Volatility continued as the barometer index, the S&P BSE Sensex, and the Nifty 50 index trimmed losses after both these indices hit their lowest level in more than three weeks. At 11:15 IST, Sensex was down 69.09 points or 0.27% at 25,160.61. The Nifty 50 index was currently down 23.90 points or 0.31% at 7,723.10. Weakness in global stocks weighed on sentiment on the domestic bourses. Meanwhile, the outcome of a monthly survey showed that growth in India's services sector eased last month due to a slower expansion in new business inflows.
The Sensex hit its lowest level in more than three weeks when it lost 133.51 points or 0.52% at the day's low of 25,096.19 in mid-morning trade. The barometer index lost 18.83 points or 0.07% at the day's high of 25,210.87 in opening trade. The Nifty, too, hit its lowest level in more than three weeks when it lost 43.15 points or 0.55% at the day's low of 7,703.85 in mid-morning trade. The index lost 8.80 points or 0.11% at the day's high of 7,738.20 at the onset of trading session.
The broad market depicted weakness. There were nearly two losers against every gainer on BSE. 1,318 shares declined and 692 shares rose. A total of 106 shares were unchanged. The BSE Mid-Cap index was currently down 0.56%. The BSE Small-Cap index was currently down 0.47%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
The outcome of a monthly survey showed that growth in India's services sector eased last month due to a slower expansion in new business inflows. The seasonally adjusted Nikkei Services Business Activity Index dropped to 53.7 in April 2016 from 54.3 in March 2016. April data highlighted a general lack of pressure on the capacity of Indian service providers, as unfinished business declined. Services firms' sentiment weakened slightly in April, with the degree of optimism being modest by historical standards.
In overseas stock markets, Asian stocks edged lower amid renewed global growth concerns in the wake of weaker-than-expected Chinese manufacturing data. The Caixin China general manufacturing purchasing managers' index fell to 49.4 in April 2016 from 49.7 in March 2016. A reading below 50 indicates economic contraction. The data was released during trading hours in Asia yesterday, 3 May 2016. China's official manufacturing PMI, a competing gauge, came in at 50.1 in April 2016 compared with 50.2 in March 2016, according to data released by the National Bureau of Statistics on 1 May 2016. The Chinese economy is the world's second biggest economy after the United States.
A surprise interest-rate cut by Australia's central bank has added to global economic jitters. The Reserve Bank of Australia yesterday, 3 May 2016, cut its benchmark interest rate by 25 basis points to record low of 1.75% in a bid to combat record-low inflation and a strong local currency. The decision was announced during trading hours in Asia. US stocks closed lower yesterday, 3 May 2016, led by declines in energy and materials stocks amid renewed global growth worries. Meanwhile, Cleveland Fed President Loretta Mester yesterday, 3 May 2016, said in a speech that waiting for global financial markets to calm down before raising interest rates may backfire and just lead to more volatility. Mester said she would like to see gradual interest-rate hikes this year. Mester is a voting member of the policy-setting Federal Open Market Committee (FOMC) this year. The FOMC next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
IT stocks declined. Tech Mahindra (down 1.13%), Wipro (down 0.96%), TCS (down 0.54%) and Oracle Financial Services Software (down 0.07%) edged lower. Persistent Systems (up 0.57%) and HCL Technologies (up 0.65%) edged higher.
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Index heavyweight and software major Infosys fell 0.57% at Rs 1,174. The stock hit a high of Rs 1,191 and a low of Rs 1,171.55 so far during the day.
Auto stocks witnessed a mixed trend. Ashok Leyland (down 1.09%), Mahindra & Mahindra (down 0.52%) and Bajaj Auto (down 0.29%) edged lower. TVS Motor Company (up 0.73%) and Maruti Suzuki India (up 0.12%) edged higher.
Eicher Motors was up 0.24%. The company is scheduled to announce its Q4 March 2016 results tomorrow, 5 May 2016.
Hero MotoCorp was up 0.49%. The company is scheduled to announce its Q4 March 2016 results tomorrow, 5 May 2016.
Tata Motors declined 3.22% at Rs 396.30 after the company revised downward the rate of growth in sales volume for April 2016 from the figures announced previously. The company announced that its total sales rose 8.9% to 39,418 units in April 2016 over April 2015. The company had earlier announced 9.9% growth in total sales in April 2016. The company announced the revised monthly sales volume data after market hours yesterday, 3 May 2016.
Aurobindo Pharma rose 1.31% at Rs 812.45, with the stock extending gains registered during the previous trading session triggered by reports that a foreign brokerage has initiated coverage on the Aurobindo Pharma stock with an "outperform" rating. The stock had surged 4.18% to settle at Rs 801.95 yesterday, 3 May 2016. The brokerage has reportedly said in a research report that Aurobindo Pharma is a beneficiary of faster approvals for its drugs in the US. It added that all key plants of the company are compliant with the US Food and Drug Administration (USFDA) norms. The brokerage expects Aurobindo's US sales to rise at a CAGR of 20% over next two years. The US market contributes 80% to Aurobindo's profits, according to the brokerage.
BASF India surged 4.64% at Rs 968 after the company reported net profit of Rs 76.81 crore in Q4 March 2016, compared with net loss of Rs 59.33 crore in Q4 March 2015. Net sales rose 7.5% to Rs 1148.86 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 3 May 2016.
Godrej Consumer Products fell 1.55% at Rs 1,340.50 after a bulk deal of 3.50 lakh shares was executed on the scrip at Rs 1,364.65 per share in opening bell on BSE today, 4 May 2016.
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