Amid a divergent trend among various index constituents, key benchmark indices traded near the flat line in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 11.50 points or 0.05% at 25,250.66. The Nifty 50 index was currently down 0.90 points or 0.01% at 7,734.60. The Nifty moved into positive zone from negative zone for a brief period in mid-afternoon trade. The Sensex has remained in red so far during the trading session after opening with a downward gap.
The Nifty rose 1.55 points or 0.02% at the day's high of 7,737.05 in mid-afternoon trade. The index lost 57.15 points or 0.73% at the day's low of 7,678.35 in early trade, its lowest level since 12 April 2016. The Sensex lost 1.73 points at the day's high of 25,260.48 in mid-afternoon trade. The barometer index lost 204.28 points or 0.8% at the day's low of 25,057.93 in early trade, its lowest level since 12 April 2016.
In overseas stock markets, Asian and European stocks edged lower as investors turned cautious before the release of the influential US monthly non-farm payroll data for more clues about the interest rate outlook in the world's largest economy. Chinese stocks led decline in Asian equities. In mainland China, the Shanghai Composite ended 2.82% lower. In Hong Kong, the Hang Seng index ended 1.66% lower.
Most US stocks edged lower yesterday, 5 May 2016, as investors awaited the key non-farm payrolls data. The US government will release the non-farm payroll data for April 2016 later in the global day today, 6 May 2016. The non-farm payroll data could provide more clues about the timing and quantum of future interest rate increases from the US Federal Reserve. The job data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,287 shares declined and 1,084 shares rose. A total of 160 shares were unchanged. The BSE Mid-Cap index was currently up 0.54%. The BSE Small-Cap index was currently up 0.02%. Both these indices outperformed the Sensex.
Capital goods stocks declined. Alstom T&D India (down 1.64%), BEML (down 1.34%), L&T (down 0.78%), Crompton Greaves (down 0.59%), Praj Industries (down 0.44%), Bharat Electronics (down 0.34%) and ABB India (down 0.02%) edged lower. Havells India (up 1.62%), Thermax (up 1.04%) and Siemens (up 0.07%) edged higher.
Also Read
Bharat Heavy Electricals (Bhel) was down 0.16%. The company during market hours today, 6 May 2016, announced that it has added another coal-based power plant to the grid by successfully commissioning a 500 megawatts (MW) thermal unit in Jharkhand. The unit has been commissioned by Bhel at Bokaro Thermal Power-A station of Damodar Valley Corporation (DVC) in Jharkhand. Bhel has executed the contract for setting up the 500 MW coal-based unit on engineering, procurement and construction (EPC) basis.
Pharma stocks dropped. Wockhardt (down 2.85%), Dr Reddy's Laboratories (down 2%), Divi's Laboratories (down 2.11%), Cadila Healthcare (down 1.44%), Lupin (down 1.23%), Cipla (down 0.96%), Strides Shasun (down 1.05%), Ipca Laboratories (down 0.45%) and Sun Pharmaceutical Industries (down 0.46%) edged lower. Glenmark Pharmaceuticals (up 0.53%), Alkem Laboratories (up 0.61%) and GlaxoSmithkline Pharmaceuticals (up 0.07%) edged higher.
Aurobindo Pharma was off 0.52% at Rs 801. The stock was volatile. The stock hit a high of Rs 807 and a low of Rs 795.15 so far during the day. The company during market hours today, 6 May 2016, announced that it has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Fenofibrate tablets, 48 mg and 145 mg. This product is expected to be launched in the US in Q1 June 2016. The drug is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tricor tablets of AbbVie Inc.
Fenofibrate tablet is used to treat high level of cholesterol and triglyceride in the blood. The approved product has an estimated market size of $412 million in the US for the twelve months ended March 2016, according to IMS.
Eicher Motors rose 2.35% at Rs 20,150 in the wake of the company's announcement of strong results for the quarter ended 31 March 2016 and management commentary of positive outlook for the motorcycle business. The stock had fallen 0.3% to settle at Rs 19,687.45 yesterday, 5 May 2016, after the company announced the results during trading hours. The company's consolidated net profit rose 71.3% to Rs 334.50 crore on 46.6% growth in total income from operations to Rs 3764.90 crore in the quarter ended 31 March 2016 over the quarter ended 31 March 2015.
At the time of announcement of the results, Eicher Motors' Managing Director & CEO Siddhartha Lal said that the immediate business outlook for the Royal Enfield motorcycles business remains strong. Royal Enfield will invest Rs 600 crore during the year ending 31 March 2017 (FY 2017) towards product development, enhancing manufacturing capacity and market development activities across geographies and for setting up two technical centres - one in Leicestershire, UK and another in Chennai, India.
Index heavyweight and cigarette major ITC trimmed losses triggered by the company's announcement of temporary closure of manufacturing of cigarettes at all its cigarette manufacturing units. The stock was currently off 0.03% at Rs 317.45. The stock hit a high of Rs 319.35 and a low of Rs 306 so far during the day. The company has announced temporary closure of its cigarette factories from 4 May 2016 until it is in a position to comply with the rules on pictorial warnings on cigarette packs. The announcement was made after market hours yesterday, 5 May 2016. The Supreme Court on 4 May 2016 passed an order transferring to the Karnataka High Court all writ petitions pending in various courts challenging the rules prescribing 85% pictorial warnings on cigarette packs. The Supreme Court observed that all parties should endeavour to follow the existing rules on pictorial warnings on cigarette packs.
The government had notified that cigarette companies have to carry warning over 85% of the pack from 1 April 2016, sharply higher than earlier 40% of the pack.
Hindustan Composites surged 19.77% at Rs 1,104 after net profit jumped 134.57% to Rs 18.86 crore on 68.31% rise in total income to Rs 68.37 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 5 May 2016.
Powered by Capital Market - Live News