A bout of volatility was witnessed in early afternoon trade as key benchmark indices weakened once again after trimming intraday losses. At 12:20 IST, the barometer index, the S&P BSE Sensex was down 66.99 points or 0.25% at 27,211.77. The Nifty 50 index was currently down 22.60 points or 0.27% at 8,348.10. A private survey showing that India's services sector activity slowed in June and weakness in Asian stocks weighed on sentiment. Investors resorted to profit booking after key indices gained for the last six sessions.
The Sensex shed 104.97 points or 0.38% at the day's low of 27,173.79 in mid-morning trade. The barometer index rose 69.90 points or 0.49% at the day's high of 27,348.66 at the onset of the trading session. The Nifty lost 34.60 points or 0.41% at the day's low of 8,336.10 in mid-morning trade. The index rose 10.75 points or 0.12% at the day's high of 8,381.45 at the onset of the trading session.
In overseas stock markets, Asian stocks edged lower on profit booking as investors took stock of a recent rally driven by the hope that central banks will provide stimulus to offset a likely downturn triggered by Brexit. China's services sector rose to an 11-month high in June, a private survey showed today, 5 July 2016. The Caixin/Markit services purchasing managers' index (PMI) for June rose to 52.7 from 51.2 in May on a seasonally adjusted basis. Readings above 50 indicate an expansion on a monthly basis, while readings below signal contraction. US market remained shut yesterday, 4 July 2016, on account of Independence Day.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,299 shares rose and 1,177 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.15%. The BSE Small-Cap index was currently up 0.18%. Both these indices outperformed the Sensex.
Metal & mining stocks gained. JSW Steel (up 0.28%), Hindustan Copper (up 7.24%), Hindalco Industries (up 0.2%), Hindustan Zinc (up 0.3%), Jindal Steel & Power (up 2.42%), Tata Steel (up 1.24%), Steel Authority of India (Sail) (up 2.03%), National Aluminum Company (up 1.05%) and NMDC (up 2.22%) gained. Vedanta fell 0.22%.
Bhushan Steel rose 0.83%. The company said it is taking shut down of its hot strip mill situated at district Dhenkanal, Orissa, for about 20 days for capacity addition from 4 million tonne per annum (mtpa) to 5 mtpa. The announcement was made after market hours yesterday, 4 July 2016.
Also Read
High Grade Copper for September 2016 delivery was currently down 0.5% at $2.206 per pound on the COMEX.
Shares of Jaypee Group firms spurted after Jaiprakash Associates announced divestment of its cement plants spread across five states in favour of UltraTech Cement for enterprise value of Rs 16189 crore. Jaiprakash Associates (up 28.08%), Jaypee Infratech (up 14.97%) and Jaiprakash Power Ventures (up 15.66%), surged. Shares of Jaypee Group companies spurted in anticipation that the deal with UltraTech Cement (UTCL) will help Jaypee Group pare its debt. Commenting on the divestment of some units of Jaiprakash Associates, Manoj Gaur, executive chairman, Jaypee Group said that the Jaypee Group is determined to reduce its overall debt through its proactive divestment initiatives to help the Group tide these current turbulent times caused by economic slowdown in the country. The Group would continue to leverage expertise in the fields of engineering & construction, real estate and project execution in a committed manner, he said.
Dhanlaxmi Bank rose 2.5% after the bank said that its board of directors approved the proposal for further issue of equity shares upto a maximum of Rs 200 crore on preferential allotment basis. The announcement was made before trading hours today, 5 July 2016.
Modison Metals rose 0.48% after the company said that the company has signed a memorandum of understanding (MoU) with Ekaterinburg Non-Ferrous Processing Plant, Russia, Renova Group to float a joint venture company (JVC) in India. The JVC will jointly manufacture and sell with its technology, precious metal products for electronic and automobile industry. The announcement was made after market hours yesterday, 4 July 2016.
On macro front, Markit Economics said today, 5 July 2016 that the business activity in the Indian service sector increased at the second-slowest rate in the current 12-month period of growth in June. Underpinning this was a softer expansion in new work. Employment rose, but only fractionally, while outstanding business was up compared to May. A faster increase in input costs contrasted with a slowdown in charge inflation. Confidence waned, although remained positive. The seasonally adjusted Nikkei India Services Business Activity Index recorded 50.3 in June, its second-lowest reading in the current 12-month sequence of above-50 readings. The headline index was down from 51 in May, pointing to a slower pace of expansion that was marginal. The seasonally adjusted Nikkei India Composite PMI Output Index rose from 50.9 in May to 51.1 in June, but remained below its long-run average and pointed to a slight pace of expansion. June saw a softer rise in services new business, with growth easing to the slowest in 11 months.
Meanwhile, Environment minister Prakash Javadekar has been reportedly promoted to Cabinet rank in a crucial expansion of Prime Minister Narendra Modi's council of ministers today, 5 July 2016. Nineteen new ministers are also being sworn in. The new ministers have been chosen after an exhaustive vetting process based on a selection framework from the Prime Minister. He wanted "doers and performers" who can "deliver on his vision of development and priorities - gaon garib and kisan (village, the poor and the farmer)." A few ministers in PM Modi's council will have to resign to make way for the new entrants since constitutionally, the council can have only 82. It currently has 66 ministers including the Prime Minister.
Powered by Capital Market - Live News