noodles has already regained leadership with over 50% market share within 5 months of relaunch. He said that Nestle India is gearing up for volume growth with renewed focus and commitment on consumer relevant innovation and renovation. Narayanan said that the management is working on increasing penetration for all product categories of the company including milk & nutrition, chocolate & confectionary and coffee & beverages. Narayanan said that the company's Q1 March 2016 results show further improvement in sequential performance, both in sales and profit margins.
Bank of Baroda is scheduled to announce its Q4 March 2016 results today, 13 May 2016.
The passage of the Insolvency and Bankruptcy Code, 2016 in Rajya Sabha and gains in European stocks triggered upmove on the domestic bourses yeserday, 12 May 2016. The barometer index, the S&P BSE Sensex, gained 193.20 points or 0.75% to settle at 25,790.22.
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