Key benchmark indices hovered in a small range in negative zone in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 49.91 points or 0.14% at 35,485.88. The Nifty 50 index was down 25.60 points or 0.24% at 10,780.90. FMCG stocks saw mixed trend. Investors were cautious ahead of Karnataka Assembly poll results tomorrow, 15 May 2018.
Domestic stocks drifted higher in early trade on positive Asian stocks. Early sentiment was also boosted after exit polls reportedly showed that the Bharatiya Janata Party could emerge as the single largest party in Karnataka. Key benchmark indices extended gains and hit fresh intraday high in morning trade. Stocks trimmed gains in mid-morning trade. Indices hit fresh intraday low in afternoon trade.
The S&P BSE Mid-Cap index was off 0.85%. The S&P BSE Small-Cap index was off 0.83%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 787 shares rose and 1,798 shares fell. A total of 145 shares were unchanged.
FMCG stocks saw mixed trend. Hindustan Unilever shed 0.18%. The company will declare its audited financial results for the financial year ended 31 March 2018 today, 14 May 2018.
Procter & Gamble Hygiene and Health Care (down 3.26%), Bajaj Corp (down 1.18%), Britannia Industries (down 0.19%), GlaxoSmithkline Consumer Healthcare (down 0.24%) and Godrej Consumer Products (down 0.01%) fell.
Jyothy Laboratories (up 2.9%), Colgate-Palmolive (India) (up 0.41%), Dabur India (up 1.06%), Marico (up 0.48%) and Nestle India (up 0.55%) rose
Tata Global Beverages lost 10.72%. Consolidated net profit rose 39.98% to Rs 71.56 crore on 0.38% rise in net sales to Rs 1688.40 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours on Friday, 11 May 2018.
For the quarter, after excluding the impact of sale and restructuring of the group's businesses, revenue from operations increased by 4% in constant currency on a comparable basis. The group net profit for the quarter grew by 40% as compared to the corresponding quarter of the previous year due to lower level of exceptional expenditure.
Shares of state-run oil marketing companies reversed intraday gains triggered after announcing hike in fuel prices.
HPCL (down 0.06%) and Indian Oil Corporation (down 0.27%) fell. BPCL (up 0.81%) rose.
Petrol price was hiked by Rs 0.17 per litre and diesel by Rs 0.21 as public sector oil marketing companies (PSU OMCs) passed on the spike witnessed in international crude oil prices on consumers. Global crude oil prices have risen over the past few months, to trade near 2014 highs.
Higher crude oil prices increases under-recoveries of public-sector undertaking oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index, stood at 3.18% (provisional) for the month of April 2018 (over April 2017) as compared to 2.47% (provisional) for the previous month and 3.85% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.69% compared to a build up rate of 0.00% in the corresponding period of the previous year. The data was released by the government during market hours today, 14 May 2018.
The government will announce consumer price inflation (CPI) for April 2018 after market hours today, 14 May 2018. CPI stood at 4.28% in March 2018.
India's industrial production (base year 2011-12=100) moderated to five-month low of 4.4% in March 2018 over March 2017, after healthy growth in the range of 7% to 8.5% for last four straight months. The deceleration in industrial production growth has moderated mainly driven by moderation in the manufacturing sector's production growth to 4.4% in March 2018. However, the growth of electricity generation output accelerated to 5.9%, while the mining output rebounded 2.8% in March 2018 after 0.4% decline in February 2018. The data was announced by government after market hours on Friday, 11 May 2018.
On the political front, exit polls reportedly showed that Karnataka could return a split verdict with the Bharatiya Janata Party as the single largest party. The Karnataka Assembly elections in a single-phase polling were held on Saturday, 12 May 2018. Polling was held in 222 constituencies of the 224-member assembly. Results will be announced tomorrow, 15 May 2018. Karnataka is one of only three states to be ruled by the Congress.
Overseas, European stocks were trading lower as investors focused on Italian politics, trade relations between the US and China, and a dip in oil prices.
Asian stocks were trading higher on signs the United States and China were toning down their trade war rhetoric. US stocks edged higher on Friday, 11 May 2018 amid growing conviction that inflation will remain tame and as trade tensions eased.
Meanwhile, US reportedly plans to reintroduce sanctions against Iran have stoked anxiety in the Middle East. Iran pumps about 4% of the world's oil, and the latest development has sent oil prices near multi-year highs. The US threatened on Sunday to impose sanctions on European companies that do business with Iran, as the remaining participants in the Iran nuclear accord stiffened their resolve to keep that agreement operational.
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