Market settles with modest gains amid volatility

Trading for the week finished on a positive note as key indices settled with modest gains after a volatile and range bound session of trade as firmness in European stocks perked up sentiment. The barometer index, the S&P BSE Sensex, gained 86.57 points or 0.27% at 32,324.45, as per the provisional closing data. The Nifty 50 index rose 56.50 points or 0.56% at 10,070.15, as per the provisional closing data. Nifty settled above the psychologically important 10,000 mark after falling below the mark in intraday trade. Caution prevailed in global stocks ahead of US nonfarm payroll data for July, which is due later in the global day.

Key indices had opened slightly higher on firm Asian stocks but soon dropped in the red. Stocks swung between gains and losses near the flat line in morning trade. Market languished in the red after extending losses in mid-morning trade. Indices reversed losses in mid-afternoon trade. Stocks extended gains in late trade after European stocks turned positive.

The S&P BSE Mid-Cap index provisionally rose 0.66%, outperforming the Sensex. The S&P BSE Small-Cap index provisionally gained 0.1%, underperforming the Sensex.

However, the breadth, indicating the overall health of the market, was negative. On the BSE, 1,384 shares fell and 1,201 shares rose. A total of 173 shares were unchanged.

The total turnover on BSE amounted to Rs 3813.99 crore, lower than turnover of Rs 3950.16 crore registered during the previous trading session.

Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 1.81%), Bhushan Steel (up 1.04%), Vedanta (up 3.23%), Hindalco Industries (up 1.97%), Hindustan Zinc (up 1.4%), Tata Steel (up 3.47%), Steel Authority of India (Sail) (up 1.98%), National Aluminum Company (up 3.75%) and NMDC (up 3.13%) gained. Hindustan Copper (down 0.72%) and Jindal Steel & Power (down 2.53%) declined. High Grade Copper for September 2017 delivery was currently up 0.3% at $2.8865 per pound on the COMEX.

Mahindra & Mahindra (M&M) declined 0.2% after consolidated net profit fell 9% to Rs 859 crore on 3.74% rise in gross revenue to Rs 23212 crore in Q1 June 2017 over Q1 June 2016.

The company's net profit fell 19.79% to Rs 765.96 crore on 3.12% rise in total income to Rs 12540.20 crore in Q1 June 2017 over Q1 June 2016.

The automotive industry in Q1 June 2017 was impacted due to the impending transition to goods and services tax (GST) from 1 July 2017 with the passenger vehicles sales being adversely impacted in anticipation of a price reduction due to GST and reporting a nominal growth of 4.4%. The sales of heavy commercial vehicle goods segment showed a dip as a result of pre-buying of BS3 vehicles in Q4 March 2017, saturation of replacement demand and production constraints of BS4 models leading to Q1 June 2017 sales being the lowest in past 13 quarters.

Based on a normal monsoon outlook, tractors sales continued to post growth for the months of April and May 2017. However June 2017 witnessed a de-growth of 1.7% owing to the uncertainty with regard to transition to a GST regime. Overall the domestic tractor industry witnessed a growth of 8.5% in Q1 June 2018. The company however, outperformed the industry and grew 13.2% leading to the highest ever domestic tractor market share for a quarter at 45.8%.

TTK Healthcare lost 7.46% after the company reported net loss of Rs 4.47 crore in Q1 June 2017, as compared with net profit of Rs 5.59 crore in Q1 June 2016. TTK Healthcare's total income fell 17.81% to Rs 126.56 crore in Q1 June 2017 over Q1 June 2016. The Q1 result was announced during market hours today, 4 August 2017.

Graphite India jumped 6.45% after net profit spurted 167.97% to Rs 29.45 crore on 26.85% increase in total income to Rs 397.38 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 4 August 2017.

India Meteorological Department said that actual cumulative area weighted rainfall (mm) for the country as a whole till 2 August 2017 equaled normal rainfall.

Meanwhile, the Banking Regulation (Amendment) Bill 2017 was passed by the lower house of the parliament yesterday, 3 August 2017. It will replace the Non-Performing Assets Ordinance, which came into effect earlier this year. The measure allows the RBI to initiate insolvency resolution process on specific stressed-assets. The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed-asset resolution.

Overseas, European stocks reversed losses as investors monitored earnings reports. The Bank of England (BOE) yesterday, 3 August 2017, held interest rates steady at 0.25%, as expected, while largely sticking to its previous assumptions for growth and inflation over the three-year forecast horizon. The Monetary Policy Committee (MPC) voted by a majority of 6-2 to keep rates at record low levels in August. Meantime, the UK's central bank maintained stock levels of government bonds and corporate bonds at 435 billion and 10 billion respectively.

The closely watched Ifo business-sentiment index rose last month to its highest level since German reunification. Germany's economics ministry said that total orders for the important manufacturing sector increased by 1% compared with May, adjusted for seasonal swings and calendar effects.

Asian stocks were mixed ahead of the US employment report.

In US, Dow Jones Industrials Average managed to post slight gains, staying above the 22,000 level and hitting fresh record high while, the S&P 500 index and Nasdaq Composite index closed lower weighed down by Amazon.com, Apple and other top-shelf technology stocks yesterday, 3 August 2017.

Labor Department data showed weekly jobless claims fell last week, pointing to a tightening labour market, while a report from the Institute for Supply Management showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. US employment report for July is due later during the global day.

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