Key benchmark indices erased intraday gains to sink in negative zone in early afternoon trade after latest data showed that wholesale prices hit a four-month high in April. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 34.59 points or 0.1% at 35,501.20. The Nifty 50 index was down 13.85 points or 0.13% at 10,792.65. Auto stocks saw mixed trend. Realty stocks dropped.
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.
The S&P BSE Mid-Cap index was off 0.69%. The S&P BSE Small-Cap index was off 0.62%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 831 shares rose and 1,506 shares fell. A total of 139 shares were unchanged.
Auto stocks saw mixed trend. Tata Motors (down 1.25%), Maruti Suzuki India (down 0.11%), Mahindra & Mahindra (M&M) (down 1.01%), Eicher Motors (down 1.17%) and Ashok Leyland (down 3.68%) declined.
Escorts (up 1.34%), Bajaj Auto (up 0.64%), Hero MotoCorp (up 0.82%) and TVS Motor Company (up 0.32%) rose.
Realty stocks dropped. DLF (down 2.04%), Indiabulls Real Estate (down 2.06%), Housing Development and Infrastructure (down 6.22%), D B Realty (down 4%), Unitech (down 2.96%), Sobha (down 0.91%), Godrej Properties (down 1.9%), Prestige Estates Projects (down 2.23%) declined. Oberoi Realty (up 4.43%) gained.
Tata Global Beverages lost 10.31%. 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.
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, 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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