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Market slips into red

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Capital Market
Last Updated : May 02 2017 | 11:47 AM IST

Key benchmark indices slipped into the negative zone from positive zone in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex was down 56.02 points or 0.19% at 29,862.38. The Nifty 50 index was down 16.50 points or 0.18% at 9,287.55. The Sensex was trading below the psychological 30,000 level after hovering above that level till morning trade.

The Sensex and the Nifty slipped into the negative terrain after hovering in positive zone till morning trade as Markit data on India's manufacturing sector in April disappointed investors.

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.

The Sensex lost 114.28 points or 0.38% at the day's low of 29,804.12 in mid-morning trade. It rose 150.84 points or 0.5% at the day's high of 30,069.24 in morning trade, its highest level since 27 April 2017. The Nifty lost 17.95 points or 0.19% at the day's low of 9,286.10 in mid-morning trade. It rose 48.50 points or 0.52% at the day's high of 9,352.55 in morning trade, its highest level since 27 April 2017.

The BSE Mid-Cap index fell 0.37%. The decline in this index was higher than the Sensex's slide in percentage terms. The BSE Small-Cap index lost 0.11%. The decline in this index was lower than the Sensex's slide in percentage terms.

The breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,304 shares declined and 1,164 shares rose. A total of 129 shares were unchanged.

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Cement stocks declined. ACC (down 2.65%), Shree Cement (down 1.62%) and UltraTech Cement (down 1.42%) edged lower. Grasim Industries was up 0.24%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Ambuja Cements lost 3.46% as consolidated operating earnings before interest, taxation, depreciation and amortization (EBITDA) dropped 9.71% to Rs 809 crore in Q1 March 2017 over Q1 March 2016. Net profit rose 38.04% to Rs 396.96 crore on 6.83% growth in net sales to Rs 5631.90 crore in Q1 March 2017 over Q1 March 2016. The result was announced after market hours on Friday, 28 April 2017. Domestic stock markets remained closed on Monday, 1 May 2017, for a local holiday.

Ambuja Cements' MD and CEO Ajay Kapur said that improving sales volumes, combined with favourable pricing, contributed to a positive quarter despite rising costs. Following demonetisation, the company is well placed to serve both small and large customers.

In its outlook, the company said that medium to long term outlook for cement demand remains positive due to the governments continued focus on infrastructure development, affordable housing, smart cities, concrete roads and highways coupled with remonetisation.

Realty stocks surged on renewed buying. Sobha (up 7.36%), Godrej Properties (up 4.53%), D B Realty (up 2.98%), Indiabulls Real Estate (up 2.74%), DLF (up 1.61%), Prestige Estates Projects (up 1.57%) and Unitech (up 0.53%) edged higher. Oberoi Realty (down 0.48%) and HDIL (down 0.06%) edged lower.

Uttam Galva Steels surged 8.77% after the company reported net profit of Rs 138.89 crore in Q4 March 2017, compared with net loss of Rs 671.47 crore in Q4 March 2016. Net sales fell 48.2% to Rs 893.94 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours on Friday, 28 April 2017.

On the macro front, 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, Asian stocks were mixed after resumption of trading at major stock exchanges after being shut for a public holiday on Monday, 1 May 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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First Published: May 02 2017 | 11:24 AM IST

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