Volatility continued as the Sensex regained positive zone while the Nifty cut losses in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 75.15 points or 0.21% at 36,623.56. The Nifty 50 index was down 1.60 points or 0.01% at 11,021.60. IT stocks saw mixed trend.
Today's trading session saw high intraday volatility. Domestic stocks nudged higher in early trade on positive Asian stocks. The Sensex trimmed gains soon after scaling a record high while the Nifty sank in negative zone in morning trade.
The S&P BSE Mid-Cap index was down 0.79%. The S&P BSE Small-Cap index was down 1.13%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 628 shares rose and 1541 shares fell. A total of 99 shares were unchanged.
IT stocks saw mixed trend. Wipro (up 1.97%), TCS (up 0.79%), Tech Mahindra (up 0.03%) and Mphasis (up 3.54%) rose. MindTree (down 0.53%), Hexaware Technologies (down 0.34%) and Oracle Financial Services Software (down 0.13%) fell.
Infosys rose 1.73% ahead of its Q1 June 2018 result today, 13 July 2018.
HCL Technologies fell 1.77% to Rs 987.55 on profit booking after the company said its board approved buyback of shares. The board approved buyback of up to 3.64 crore shares, or 2.61% stake, worth Rs 4000 crore at Rs 1,100 each. The announcement was made after market hours yesterday, 12 July 2018.
Ahead of the announcement, the stock rallied 8.63% in six trading sessions to Rs 1,005.30 on 12 July 2018, from its close of Rs 925.40 on 4 July 2018.
Cyient dropped 4.39% after consolidated net profit fell 32.67% to Rs 81.60 crore on 1.71% increase in net sales to Rs 1080 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours yesterday, 12 July 2018.
Hindustan Oil Exploration Company (HOEC) rose 2.52%. HOEC announced the successful completion of a two well re-entry and side track drilling campaign of Mercury and Earth wells which commenced in April 2018. Based on the test results of these wells there is an increase in gas production by about 10 mmscfd from the current level of 2 mmscfd. PY-1 block is 100% HOEC owned offshore field with the facilities to handle this production without any additional operating costs. The announcement was made after market hours yesterday, 12 July 2018.
On the macro front, government data released after market hours yesterday, 12 July 2018 showed that India's factory output growth slowed to a seven-month low in May while retail inflation quickened to a five-month high in June.
India's industrial production (base year 2011-12=100) grew at 3.2% in May 2018 over May 2017, while showing moderation in growth from a revised 4.8% increase in the previous month. The manufacturing sector's production growth decelerated to 2.8%, causing dip in overall industrial production growth in May 2018. On the other hand, the mining output has improved at higher pace of 5.7% and electricity generation output growth also accelerated 4.2% in May 2018.
The all-India general CPI inflation increased 5% in June 2018 (new base 2012=100), compared with 4.87% in May 2018. The corresponding provisional inflation rate for rural area was 5% and urban area 4.85% in June 2018 as against 4.88% and 4.72% in May 2018. The core CPI inflation increased to 6.35% in June 2018 compared with 6.12% in May 2018.
Overseas, most Asian stocks rose as China refrained from detailing retaliation plans against threatened US tariff increases. The US and China reportedly signaled they were open to resuming negotiations over trade after days of exchanging retaliatory threats.
China's trade surplus narrowed to 901.32 billion yuan ($135.4 billion) in the first half of the year, down 26.7% from the same period a year earlier, data showed Friday. In January-June period, China's exports rose 4.9% from a year ago in yuan terms, and imports expanded 11.5% in yuan terms.
US stocks closed solidly higher yesterday, 12 July 2018 with the Nasdaq Composite Index ending at a record on the back of a rally in internet and technology giants, which helped to overshadow ongoing uncertainty over trade relations between the US and China.
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