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Market breadth turns negative from positive

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Last Updated : Sep 01 2016 | 12:47 PM IST

Key benchmark indices continued to hover alternately between the positive and negative terrain in a small range in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was currently down 1.83 points or 0.01% at 28,446.35. The Nifty 50 index was currently down 5.75 points or 0.07% at 8,780.45.

The Sensex slipped 37.77 points or 0.13% at the day's low of 28,416.54 in early afternoon trade. The barometer index rose 90.55 points or 0.31% at the day's high of 28,542.72 in early trade, its highest level since 23 July 2015. The Nifty shed 15.60 points or 0.17% at the day's low of 8,770.60 in early afternoon trade. The index rose 25.55 points or 0.29% at the day's high of 8,811.75 in early trade.

In overseas stock markets, Asian stocks were mixed as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.

US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.

Closer home, the market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,300 shares fell and 1,105 shares rose. A total of 103 shares were unchanged. The BSE Mid-Cap index was currently down 0.02%. The decline in this index was higher than the Sensex's fall in percentage terms. The BSE Small-Cap index was currently 0.01%. The decline in this index matched with the Sensex's fall in percentage terms.

Realty stocks declined. Indiabulls Real Estate (down 0.79%), Unitech (down 0.93%), Oberoi Realty (down 0.76%), DLF (down 2.96%), and Godrej Properties (down 1.38%) edged lower. Sobha rose 0.96%.

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IT stocks were mixed. HCL Technologies (up 0.12%) and Tech Mahindra (up 0.17%) gained. TCS (down 0.36%), Infosys (down 0.38%), and Wipro (down 1.69%) edged lower.

Eicher Motors declined 0.19%. The company said total sales of VE Commercial Vehicles Limited, an unlisted subsidiary of the company rose 12.93% to 4,191 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.

Dr Reddy's Laboratories declined 0.11%. The company announced the launch of Purple Health, a unique patient-centric platform that takes care beyond the pill. The platform is designed to inspire patient centric innovation and deliver solutions to address unmet needs of patients. The announcement was made during market hours today, 1 September 2016. Starting with the Indian market, the new packaging will be rolled out in phased manner over the next six months for 25 of its focus brands.

Multi Commodity Exchange of India rose 0.81% after net profit rose 54.55% to Rs 32.81 crore on 23.13% rise in total income to Rs 93.79 crore in Q1 June 2016 over Q1 June 2015. The announcement was made after market hours yesterday, 31 August 2016. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 37% to Rs 52.99 crore in Q1 June 2016 over Q1 June 2015.

Hathway Cable & Datacom fell 4.97% after the company reported net loss of Rs 53.20 crore in Q1 June 2016 as against net loss of Rs 37.38 crore in Q1 June 2015. The result was announced after market hours yesterday, 31 August 2016. The company's net sales rose 16.9% to Rs 301.02 crore in Q1 June 2016 over Q1 June 2015.

KEC International rose 1.7% after the company said it has secured new orders worth Rs 1224 crore. The announcement was made after market hours yesterday, 31 August 2016. KEC International's transmission & distribution business secured orders worth Rs 805 crore. The company's cables business received orders worth Rs 171 crore and railway business secured orders worth Rs 248 crore.

On macro front, results of private survey today, 1 September 2016 showed that the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - showed a solid improvement in the health of the sector in August, climbing from 51.8 in July to a 13-month high of 52.6. Indian manufacturers enjoyed a solid improvement in operating conditions during August. With demand from the domestic and external markets picking up, companies raised output accordingly. Firms recorded an easing in cost inflation during the month, which in turn resulted in a softer overall increase in factory gate charges.

Meanwhile, India's Gross Domestic Product (GDP) growth slowed down to 7.1% in Q1 June 2016, as against 7.9% in Q4 March 2016 and 7.5% increase in Q1 June 2015.

The index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015. Cumulative eight core infrastructure sector growth stood at 4.9% in the four months period from April to July 2016. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 38% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.

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First Published: Sep 01 2016 | 12:19 PM IST

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