A range bound movement was witnessed as key benchmark indices languished in negative zone in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex was down 170.01 points or 0.66% at 25,436.61. The decline for the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 40.55 points or 0.52% at 7,809.25. Data showing slowdown in growth in manufacturing sector in April 2016 and weakness in Japanese stocks weighed on the domestic bourses.
The Sensex hit its lowest level in nearly 3 weeks when it lost 265.48 points or 1.03% at the day's low of 25,341.14 in mid-morning trade. The barometer index lost 41.18 points or 0.16% at the day's high of 25,565.44 in early trade. The Nifty, too, hit its lowest level in nearly 3 weeks when it lost 72.50 points or 0.92% at the day's low of 7,777.30 in mid-morning trade. The index lost 20 points or 0.25% at the day's high of 7,829.80 in early afternoon trade.
In overseas stock markets, most European stocks rose as a sharp decline in the previous session prompted investors to look for bargains. Japanese stocks edged lower as the Japanese yen surged to 1-1/2-year high against the dollar. The Nikkei 225 Average ended 3.11% lower. The stronger yen makes Japanese exports less competitive and cuts into the value of repatriated earnings. Japanese stocks extended losses registered during the previous trading session triggered by the Bank of Japan's (BOJ) decision to keep its policies unchanged. Speculation was rife that the Japanese central bank would announce a further easing of the monetary policy to stimulate Japan's economy. Japanese markets were closed on Friday, 29 April 2016, for a national holiday. Many other Asian markets were closed today, 2 May 2016, for a holiday.
US stocks edged lower during the previous trading session on Friday, 29 April 2016, after weak consumer spending data for March 2016 and after the monthly Chicago Business Barometer index for April showed slowdown in the manufacturing sector. The Chicago Business Barometer decreased 3.2 points to 50.4 in April from 53.6 in March led by a fall in new orders and a sharp drop in order backlogs. It marked a slow start to the second quarter, with most measures down from levels seen a year earlier.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,218 shares declined and 1,124 shares rose. A total of 132 shares were unchanged. The BSE Mid-Cap index was currently up 0.94%. The BSE Small-Cap index was currently up 0.17%. Both these indices outperformed the Sensex.
Mahindra & Mahindra (M&M) was up 0.36% at Rs 1,336.50 after reporting good auto sales in April 2016. The company's total automobile sales increased 14% to 41,863 units in April 2016 over April 2015. Sales in the domestic market rose 14% to 39,357 units in April 2016 over April 2015. Exports rose 11% to 2,506 units in April 2016 over April 2015.
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The company's total tractor sales increased 19% to 21,386 units in April 2016 over April 2015. Sales in the domestic market rose 22% to 20,704 units in April 2016 over April 2015. Exports fell 32% to 682 units in April 2016 over April 2015. The company disclosed sales volume data during market hours today, 2 May 2016.
Metal shares edged higher. Vedanta (up 6.02%), Hindalco Industries (up 3.58%), Hindustan Zinc (up 1.86%), Hindustan Copper (up 1.76%), Jindal Steel & Power (up 1.72%), NMDC (up 1.10%), Bhushan Steel (up 1%), Steel Authority of India (up 0.63%) and National Aluminium Company (up 0.33%), edged higher. JSW Steel (down 0.19%) and Tata Steel (down 0.67%), edged lower.
Copper prices edged lower in the global commodities markets. High Grade Copper for July 2016 delivery was currently down 0.33% at $2.276 per pound on the COMEX.
Sugar stocks were in demand. Oudh Sugar Mills (up 4.12%), Upper Ganges Sugar & Industries (up 3.91%), Empee Sugars and Chemicals (up 3.28%), Rana Sugars (up 1.91%), Dhampur Sugar Mills (up 1.30%), Balrampur Chini Mills (up 0.98%), KCP Sugar & Industries Corporation (up 0.97%), Triveni Engineering & Industries (up 0.85%), Bajaj Hindusthan Sugar (up 0.76%), Shree Renuka Sugar (up 0.75%), DCM Shriram Industries (up 0.16%) and Sakthi Sugars (up 0.13%), edged higher. Dwarikesh Sugar Industries (down 0.1%), EID Parry (India) (down 1.59%) and Eastern Sugar & Industries (down 3.64%) edged lower.
Navin Fluorine International jumped 12.78% after net profit surged 89.6% to Rs 31.50 crore on 30.1% rise in net sales to Rs 189.36 crore in Q4 March 2016 over Q4 March 2015. Navin Fluorine International's earnings before interest, taxes, depreciation and amortization (EBITDA) rose 95% to Rs 36 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 18.9% in Q4 March 2016, from 12.6% in Q4 March 2015. The result was announced before market hours today, 2 May 2016.
Yes Bank rose 0.71% after the Reserve Bank of India (RBI) gave its approval for the increase in investment limit by foreign Investors in the bank to 60% from earlier 49%. The Reserve Bank of India (RBI) made the notification on Friday, 29 April 2016.
RBI notified on Friday, 29 April 2016, that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 60% of the paid-up capital of the bank from existing 49% under the Portfolio Investment Scheme (PIS). The RBI notified that the total foreign investment from all sources i.e. Global Depository Receipts (GDR)/American Depository Receipts (ADR)/Foreign Direct Investment (FDI)/Foreign Institutional Investors (FII)/ Registered Foreign Portfolios Investors (RFPIs)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) in the company shall not exceed 60%. The central bank stated that Yes Bank has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
Meanwhile, the outcome of a monthly survey showed that growth in India's manufacturing sector eased last month amid broadly stagnant inflows of new work. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 50.5 in April 2016 from 52.4 in March 2016. Indian manufacturers saw incoming new orders broadly stagnate in April, following three consecutive months of growth. New export orders expanded at the slowest pace since last October. Input cost inflation accelerated to the fastest since May 2015. Part of the additional cost burden was passed on to clients as selling prices rose further.
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