Key indices traded with small gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 36.51 points or 0.11% at 32,551.45. The Nifty 50 index rose 21.75 points or 0.22% at 10,098.85. Firm cues from global stocks supported gains on the bourses. However, private survey showing Indian manufacturing activity contracting in July kept gains under check.
After opening with a positive bias on firm Asian stocks, key indices traded in a narrow range in positive terrain till morning trade. Indices dropped into the negative terrain in mid-morning trade. Later, indices recovered and swung between gains and losses near the flat line.
The S&P BSE Mid-Cap index rose 0.38%, outperforming the Sensex. The S&P BSE Small-Cap index declined 0.1%. The decline in this index was higher than the Sensex's decline in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,511 shares fell and 1,024 shares rose. A total of 168 shares were unchanged.
Most pharma stocks gained. Sun Pharmaceutical Industries (up 1%), Aurobindo Pharma (up 2.68%), Cipla (up 0.24%), Wockhardt (up 0.21%), Dr Reddy's Laboratories (up 1.85%), and Glenmark Pharmaceuticals (up 0.42%) gained. Lupin (down 0.78%), Cadila Healthcare (down 0.33%) and Divi's Laboratories (down 0.3%) declined.
Shares of power generation and power distribution companies edged lower. GVK Power & Infrastructure (down 1.01%), NHPC (down 0.99%), NTPC (down 0.01%), Adani Power (down 0.3%), and Reliance Infrastructure (down 0.56%) declined. Torrent Power (up 0.77%) and Tata Power Company (up 0.31%) rose.
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Reliance Power fell 2.1% after consolidated net profit declined 32.20% to Rs 230.85 crore on 1.62% decline in net sales to Rs 2635.24 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 31 July 2017.
Power Grid Corporation of India rose 0.81% ahead of its Q1 results today, 1 August 2017.
Shares of Coal India rose 1.51%.
Mahindra & Mahindra (M&M) rose 1.23% after the company announced growth in auto and tractor sales in July. Total auto sales rose 6% to 41,747 units in July 2017 over July 2016. Domestic sales rose 13% to 39,762 units in July 2017 over July 2016. Exports tumbled 52% to 1,985 units in July 2017 over July 2016.
Total tractor sales gained 7% to 18,832 units in July 2017 over July 2016. Domestic sales rose 7% to 17,682 units in July 2017 over July 2016. Exports rose 4% to 1,150 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.
Bharat Electronics rose 1.12% after net profit surged 247.24% to Rs 125.32 crore on 98.36% growth in net sales to Rs 1694.55 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 31 July 2017.
On the macroeconomic data front, Markit Economics said today, 1 August 2017 that the introduction of the goods & services tax (GST) weighed heavily on the Indian manufacturing industry in July. New orders and output decreased for the first time since the demonetisation-related downturn recorded in December last year, with rates of contraction the steepest since February 2009 in both cases. At 47.9 in July, down from 50.9 in June, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) was at its lowest mark since February 2009 and highlighted the first deterioration in business conditions in 2017 so far.
Meanwhile, the combined index of eight core industries, comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 0.4% in June 2017 over June 2016. Its cumulative growth during April to June, 2017-18 was 2.4%.
GDP growth rate of India will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth, reported a study conducted by a leading research agency, Moody's. According to the US-based agency estimates, the economy will grow 7.5% in 2016-17 and 7.7% in 2017-18. While it forecasted that the economic growth will gradually increase to around 8% over the next 3-4 years.
Overseas, European stocks gained as factories in the euro zone started the second half with buoyant growth, which although slightly weaker than previously estimated was broad-based and appears to be sustainable, a survey showed. IHS Markit's final manufacturing Purchasing Managers' Index dipped to 56.6 from June's six-year high of 57.4, slightly down from a flash estimate of 56.8.
Most Asian stocks gained on rising confidence in global growth. Growth in China's manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales. The Caixin/Markit Manufacturing PMI rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June.
Japan's manufacturing activity grew in July at the slowest pace in eight months as export demand weakened, a private survey showed. The Markit/Nikkei Japan Final Manufacturing PMI dipped to 52.1 in July on a seasonally adjusted basis, slightly weaker than a preliminary reading of 52.2 and a final 52.4 in the previous month.
In US, the Dow Jones Industrials Average finished at an all-time high yesterday, 31 July 2017, but the broader market's gains were hobbled by losses in the technology sector.
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