Key benchmark indices recovered from lower level and were trading near the flat line in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 4.35 points or 0.01% at 32,519.30. The Nifty 50 index was up 9.65 points or 0.1% at 10,086.75. Firm cues from Asian stocks were offset by private survey showing Indian manufacturing activity contracting in July.
After opening with a positive bias on firm Asian stocks, key indices traded in a narrow range in positive terrain till morning trade. Indices dropped into the negative terrain in mid-morning trade.
The S&P BSE Mid-Cap index rose 0.52%. The S&P BSE Small-Cap index gained 0.02%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,309 shares fell and 1,073 shares rose. A total of 146 shares were unchanged.
Capital goods stocks dropped. BEML (down 0.24%), Bharat Heavy Electricals (Bhel) (down 0.21%), L&T (down 1.3%), Thermax (down 0.29%), and Siemens (down 3.66%) declined. Havells India rose 0.24%.
IT stocks were mixed. HCL Technologies (down 0.98%) and Infosys (down 1.08%) declined. TCS (up 0.3%) and Wipro (up 1.59%) edged higher.
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Tech Mahindra jumped 4.94% after consolidated net profit rose 34.27% to Rs 791.79 crore on 0.17% growth in total income to Rs 7746.79 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 31 July 2017.
Tech Mahindra's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 12.7% to Rs 935 crore in Q1 June 2017 over Q4 March 2017.
InterGlobe Aviation fell 0.29%. The company's net profit rose 37.07% to Rs 811.15 crore on 25.64% rise in net sales to Rs 5752.91 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 31 July 2017.
InterGlobe Aviation said it reported the highest quarterly profit ever. The company's EBITDAR (earnings before finance income and cost, tax, depreciation, amortization and aircraft and engine rentals) rose 26.3% to Rs 19618 crore in Q1 June 2017 over Q1 June 2016.
Trent gained 3.88% after net profit spurted 63.7% to Rs 38.15 crore on 24.9% increase in net sales to Rs 499.16 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 31 July 2017.
On the macroeconomic data front, Markit Economics said today, 1 August 2017 that the introduction of the goods & services tax (GST) weighed heavily on the Indian manufacturing industry in July. New orders and output decreased for the first time since the demonetisation-related downturn recorded in December last year, with rates of contraction the steepest since February 2009 in both cases. At 47.9 in July, down from 50.9 in June, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) was at its lowest mark since February 2009 and highlighted the first deterioration in business conditions in 2017 so far.
Meanwhile, the combined index of eight core industries, comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 0.4% in June 2017 over June 2016. Its cumulative growth during April to June, 2017-18 was 2.4%.
GDP growth rate of India will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth, reported a study conducted by a leading research agency, Moody's. According to the US-based agency estimates, the economy will grow 7.5% in 2016-17 and 7.7% in 2017-18. While it forecasted that the economic growth will gradually increase to around 8% over the next 3-4 years.
Overseas, most Asian stocks gained on rising confidence in global growth. Growth in China's manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales. The Caixin/Markit Manufacturing PMI rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June.
Japan's manufacturing activity grew in July at the slowest pace in eight months as export demand weakened, a private survey showed. The Markit/Nikkei Japan Final Manufacturing PMI dipped to 52.1 in July on a seasonally adjusted basis, slightly weaker than a preliminary reading of 52.2 and a final 52.4 in the previous month.
In US, the Dow Jones Industrials Average finished at an all-time high yesterday, 31 July 2017, but the broader market's gains were hobbled by losses in the technology sector.
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