Key benchmark indices provisionally settled almost unchanged after a rangebound trade. The barometer index, the S&P BSE Sensex was up 2.81 points or 0.01% at 30,250.98, as per the provisional closing data. The Nifty 50 index was up 4.85 points or 0.04% at 9,422.40, as per the provisional closing data. Indices gave up gains after hitting record highs in intraday trade.
Most auto stocks gained. HCL Technologies gained after reporting good Q4 results. Hero MotoCorp rose after announcing Q4 results.
After opening with small gains, key indices had extended gains and hit fresh record highs in mid-morning trade tracking firm Asian stocks. Indices slipped into the red in late trade after trimming gains in afternoon trade sighting lower European cues.
The BSE Mid-Cap index rose 0.05%, outperforming the Sensex. The BSE Small-Cap index fell 0.05%, underperforming the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,581 shares declined and 1,246 shares advanced. A total of 165 shares were unchanged.
The total turnover on BSE amounted to Rs 4011.58 crore, higher than turnover of Rs 3625.49 crore registered during the previous trading session.
HCL Technologies gained 0.08% after the company's consolidated net income rose 12.3% to Rs 2325 crore on 2% increase in revenue to Rs 12053 crore in Q4 March 2017 over Q3 December 2016. The result was announced during market hours today, 11 May 2017.
In its guidance, HCL Technologies said that in the financial year ending March 2018 (FY18), its revenues are expected to grow between 10.5% to 12.5% in constant currency. The above constant currency guidance translates to 9.9% to 11.9% in USD terms based on 31 March 2017 rates.
Operating margin (EBIT) in FY 2018 is expected in range from 19.5% to 20.5%. The operating margin guidance assumes USD-INR currency rate of $1=Rs 65.50 and other currencies at FY 2017 average exchange rates.
Most auto stocks gained. Ashok Leyland (up 1.35%), Maruti Suzuki India (up 0.14%), Eicher Motors (up 5.88%), Bajaj Auto (up 3.12%), and TVS Motor Company (up 0.19%) gained. Tata Motors declined 1.05%.
Mahindra & Mahindra (M&M) declined 0.37%. The company said that India Ratings and Research (Ind-Ra) has affirmed the company's long-term issuer rating at IND AAA. The outlook is stable. Ind-Ra continues to take a consolidated view of M&M after excluding its financial services subsidiary Mahindra & Mahindra Financial Services. The announcement was made after market hours yesterday, 10 May 2017.
Hero MotoCorp rose 4.23%. The company's net profit fell 13.9% to Rs 717.75 crore on 7.9% decline in net sales to Rs 6915.20 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 10 May 2017.
Hero MotoCorp said it took a proactive approach towards the launch of BS IV-compliant vehicles, and liquidated large BS III inventory, leading up to 29 March 2017. In the last two days of the month, the company took some tactical steps to assist its dealers and incentivise the customers with an objective to liquidate the remaining BS Ill stocks, resulting in a one-time impact to the margins of the fourth quarter.
EBITDA (earnings before interest, taxes, depreciation and amortization) margin stood at 12.79% in Q4 March 2017, lower than 14.66% in Q4 March 2016.
Hero MotoCorp's retail sales have been outpacing wholesale numbers, as a result of which the company has now been able to maintain healthy dealer inventory. Meanwhile, input costs have been on an upward trend. To partially offset the commodity costs, Hero MotoCorp raised prices ranging from Rs 500 to Rs 2200 on some of the models, with effect from 1 May 2017.
JK Agri Genetics was locked at 20% upper circuit at Rs 730.65 on BSE after net profit spurted 910.5% to Rs 3.84 crore on 44.5% increase in net sales to Rs 47.60 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 10 May 2017.
Indoco Remedies declined 2.26%. The company said it received approval from the regulatory body, UK Medicines and Healthcare products Regulatory Agency (UK-MHRA), for its solid dosages manufacturing facility in Goa (Plant I). The approval is the outcome of the inspection conducted in December 2016. The announcement was made during market hours today, 11 May 2017.
Overseas, European stocks were marginally lower. The European Union said Europe's economy is strengthening, raising this year's growth forecast, despite geopolitical risks that could undermine its fifth year of recovery. Gross domestic product in the 28-country EU will grow by 1.9% in both 2017 and 2018, the bloc estimated in its latest economic outlook, up from its February forecast of 1.8%.
The European Commission raised its UK growth forecasts for the second time in six months, saying it doesn't now expect a slowdown this year in response to the country's June 2016 decision to leave the European Union. The commission, which is the EU's executive arm, said in its latest set of quarterly economic forecasts that it expected the UK economy to expand at an unchanged 1.8% rate this year, while slowing sharply to 1.3% in 2018.
Most Asian stocks advanced as global equities remained at record levels and a rebound in oil boosted energy producers.
Japan's current account balance posted a stronger-than-expected surplus in March on solid income from overseas investments, maintaining a run of uninterrupted monthly surpluses that has continued for almost three years. The surplus of 2.91 trillion yen ($25.45 billion) marked the 33rd straight month in the black, finance ministry data showed.
Most US stocks finished only slightly higher to hit record highs yesterday, 10 May 2017 as a quiet week of trading continued.
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