Local stocks logged small gains in a volatile session of trade, reversing a five-day losing trend. The barometer index, the S&P BSE Sensex, rose 35.11 points or 0.10% to settle at 34,651.24. The Nifty 50 index rose 20 points or 0.19% to settle at 10,536.70. Global cues were mixed.
Realty stocks gained. Auto stocks logged strong gains on reports China will steeply cut import tariffs for automobiles and car parts. Shares of SBI and Dr Reddy's Laboratories surged after declaring Q4 result.
After opening lower, the market bounced and hit fresh intraday high in morning trade. Indices were unable to sustain at higher levels and re-entered negative terrain in mid-morning trade. Indices turned range bound near flat line in early afternoon trade. Indices firmed up in afternoon trade and managed to settle with small gains.
The barometer index, the S&P BSE Sensex, rose 35.11 points or 0.10% to settle at 34,651.24. The index hit high of 34,754.60 and low of 34,550.22 during the day.
The Nifty 50 index rose 20 points or 0.19% to settle at 10,536.70. The index hit high of 10,558.60 and low of 10,490.55 during the day.
Among secondary barometers, the BSE Mid-Cap index and the BSE Small-Cap index rose by 0.65% each. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1450 shares rose and 1177 shares fell. A total of 142 shares were unchanged.
Coal India (up 3.23%), Sun Pharmaceutical Industries (up 2.07%) and Infosys (up 0.93%) were the major Sensex gainers.
TCS (down 1.4%), Asian Paints (down 1.27%), Axis Bank (down 1.27%), IndusInd Bank (down 1.19%) and ITC (down 1.17%) were the major Sensex losers.
Dr Reddy's Laboratories rose 6.3%. The company's consolidated net profit fell 3% to Rs 302.20 crore on 1% fall in revenue to Rs 3534.90 crore in Q4 March 2018 over Q4 March 2017. The result was announced during trading hours today, 22 May 2018.
Dr Reddy's Laboratories CEO and Co-chairman GV Prasad said that the company concluded a challenging year with a relatively muted fourth quarter performance. This was mainly on account of continuing headwinds in the US market and a temporary drop in the sales in Russia, attributable to a shift in the channel purchasing pattern.
Looking ahead, the company will continue to work diligently on resolving pending regulatory issues and will also focus on accelerating new products to market and improving approval process, he said.
Dr Reddy's Laboratories said that the board of directors of the company has recommended a final dividend of Rs 20 per share for the financial year 2017-18.
State Bank of India (SBI) gained 3.69%. The bank reported net loss of Rs 7718.17 crore in Q4 March 2018 compared with net profit of Rs 2814.82 crore in Q4 March 2017. Total income rose 18.57% to Rs 68436.06 crore in Q4 March 2018 over Q4 March 2017. The result was announced during trading hours today, 22 May 2018.
Auto stocks logged strong gains on reports China will steeply cut import tariffs for automobiles and car parts. Ashok Leyland (up 5.14%), Maruti Suzuki India (up 1.56%), Tata Motors (up 3.78%), Mahindra & Mahindra (M&M) (up 0.4%), Eicher Motors (up 1.61%), Escorts (up 0.91%), Bajaj Auto (up 3.86%) and Hero MotoCorp (up 0.41%) gained. TVS Motor Company (down 0.11%) fell.
China will reportedly cut the import duty on passenger cars to 15% in a move that gives a boost to makers of luxury autos. The State Council, China's cabinet, has decided to reduce the levy from the current 25% that has been in place for more than a decade.
Larsen & Toubro gained 0.45% after the company said its construction arm has won orders valued Rs 4033 crore. The announcement was made during market hours today, 22 May 2018.
L&T said that the Buildings & Factories business of L&T Construction has bagged orders worth Rs 4033 crore. Buildings & Factories business has won order from a government client for the design & construction of 1,125 units of residential towers of G+3 floors under PMAY Scheme at Visakhapatnam, Prakasam, Guntur, and Krishna Districts in Andhra Pradesh, to be completed within stringent timelines.
Another order has been secured from a leading cement manufacturer for the construction of cement plants in Odisha and Andhra Pradesh on the design and build model. The business has bagged another turnkey order from a government client in Patna (Bihar) to establish a cancer institute along with the supply, installation and commissioning of medical equipment.
HPCL shed 0.35% ahead of its Q4 March 2018 result today, 22 May 2018.
Realty stocks gained. Indiabulls Real Estate (up 3.48%), Housing Development and Infrastructure (up 4.18%), D B Realty (up 1.67%), Peninsula Land (up 2.51%), Unitech (up 2.94%), Godrej Properties (up 2.3%) gained. Prestige Estates Projects (down 1.11%), Sobha (down 2.94%) and Oberoi Realty (down 1.17%) fell.
DLF rose 2.5% after consolidated net profit rose 70.52% to Rs 243.26 crore on 21.63% fall in total income to Rs 2041.92 crore in Q4 March 2018 over Q4 March 2017. The announcement was made after market hours yesterday, 21 May 2018.
Just Dial gained 5.66% after net profit rose 53.69% to Rs 38.96 crore on 11.71% rise in total income to Rs 217.09 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 21 May 2018.
Action Construction Equipment gained 4.43% after net profit jumped 921.9% to Rs 21.46 crore on 59.24% rise in total income to Rs 369.91 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 21 May 2018.
On the political front, Janata Dal (Secular), or JD(S), leader H D Kumaraswamy will take oath as Chief Minister of Karnataka on Wednesday, 23 May 2018 at 16:30 IST on the steps of the Vidhana Soudha, the state secretariat. Governor Vajubhai Vala will administer the oath of office and secrecy to Kumaraswamy.
The 12 May 2018 Karnataka assembly polls threw up a hung verdict with BJP emerging as the single largest party with 104 seats. The Congress was next with 78 and the JD(S) followed with 37. The BSP has one MLA and two seats went to Independents.
Overseas, shares in Europe and Asia were mixed. The US market jumped overnight as investors applauded easing trade animosities between the US and China.
US Treasury Secretary Steven Mnuchin reportedly said that bilateral trade talks with China had made very meaningful progress and that it was now up to both parties to implement what had been discussed. Mnuchin said over the weekend that the Trump administration would delay implementation of tariffs on Chinese goods and put the trade war on hold while working out details of a deal between the countries.
A focus for global markets this week is Wednesday's release of minutes from the Federal Reserve's latest monetary policy meeting. Investors will be watching the minutes for clues about the pace of the current tightening cycle.
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