Key barometer indices came off day's high in mid-morning trade. The sentiment was positive after India's Manufacturing PMI rose to a 8 year high indicating a turnaround in economy.
At 11:19 IST, the S&P BSE Sensex, was up 63.9 points or 0.16% at 39,799.43. The Nifty 50 index was up 29.8 points or 0.26% at 11,691.65.
In broader market, the S&P BSE Mid-Cap index significantly outperformed and traded 0.85% higher. While the S&P BSE Small-Cap index was up 0.14%.
The market breadth was negative. On the BSE, 888 shares rose and 1117 shares fell. A total of 124 shares were unchanged. In Nifty 50 index, 28 stocks advanced while 22 stocks declined.
Economy:
The headline seasonally adjusted IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years. The consumer goods sub-sector remained the brightest spot, although growth was sustained in intermediate goods and capital goods moved back into expansion.
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"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business. Companies also benefited from subdued cost pressures, which enabled them to restrict increases in their fees to some extent. There was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," said Pollyanna de Lima, Principal Economist at IHS Markit.
Stocks in Spotlight:
Shares of Coal India rose 2.48%. The coal major on Saturday said that its total coal production in January 2020 stood at 63.11 million tonnes as compared to 57.21 million tonnes in January 2019, recording a rise of 10.3%. Coal offtake rose 6.9% to 56.05 million tonnes in January 2020 as against 52.44 million in January 2019.
Ashok Leyland declined 1.49% after the commercial vehicles manufacturer announced dismal January 2020 sales. Total vehicle sales fell 40% in January 2020 to 11,850 units from 19,741 units in January 2019. The total sales however, are up 6.11% from 11,168 units in December 2019. The company's domestic sales declined 41% to 10,850 units in January 2020 from 18,533 units in January 2019.
MOIL was up 0.61% after the PSU miner announced that it has hiked prices of manganese. Prices of manganese of all grades having Mn-44% and above are increased by about 2.5 % and all the other Ferro grades of manganese having manganese below 44% have been increased by about 7.5 % on the existing prices prevailing since 01.01.2020. prices of SMGR grades (Mn-30% & Mn-25%) and all grades of Fines (except Balaghat Fines) have been increased by about 7.5 % on the existing prices prevailing since 01.01.2020.
Shares of NCC were down 1.57% at Rs 50.2. The construction company received three new orders totaling to Rs 530 crore (exclusive of GST) in January. All the three orders pertain to building division.
Global Markets:
Overseas, Asian stocks were trading lower on Monday following the sell-off on Wall Street on Friday amid concerns about the rapid spread of the coronavirus outbreak and its impact on the global economy.
The Shanghai Composite and the Shenzhen Component Index plummeted more than 8% on their first day of trading after an extended Lunar New Year holiday. The markets were closed since 24 January 2020. China's health officials said the death toll related to the coronavirus has risen to 361, while there are 17,205 confirmed cases.
The People's Bank of China (PBOC) said Sunday it would launch a 1.2 trillion yuan ($173 bln) reverse repurchase operation on Monday to maintain "reasonable and abundant liquidity" in the banking system, as well as a stable currency market, during the epidemic.
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