Key benchmark indices were trading with small gains in mid-morning trade after a private survey showed today, 1 September 2016 that India's manufacturing activity registered a solid improvement in August. At 11:20 IST, the barometer index, the S&P BSE Sensex was up 47.75 points or 0.17% at 28,499.92. The Nifty 50 index was currently up 12.55 points or 0.14% at 8,798.75.
The Sensex rose 90.55 points or 0.31% at the day's high of 28,542.72 in early trade, its highest level since 23 July 2015. The barometer index slipped 35.63 points or 0.12% at the day's low of 28,416.54 in early trade. The Nifty rose 25.55 points or 0.29% at the day's high of 8,811.75 in early trade. The index shed 10.10 points or 0.11% at the day's low of 8,776.10 in early trade.
In overseas stock markets, Asian stocks were mixed as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.
US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,172 shares rose and 1,121 shares declined. A total of 148 shares were unchanged. The BSE Mid-Cap index was currently up 0.08%. The BSE Small-Cap index was currently up 0.12%. Both these indices underperformed the Sensex.
Telecom stocks were mixed. Bharti Airtel (down 0.17%), and Idea Cellular (down 0.16%) declined. Tata Teleservices (Maharashtra) (up 0.16%) and Reliance Communications (RCom) (up 1.86%) gained.
More From This Section
Shares of Bharti Infratel gained 1.37%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Auto stocks gained on hopes that Reserve Bank of India may cut policy rates in next monetary policy meeting on 4 October 2016 to prop up growth after the recent data showed gross domestic product growth slowed in Q1 June 2016. Mahindra & Mahindra (M&M) (up 1.04%), Eicher Motors (up 0.6%), Bajaj Auto (up 0.72%), Hero MotoCorp (up 0.48%), Tata Motors (up 0.97%) and TVS Motor Company (up 0.05%) gained. Ashok Leyland dropped 0.29%. Lower interest rates may help revive demand for vehicles. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Maruti Suzuki India rose 0.37% after the company announced good sales in August. The company's total sales rose 12.2% to 1.32 lakh units in August 2016 over August 2015. The domestic sales rose 12.3% to 1.19 lakh units in August 2016 over August 2015. Exports rose 10.8% to 12,280 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.
Meanwhile, PSU OMCs hiked petrol prices by a steep Rs 3.38 per litre and diesel by Rs 2.67 a litre in Delhi effective 1 September 2016 (including state levies), with corresponding price revision in other states. After the latest revision petrol costs Rs 63.47 a litre in Delhi up from Rs 60.09 a litre and a litre of diesel costs Rs 52.94 a litre as against Rs 50.27 a litre.
On macro front, private survey showed today, 1 September 2016 that the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - showed a solid improvement in the health of the sector in August, climbing from 51.8 in July to a 13-month high of 52.6. Indian manufacturers enjoyed a solid improvement in operating conditions during August. With demand from the domestic and external markets picking up, companies raised output accordingly. Firms recorded an easing in cost inflation during the month, which in turn resulted in a softer overall increase in factory gate charges.
Meanwhile, India's Gross Domestic Product (GDP) growth slowed down to 7.1% in Q1 June 2016, as against 7.9% in Q4 March 2016 and 7.5% increase in Q1 June 2015.
Another data showed the index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015 compared to 5.2% growth in June 2016 and 1.3% growth in July 2015. A cumulative growth stood at 4.9% for April to July 2016 period. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 38% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.
Powered by Capital Market - Live News