Key indices continued to trade with small gains in mid-morning trade after what was a listless session of trade so far. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 36.38 points or 0.12% at 29,962.53. The Nifty 50 index rose 12.35 points or 0.13% at 9,326.40.
Indian stocks tracked quiet trade in Asian stocks and tiny gains in US stocks overnight. Cement and telecom stocks declined.
The BSE Mid-Cap index rose 0.3%. The BSE Small-Cap index gained 0.53%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,387 shares rose and 1,017 shares fell. A total of 123 shares were unchanged.
IndusInd Bank dropped 0.16%. IndusInd Bank Mynd Solutions' M1 Exchange announced its first successful online invoice discounting transaction. M1 Exchange had gone live for the customers (MSME sellers, corporate buyers and financiers) from 7 April 2017. The transaction worth Rs 91 lakhs was discounted on the Exchange by IndusInd Bank for a supplier of a large electronics company.
The entire process from hosting the invoice by the vendor (MSME) on M1 Exchange platform, its acceptance by the corporate buyer, bidding and financing by the bank has been completed in 48 hours. It marks the beginning of easy inflow of working capital to MSME vendors in the country, further enhancing the business engagement between the corporates and the vendors. The announcement was made during market hours today, 9 May 2017.
Cement stocks dropped. ACC (down 0.23%), Shree Cement (down 0.04%), Ambuja Cements (down 1.15%) dropped. UltraTech Cement gained 0.64%.
Grasim Industries declined 0.55%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Telecom stocks declined. Reliance Communications (RCom) (down 0.92%), Tata Teleservices (Maharashtra) (down 1.35%) and Idea Cellular (down 1.71%) declined.
Bharti Airtel declined 0.74% ahead of its Q4 results today, 9 May 2017.
Bharti Infratel gained 1.44%. The company's consolidated net profit fell 16.95% to Rs 596.60 crore on 13.20% increase in net sales to Rs 1605.30 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 9 May 2017. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Shares of S Chand and Company were trading at Rs 674.40 on BSE, a small premium of 0.66% over the initial public offer price of Rs 670 per share. The stock debuted at Rs 707, a premium of 5.52% to the initial public offer (IPO) price. So far the stock hit a high of Rs 707 and low of Rs 658. On BSE, so far 10.24 lakh shares were traded on the counter.
S Chand and Company is a leading Indian education content company. The company delivers content, solutions and services across the education lifecycle through its K-12, higher education and early learning segments.
Precision Wires India gained 3.98% after net profit rose 39.72% to Rs 6.93 crore on 18.3% rise in net sales to Rs 247.94 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 8 May 2017.
NOCIL rose 2.08% after net profit rose 13% to Rs 25.46 crore on 7.4% increase in net sales to Rs 190.81 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 8 May 2017.
Tata Sponge Iron rose 0.87% after the company received environment clearance from Ministry of Environment, Forest & Climate Change, Government of India, for enhancement of DRI production by 35,000 TPA i.e. from 3.9 lakhs tonnes per annum (TPA) to 4,25,000 TPA in the existing facility located at Bileipada, district Keonjhat, Odisha. The announcement was made after market hours yesterday, 8 May 2017.
Meanwhile, Finance Minister Arun Jaitley reportedly said yesterday, 8 May 2017 that the Goods and Services Tax (GST) is on schedule for implementation from 1 July 2017 and will not lead to any significant increase in prices of goods although cost of some services may see a marginal hike.
Overseas, Asian stocks traded mixed after strong gains a day earlier. Markets in Korea are closed as voters there elect a new president after former President Park Geun-hye was removed from office over a corruption scandal.
Meanwhile, the International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5% from its previous October forecast of 5.4%, said loose monetary and fiscal policies across most of the region would underpin domestic demand. India's growth is expected to rebound to 7.2% in the FY 2018 and 7.7% in FY 2019 after disruptions caused by demonetisation, the IMF said.
In US, the S&P 500, and Nasdaq Composite indices notched records yesterday, 8 May 2017, but indexes finished little-changed as materials shares capped a climb in the energy sector. Trading activity was listless after Emmanuel Macron's closely watched, but expected, presidential election victory in France on Sunday, 7 May 2017.
In the latest commentary from Federal Reserve officials, Cleveland Federal Reserve President Loretta Mester said the Fed must be very vigilant against falling behind on needed interest-rate hikes, adding that we could risk a recession if the central bank delayed too long on normalizing rates. Separately, St. Louis Fed President James Bullard said the Fed's benchmark federal-funds rate is close to where a famous mathematical rule recommends it should be.
A measure of fear on Wall Street ended at its lowest level since 1993 yesterday, 8 May 2017, according to FactSet data. The CBOE Volatility Index VIX, -7.57% or VIX, closed at 9.77, off 7.6%, and marking its lowest level since 27 December1993.
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