Key benchmark indices continue to trade firm in positive zone in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex was up 215.92 points or 0.8% at 27,215.64. The Sensex was currently trading above the psychologically important 27,000 level after regaining that level in early trade. The Nifty 50 index was currently up 62.80 points or 0.76% at 8,350.55. The market sentiment was boosted by data showing further improvement in India's manufacturing sector last month. Strong inflow of funds from foreign portfolio investors into the domestic markets during the previous trading session also boosted sentiment. Gains in Asian stocks also aided the upmove on the domestic bourses.
The outcome of a monthly survey showed that manufacturing growth in India pointed to a further improvement last month supported by a stronger increase in new business inflows. The Nikkei India manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in June, from May's reading of 50.7.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1107.42 crore yesterday, 30 June 2016, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks edged higher tracking overnight gains on Wall Street. In mainland China, the Shanghai Composite was currently up 0.06%. Latest data showed that the manufacturing momentum in the world's second largest economy skidded to a four-month low in June. China's official manufacturing Purchasing Managers' Index (PMI) came in at 50 last month, against 50.1 logged in May and April. In Japan, the Nikkei 225 Average ended 0.68% higher. The manufacturing sector in Japan continued to contract in June, albeit at a slower pace, the latest survey from Nikkei showed. Manufacturing PMI came in at 48.1 in June, up from May's 47.7. US stocks gained for the third day in a row yesterday, 30 June 2016, recovering from the post-Brexit sell-off.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,528 shares rose and 849 shares declined. A total of 122 shares were unchanged. The BSE Mid-Cap index was currently up 1.32%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.
Metal and mining stocks extended previous trading session's gains triggered by the Union Cabinet approving the National Mineral Exploration Policy (NMEP) for accelerating the exploration activity in the country through enhanced participation of the private sector. Jindal Steel & Power (up 6.35%), Steel Authority of India (up 2.77%), Vedanta (up 3.34%), Tata Steel (up 2.33%), Hindustan Copper (up 1.22%), Hindalco Industries (up 2.08%), NMDC (up 0.85%), National Aluminium Company (up 0.47%) and JSW Steel (up 0.36%) rose. Hindustan Zinc (down 0.89%) edged lower.
Meanwhile, copper prices declined in global commodities markets. High Grade Copper for September 2016 delivery was currently down 0.55% at $2.1835 per pound on the COMEX.
Also Read
IT stocks edged higher. Tech Mahindra (up 1.65%), Oracle Financial Services Software (up 0.27%), Wipro (up 0.88%) and HCL Technologies (up 0.38%) edged higher. TCS (down 0.73%) edged lower.
Index heavyweight and software major Infosys was up 0.47% at Rs 1,176.20. The stock hit a high of Rs 1,180.55 and a low of Rs 1,173 so far during the day.
Index heavyweight HDFC Bank was up 0.65% at Rs 1,183.60 after the bank said it has launched SM Bank, India's first full-fledged digital banking service for small-and medium enterprises (SME). This will allow clients to access a complete suite of services instantly and round-the-clock on the device of their choice, be it a desktop, laptop, tablet or mobile, HDFC Bank said. The announcement was made during market hours today, 1 July 2016.
Equitas Holdings rose 3.72% at Rs 184.15 after the company announced that it has received licence from the Reserve Bank of India (RBI) to carry on the small finance bank operations in India. The announcement was made before market hours today, 1 July 2016. The RBI has issued licence dated 30 June 2016 to Equitas Small Finance Bank to carry on the Small Finance Bank (SFB) operations in India. Equitas Holdings had on 16 June 2016 announced that the Madras High Court had approved amalgamation of Equitas Micro Finance and Equitas Housing Finance with Equitas Finance from effective date ie the working day immediately preceding the date of commencement of business of SFB. On amalgamation coming into effect, Equitas Finance will be named as Equitas Small Finance Bank which will carry on the business of small finance bank, Equitas Holdings said. Post receipt of RBI license and prior to commencement of SFB business, there are a few other approvals to be obtained from various departments of RBI and other agencies. On receipt of these approvals, Equitas Small Finance Bank will commence its operations of small finance bank, the company said.
Data released by the government after market hours yesterday, 30 June 2016 showed that the output of eight core Industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) rose 2.8% in May 2016 over May 2015.
Powered by Capital Market - Live News