Intraday volatility continued as key benchmark indices recovered from lower level after trimming intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than a week. Earlier, the 50-unit CNX Nifty, too, had hit its highest level in more than a week in afternoon trade. The Sensex was currently up 111.92 points or 0.4% at 28,226.48. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.02%, outperforming the Sensex. Meanwhile, further reduction in diesel prices announced by state-run oil marketing companies on Friday, 31 July 2015, will reduce fuel price inflation. In the global commodities market, Brent crude oil prices edged lower on worries of oversupply as OPEC pumped at record levels in July, while weak China data stoked concerns about slower growth at the world's second largest oil consumer. Decline in global crude oil prices augur well for India.
Index heavyweight and cigarette major ITC extended gains in volatile trade. FMCG stocks declined. Pharma stocks were mixed. Shares of pharma major Dr Reddy's Laboratories scaled a record high, with the stock extending post result gain.
Meanwhile, the outcome of a monthly survey today, 3 August 2015, showed that manufacturing business conditions across India improved further in July 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 277.77 crore during the previous trading session on Friday, 31 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1021.34 crore on Friday, 31 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher with investors sorting through a fresh round of earnings reports, as the Greek equity market fell as it reopened for trading after a five-week halt. Asian stocks edged lower amid jitters about weakening Chinese manufacturing data and continued declines in commodity prices. Energy stocks led decline in US market during the previous trading session on Friday, 31 July 2015, after two energy giants Exxon Mobil and Chevron reported decline in their earnings.
At 14:18 IST, the S&P BSE Sensex was up 111.92 points or 0.4% at 28,226.48. The index jumped 135.11 points at the day's high of 28,249.67 in mid-afternoon trade, its highest level since 24 July 2015. The index fell 43.19 points at the day's low of 28,071.37 in early trade.
The CNX Nifty was up 27.40 points or 0.32% at 8,560.25. The index hit a high of 8,563.95 in intraday trade, its highest level since 24 July 2015. The index hit a low of 8,508.10 in intraday trade.
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The market breadth indicating the overall health of the market was strong. On BSE, 1,757 shares gained and 1,038 shares fell. A total of 106 shares were unchanged.
The BSE Mid-Cap index was up 72.63 points or 0.64% at 11,345.65. The BSE Small-Cap index was up 121.17 points or 1.02% at 11,951.97. Both these indices outperformed the Sensex.
Index heavyweight and cigarette major ITC gained 1.75% to Rs 331.90. The stock hit a high of Rs 333.20 and low of Rs 325.10 so far during the day.
FMCG stocks declined. Britannia Industries (down 1.63%), Colgate-Palmolive (India) (down 0.84%), Dabur India (down 0.56%), Hindustan Unilever (down 1.06%), Marico (down 1.32%), Nestle India (down 0.08%), Procter & Gamble Hygiene and Health Care (down 0.41%), Jyothy Laboratories (down 1.28%) and Bajaj Corp (down 0.82%) declined. Godrej Consumer Products (up 3.18%), GlaxoSmithkline Consumer Healthcare (up 0.34%) and Tata Global Beverages (up 1.11%) rose.
Pharma stocks were mixed. Sun Pharmaceutical Industries (up 1.06%), GlaxoSmithKline Pharmaceuticals (up 1.2%) and Wockhardt (up 1.82%) rose. Cadila Healthcare (down 1.94%), Cipla (down 0.23%), Glenmark Pharmaceuticals (down 1.76%), Lupin (down 1.75%), Aurobindo Pharma (down 0.45%) fell.
Dr Reddy's Laboratories gained 1.32% to Rs 4,119.35 after scaling a record high of Rs 4,131.90 in intraday trade today, 3 August 2015. The stock extended post result gain. Dr Reddy's Laboratories' consolidated net profit rose 13.67% to Rs 625.65 crore on 6.62% rise in total income to Rs 3770.25 crore in Q1 June 2015 over Q1 June 2014. The company announced results during market hours on 30 July 2015.
