Key benchmark indices held positive zone in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was up 132.82 points or 0.44% at 30,320.97. The Nifty 50 index was up 40.70 points or 0.43% at 9,441.60. Mostly higher Asian stocks boosted sentiment on the domestic bourses. Gains were led by ITC, ICICI Bank and HDFC. Shares from cement and realty sectors gained.
Trading for the week began on an upbeat note as the market reacted positively to macroeconomic data released with changes in new base-year series for wholesale price index (WPI) inflation and index of industrial production (IIP). The key benchmark indices continued to trade with strength in morning trade.
The BSE Mid-Cap index was up 1.18%. The BSE Small-Cap index was up 0.82%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,472 shares rose and 938 shares fell. A total of 133 shares were unchanged.
Overseas, most Asian stocks were trading higher as investors continued to shake off reasons to worry. On the macro front, official data released today, 15 May 2017 showed Chinese industrial output and retail sales rose less than expected in April, adding to concerns over the strength of the world's second-largest economy. Over the weekend, North Korea tested a new type of missile, and a global cyberattack hit computers in business, government and health care.
Meanwhile, a G7 communique issued on Saturday, 13 May 2017 said the group would use all policy tools - fiscal, structural and monetary - to boost economic growth. Several officials raised concerns about risks to global growth from the Trump administration's stance on trade and tax policy.
US markets ended narrowly mixed on Friday, 12 May 2017 as investors digested weak retail sales and inflation data as well as disappointing earnings updates from the likes of Nordstrom and J C Penney. A gauge of US consumer sentiment unexpectedly increased in May, offering some respite.
Back home, cement stocks gained. Ambuja Cements (up 0.45%), ACC (up 1.24%), UltraTech Cement (up 1.77%) and Shree Cement (up 2.17%) gained.
Grasim Industries was up 1.71%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
J K gained Cement 4.13% after net profit rose 30.42% to Rs 91.37 crore on 7.74% rise in net sales to Rs 1018.86 crore in Q4 March 2017 over Q4 March 2016. J K Cement's net profit rose 151.21% to Rs 259.58 crore on 5.18% rise in net sales to Rs 3703.55 crore in the year ended March 2017 over the year ended March 2016. The result was announced on Saturday, 13 May 2017.
Meanwhile, the company said that its board decided to raise upto Rs 500 crore by issuing secured/irredeemable non-convertible debentures in one of more series/tranches on private placement basis at an interest rate that will be determined by the prevailing money market conditions at the time of borrowing. The board also decided to expand the wall putty production capacity from existing 2 lakh MT per annum to 4 lakh MT per annum at J K White, Katni.
Further, the board took note of increase in clinker production capacity by 3.30 lakh tons per annum in Rajasthan grey cement plants by cooler modification and de-bottlenecking/up-gradations with the total cost of approximately Rs 50 crore. With this the overall grey cement clinker capacity of Rajasthan plants stands increase to 54.45 lakh tons per annum.
Realty stocks gained. DLF (up 1.11%), Anant Raj Industries (up 0.9%), Indiabulls Real Estate (up 1.31%), Housing Development and Infrastructure (up 1.52%), Sobha (up 0.8%), Godrej Properties (up 1.24%), Prestige Estates Projects (up 0.14%), Oberoi Realty (up 2.92%) gained. D B Realty (down 0.51%), Unitech (down 0.71%), and Parsvnath Developers (down 1.28%) fell.
Huhtamaki PPL fell 3.36% after net profit fell 52.6% to Rs 16.32 crore on 2.8% decline in net sales to Rs 505.61 crore in Q1 March 2017 over Q1 March 2016. The result was announced after market hours on Friday, 12 May 2017.
On the macro front, the market reacted to macroeconomic data released by the government after market hours on Friday, 12 May 2017 with changes in new base-year series for Wholesale Price Index (WPI) inflation and Index of Industrial Production (IIP). The base year for WPI and IIP was revised to 2011-12.
Newly released WPI inflation was sharply lower to 3.9% in April from 5.3% in March. The new IIP series recorded a higher-than-expected growth of 2.7% in March compared to 1.9% in February. CPI (Consumer Price Index) inflation slipped to a record low of 2.99% in April compared to 3.89% in March.
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