Key benchmark indices were trading with small gains after regaining positive terrain in afternoon trade sighting higher opening in European stocks. At 13:20 IST, the barometer index, the S&P BSE Sensex was up 32.54 points or 0.11% at 29,950.94. The Nifty 50 index was up 15.50 points or 0.17% at 9,319.55. The Sensex was trading below the psychological 30,000 level after hovering above that level till morning trade. Power and capital goods stocks declined.
Earlier, the Sensex and the Nifty had slipped into the negative terrain in mid-morning trade after hovering in positive zone till morning trade as Markit data on India's manufacturing sector in April disappointed investors.
The BSE Mid-Cap index rose 0.16%. The BSE Small-Cap index rose 0.27%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,400 shares declined and 1,266 shares rose. A total of 143 shares were unchanged.
Capital goods stocks dropped. BEML (down 1.02%), Bharat Heavy Electricals (Bhel) (down 0.11%), Havells India (down 0.9%), L&T (down 0.92%), and Bharat Electronics (down 0.27%) declined.
Thermax advanced 1.61% after the company announced that it has won export contracts from a leading African conglomerate to supply 4 utility boilers, 8 heat recovery steam generators and 2 flue gas steam generators for its refinery and petrochemical project coming up in Nigeria.
The scope of supply covers design, engineering, procurement, manufacturing and testing, and supervision of commissioning of these equipment at the site. The order is valued at approximately $157 million. The announcement was made after market hours on Friday, 28 April 2017.
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Shares of power generation and power distribution companies edged lower. Torrent Power (down 0.6%), NHPC (down 0.32%), Tata Power Company (down 0.48%), NTPC (down 1.19%), Adani Power (down 1.37%), Power Grid Corporation of India (down 1.18%), Reliance Infrastructure (down 0.47%) and Reliance Power (down 1.33%) declined. GVK Power & Infrastructure rose 0.81%.
Coal India was off 0.07%. The company said that production of the company and its subsidiary companies on provisional basis was 88% of targeted production at 38.44 million tonnes in April 2017. Offtake was 91% of target at 45.29 million tonnes in April 2017. The announcement was made during market hours today, 2 May 2017.
Escorts gained 2.83% after the company reported strong tractor sales in April 2017 over April 2016. The announcement was made on Monday, 1 May 2017, when domestic stock markets remained closed, for a local holiday.
Escorts said agri machinery segment (EAM) reported 20% growth in total tractor sales to 4,899 units in April 2017 over April 2016. Domestic tractor sales rose 18% to 4,760 units in April 2017 over April 2016. Exports rose 266% to 139 units in April 2017 over April 2016.
Rushil Decor rose 2.72% after net profit spurted 848.5% to Rs 6.45 crore on 13.7% increase in net sales to Rs 82.27 crore in Q4 March 2017 over Q4 March 2016. The result was announced on Saturday, 29 April 2017.
On the macro front, Markit Economics in a press release issued during market hours today, 2 May 2017, said that manufacturing conditions in India improved for the fourth straight month in April. However, the headline Nikkei India Manufacturing Purchasing Managers' index (PMI) remained unchanged at 52.5 in April as in March.
Meanwhile, the combined index of eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) stood at 202.9 in March 2017, which was 5% higher compared to the index of March 2016. The data was released by the government yesterday, 1 May 2017.
Overseas, European stocks edged higher in early trade as investors returned from a May holiday weekend. Most Asian stocks gained after resumption of trading at major stock exchanges after being shut for a public holiday on Monday, 1 May 2017.
China's nationwide factory activity expanded at a slower pace in April, with a private gauge falling to a seven-month low. The Caixin China manufacturing purchasing managers' index dropped to 50.3 in April from 51.2 in March, indicating a slower expansion of activity, Caixin Media Co. and research firm Markit said today, 2 May 2017.
The softer Caixin PMI reading comes after a moderation in a competing government gauge. China's official manufacturing PMI fell to a six-month low of 51.2 in April compared with 51.8 in March, the National Bureau of Statistics said on Sunday, 30 April 2017.
US stocks closed slightly higher on Monday, 1 May 2017, shaking off comments from President Donald Trump about breaking up the big banks.
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