Key benchmark indices hovered within a narrow range in positive terrain in morning trade as reports suggesting that the long-pending GST Bill is listed for consideration and passage in Rajya Sabha tomorrow, 3 August 2016 boosted sentiment. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 75.83 points or 0.27% at 28,078.95. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 16.50 points or 0.19% at 8,653.05. Data showing good growth in eight core industries in June also supported gains on the bourses.
The Sensex rose 172.10 points or 0.61% at the day's high of 28,175.22 in early trade. The barometer index fell 2.18 points or 0.01% at the day's low of 28,000.94 at the onset of trading session. The Nifty rose 50.65 points or 0.58% at the day's high of 8,687.20 in early trade. The Nifty declined 1.25 points or 0.01% at the day's low of 8,635.30 at the onset of trading session.
In overseas stock markets, most Asian stocks dropped, with stocks taking cues from a modestly lower day on Wall Street overnight as US crude oil prices slid. Meanwhile, Japan's Prime Minister Shinzo Abe's cabinet is reportedly likely to approve a 28 trillion yen ($273 billion) stimulus package today, 2 August 2016, though direct fiscal spending will total only about 7 trillion yen. US stocks lost momentum to finish mostly lower yesterday, 1 August 2016 as crude-oil futures returned to bear-market territory and weaker-than-expected manufacturing data raised doubts about the strength of the economy.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,064 shares rose and 875 shares declined. A total of 102 shares were unchanged. The BSE Mid-Cap index was currently up 0.45%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.19%, underperforming the Sensex.
Auto stocks gained. Mahindra & Mahindra (M&M) (up 1.08%), Eicher Motors (up 1%) and TVS Motor Company (up 0.88%) gained. Ashok Leyland declined 1.36%.
Tata Motors gained 0.51% after the company announced that Tata Motors passenger and commercial vehicle sales (including exports) rose 7% to 43,160 vehicles in July 2016 over July 2015. The company's domestic sales of Tata commercial and passenger vehicles rose 8% to 37,789 units in July 2016 over July 2015. The company's sales from exports rose 6% to 5,371 units in July 2016 over July 2015. The announcement was made after market hours yesterday, 1 August 2016.
Maruti Suzuki India (MSIL) rose 1.83% to Rs 4,959 after the company increased prices of select models ranging from Rs 1,500 to Rs 5,000 ex-showroom Delhi with effect from 1 August 2016. The announcement was made after market hours yesterday, 1 August 2016. The stock hit a high of Rs 5,000 so far during the day, which is also a record high for the counter. In case of newly launched models like Vitara Brezza and Baleno, the prices are being increased by upto Rs 20,000 and upto Rs 10,000 respectively, MSIL said. This price revision is based on factors like segment wise demand, forex movements and strategic objectives of the company, MSIL said in a statement.
MSIL reported 12.7% growth in total sales to 1.37 lakh units in July 2016 over July 2015. Domestic sales rose 13.9% to 1.25 lakh units in July 2016 over July 2015. This is the company's record monthly sales in the domestic market. The company's exports rose 0.3% to 11,338 units in July 2016 over July 2015. The announcement was made during market hours yesterday, 1 August 2016.
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Hero MotoCorp (HMCL) rose 1.31% after the company announced that its total two-wheelers sales rose 9.13% to 5.32 lakh units in July 2016 over July 2015. The announcement was made after market hours yesterday, 1 August 2016. In July 2016, HMCL commenced retail sales of Splendor iSmart 110 - the first motorcycle to have been completely designed and developed by its in-house R&D team at the state-of-the-art, world class Hero Centre of Innovation and Technology in Jaipur. The initial customer response to the new bike has been positive, the company said. With the above average monsoon and implementation of the seventh pay commission recommendations, the company remains cautiously optimistic about a positive turnaround in the industry in the second half of the year, HMCL said in a statement.
Bajaj Auto gained 1.08%. The company announced that total sales fell 0.12% to 3.29 lakh units in July 2016 over July 2015. Domestic sales rose 20% to 1.98 lakh units in July 2016 over July 2015. Exports fell 10% to 1.3 lakh units in July 2016 over July 2015. The announcement was made during market hours today, 2 August 2016.
Sun Pharmaceutical Industries gained 0.89% after the company announced that one of its subsidiaries has received final approval from United States Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for generic version of Glumetza, Metformin Hydrochloride extended release tablets 500 mg and 1000 mg. These Metformin Hydrochloride extended release tablets are therapeutic equivalents of Santarus Inc.'s Glumetza tablets. As per IMS MAT June 2016, these tablets have annual sales of approximately $1.2 billion in the US. The commercial launch of these tablets in the US is expected over the next few weeks. The announcement was made during market hours today, 2 August 2016.
Telecom stocks declined. Reliance Communications (RCom) (down 0.77%), Bharti Airtel (down 0.54%), and Idea Cellular (down 0.38%) declined. Tata Teleservices (Maharashtra) rose 0.45%.
Shares of Bharti Infratel rose 1.9%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
On macro front, the index of eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) increased 5.2% in June 2016 over June 2015, compared to 2.8% growth in May 2016 and 3.1% growth in June 2015. Its cumulative growth during the three months period from April to June 2016 was 5.4%. The data was announced after market hours yesterday, 1 August 2016.
Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the long-pending GST Bill is listed for consideration and passage in Rajya Sabha tomorrow, 3 August 2016 amidst strong indications that the most far-reaching taxation reform would be supported by Congress and all other major political parties. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.
The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.
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