Key indices held firm in early afternoon trade with sentiments buoyed after chief of the India Meteorological Department (IMD) reportedly commenting that India may likely receive higher monsoon rainfall than previously forecast. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 234.07 points or 0.78% at 30,167.32. The Nifty 50 index rose 63.45 points or 0.68% at 9,380.30. The Sensex had hit record high above psychological 30,000-mark in mid-morning trade after regaining that mark in early trade. The Nifty had also scaled record high.
Indices had extended gains and hit record highs in mid-morning trade after opening higher tracking firm Asian stocks.
Realty stocks declined on profit booking after the recent strong gains. Fertiliser shares rose on reports the monsoon this year could be normal and bring 100% rainfall instead of 96% as predicted earlier.
The BSE Mid-Cap index rose 0.79%. The BSE Small-Cap index gained 0.8%. Both these indices outperformed the Sensex.
The breadth, indicating health of the market was strong. On BSE, 1,542 shares rose and 1,032 shares fell. A total of 151 shares were unchanged.
Fertiliser shares rose on reports suggesting the monsoon this year could be normal and bring 100% rainfall instead of 96% as predicted earlier. Chambal Fertilisers & Chemicals (up 10.05%), Rashtriya Chemicals and Fertilisers (up 7.72%), Fertilisers & Chemicals Travancore (up 5.41%), National Fertilizers (up 2.28%), Coromandel International (up 2.14%), Tata Chemicals (up 1.56%), Gujarat State Fertilizers & Chemicals (up 1.71%) and Deepak Fertilisers & Petrochemicals Corporation (up 0.67%), edged higher.
Jubilant Life Sciences rose 1.66% after National Green Tribunal (NGT) passed an order allowing the company to restart manufacturing operations in all its units at Gajraula (except the distillery unit) in compliance with the directions issued by the NGT in this regard. The company said it has complied with the directions issued by NGT and has, with effect from yesterday, 9 May 2017, restarted its manufacturing operations in Gajraula (except the distillery unit). The revenue impact of the distillery operations in financial year ended March (FY 2017) is not significant. The announcement was made after market hours yesterday, 9 May 2017.
Realty stocks declined on profit booking after the recent strong gains. Sobha (down 0.84%), Indiabulls Real Estate (down 0.71%), Unitech (down 0.01%), DLF (down 0.68%), and D B Realty (down 0.6%) edged lower.
Peninsula Land slumped 9.66% after the company reported net loss of Rs 1.15 crore in Q4 March 2017, compared with net profit of Rs 0.26 crore in Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017. Total income spurted 200% to Rs 2.55 crore in Q4 March 2017 over Q4 March 2016.
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.
However, he reportedly denied the possibility that monsoon would be above normal this year. Anything between 96% and 104% of the long period average (LPA) is considered as normal. Anything under 96% is considered as below normal and 104-110% of the LPA as above normal.
Overseas, Asian stocks were mixed amid local drivers and 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.
In Europe, Germany posted a record current-account surplus in March. Germany's current-account surplus -- the gap between what it earns from and what it spends in overseas markets -- came in at EUR30.2 billion ($33 billion) in March, the Destatis statistics office said.
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