Meanwhile, further reduction in diesel prices announced by state-run oil marketing companies on Friday, 31 July 2015, will reduce fuel price inflation. Diesel is a key transportation fuel. Indian Oil Corporation (IOCL) after trading hours on Friday, 31 July 2015, announced reduction in petrol and diesel prices with effect from 1 August 2015. The retail selling price of diesel was reduced by Rs 3.60 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi has become Rs 46.12 per litre. The retail selling price of petrol was reduced by Rs 2.43 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of petrol in Delhi has become Rs 64.47 per litre.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on worries of oversupply as the Organization of the Petroleum Exporting Countries (OPEC) pumped at record levels in July, while weak Chinese data stoked concerns about slower growth at the world's second largest oil consumer. Brent for September settlement was currently off 96 cents at $51.25 a barrel. The contract had fallen $1.1 a barrel or 2.06% to settle at $52.21 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, the outcome of a monthly survey today, 3 August 2015, showed that manufacturing business conditions across India improved further in July 2015. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) printed a six-month high of 52.7 in July 2015, up from 51.3 in June 2015. Underpinning the rise in production levels was a sharper increase in new business inflows. Growth of new orders gathered pace across the three broad areas of the manufacturing economy. Anecdotal evidence highlighted stronger demand from both domestic and foreign clients. Reflecting the rebound in new orders, Indian manufacturers raised their buying levels in July. The rate of expansion was marked and faster than in June.
Despite the uptick in growth, Indian manufacturers continued to cut workforce numbers in July. Nonetheless, the rate of job shedding was only marginal as around 96% of panellists reported no change in employment from the levels recorded in the prior month. Purchase prices for Indian manufacturers rose further in July. Despite quickening since June, the rate of inflation was only marginal and well below the series long-run trend. Selling prices were unchanged on average, with companies highlighting efforts to secure new business.
Meanwhile, the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement is due at 11:00 IST tomorrow, 4 August 2015. The RBI had cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review on 2 June 2015.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 2 August 2015, said that the Southwest Monsoon was vigorous over Jharkhand and was active over Gangetic West Bengal during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 2 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 6% below the LPA in Central India and 9% above the LPA in Northwest India until 2 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European stocks edged higher today, 3 August 2015, with investors sorting through a fresh round of earnings reports, as the Greek equity market fell as it reopened for trading after a five-week halt. Key benchmark indices in France and Germany were up 0.2% to 0.35%. In UK, the FTSE 100 was off 0.13%.
In Greece, the Athex Composite index tumbled after trading on the Greece stock market resumed today, 3 August 2015, after a five-week shutdown. The Athex Composite was currently off 18.5% at 649.38. Trading on the Greece stock market was suspended on 29 June 2015 after Greek Prime Minister Alexis Tsipras called a referendum on the country's bailout terms.
Asian stocks edged lower today, 3 August 2015, amid signs of a deepening slowdown in China's economy, the world's second-largest economy. Key benchmark indices in Indonesia, Singapore, Taiwan, Japan and South Korea fell by 0.18% to 1.63%.
Weak manufacturing data dragged Chinese stocks. In mainland China, the Shanghai Composite dropped 1.11%. In Hong Kong, the Hang Seng index fell 0.91%.
A gauge of China's factory activity slipped in July, pointing to further sluggishness in the key manufacturing sector of the world's second-largest economy. China's official manufacturing purchasing managers index slipped to 50 in July from 50.2 in June, the National Bureau of Statistics said Saturday, 1 August 2015. A reading of 50 is right at the cutoff point between expansion and contraction compared with the previous month.
The official gauge was still better than a competing measure compiled by research house Markit and Chinese media firm Caixin. Their preliminary PMI estimate was below the 50 level at 48.2--the lowest reading in 15 months.
Energy stocks led decline in US market during the previous trading session on Friday, 31 July 2015, after two energy giants Exxon Mobil and Chevron reported decline in their earnings. Investors also were debating whether data showing weak wage growth could prompt the Federal Reserve to think twice about raising interest rates in September. The wages and benefits that companies, governments and nonprofit institutions pay their employees rose a record-low 0.2% in the second quarter, according to the employment cost index released by the Labor Department. Separately, Chicago PMI rose in July to the highest level since January, suggesting a pickup in business during the summer.
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