Key equity benchmarks firmed up in mid-morning trade amid positive cues from other Asian shares. At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 83.35 points or 0.21% at 38,955.22. The Nifty 50 index was up 20.85 points or 0.18% at 11,690. The Sensex was trading below 39,000 mark after crossing that level in early trade.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) eased to a six-month low of 52.60 in March compared with 54.30 in February. The latest figure highlighted a loss of growth momentum. Consumer goods was the brightest spot in March, followed by the intermediate and then investment goods categories. The data was announced during trading hours today, 2 April 2019.
Meanwhile, India's Supreme Court reportedly dismissed a Reserve Bank of India (RBI) circular that gave firms 180 days for debt resolution, failing which the issue would be taken under the country's bankruptcy. Several companies, especially power firms, had sought intervention of the Supreme Court saying the time given by the central bank was not enough time to tackle the debt issue, reports added.
Among secondary barometers, the BSE Mid-Cap index was up 0.33%. The BSE Small-Cap index was up 0.05%.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1115 shares rose and 986 shares fell. A total of 115 shares were unchanged.
IT shares were mixed. Hexaware Technologies (up 1.71%), Oracle Financial Services Software (up 1.37%), TCS (up 0.90%), MindTree (up 0.60%), Infosys (up 0.51%) and Tech Mahindra (up 0.01%), edged higher. Wipro (down 0.08%), Persistent Systems (down 0.11%), MphasiS (down 0.3%) and HCL Technologies (down 1.35%), edged lower.
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Most pharmaceuticals shares declined. Piramal Enterprises (down 2%), Divi's Laboratories (down 1.11%), Wockhardt (down 0.62%), Alkem Laboratories (down 0.49%), IPCA Laboratories (down 0.37%), Glenmark Pharmaceuticals (down 0.3%), Aurobindo Pharma (down 0.19%), Strides Shasun (down 0.07%), Dr Reddy's Laboratories (down 0.06%) and GlaxoSmithKline Pharmaceuticals (down 0.02%), edged lower. Sun Pharmaceutical Industries (up 0.06%), Cadila Healthcare (up 0.58%) and Lupin (up 1.64%), edged higher.
Cipla was down 0.34%. The company's wholly owned subsidiary in USA i.e. Cipla Technologies LLC, has signed a binding term sheet with Pulmatrix Inc., ("Pulmatrix") for an investment in Phase 2 ready asset co-development and licensing opportunity for Pulmazole (Inhaled ltraconazole) for an upfront consideration of USD 22 million. Entry into a definitive agreement is contingent upon Pulmatrix raising additional funds from the market. Upon signing the definitive agreement, the co-development cost towards development and the total free cash flow in relation to commercialization of Pulmazole will be further shared by both the parties in a phased manner. The announcement was made after market hours yesterday, 1 April 2019.
On the economic front, the output of eight core industries, comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP), rose 2.1% in February 2019. The cumulative output has improved 4.3% in April to February 2018-19.
Overseas, Asian stocks were trading higher Tuesday following overnight gains on Wall Street. US stocks ended higher Monday, boosted by better-than-expected economic reports, momentarily allaying fears of flagging economic growth.
Investors were also hopeful for a resolution to the US-China trade conflict, with a Chinese delegation led by Vice Premier Liu He set to visit Washington later this week.
On Monday, the Institute for Supply Management's manufacturing index showed that activity in the sector accelerated, coming in at a stronger-than-expected 55.3 in March versus a two-year low of 54.2% a month earlier. A reading above 50 indicates an expansion in activity.
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