The Sensex and the Nifty were trading near the flat line with a positive bias in afternoon trade. Gains were capped due to weak cues from other Asian stock markets. The Nifty once again slipped below 11,700 mark. At 13:29 IST, the S&P BSE Sensex, was up 50.49 points or 0.13% at 39,786.02. The Nifty 50 index was up 22.60 points or 0.19% at 11,684.45.
In broader market, the S&P BSE Mid-Cap index rose 1.24% and the S&P BSE Small-Cap index was up 0.27%.
The market breadth was negative. On the BSE, 892 shares rose and 1342 shares fell. A total of 152 shares were unchanged. In Nifty 50 index, 31 stocks advanced while 19 stocks declined.
Economy:
The headline seasonally adjusted IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years. The consumer goods sub-sector remained the brightest spot, although growth was sustained in intermediate goods and capital goods moved back into expansion.
"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business. Companies also benefited from subdued cost pressures, which enabled them to restrict increases in their fees to some extent. There was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," said Pollyanna de Lima, Principal Economist at IHS Markit.
Stocks in Spotlight:
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Nestle India (up 5.81%), Hindustan Unilever (up 5.15%), Asian Paints (up 4.99%), Britannia Industries (up 4.47%) and Bajaj Auto (up 4.40%) advanced.
Bharti Infratel (down 6.37%), Yes Bank (down 3.63%), TCS (down 2.55%), Infosys (down 1.70%) and State Bank of India (down 1.17%) declined.
Shares of Tata Motors were trading 2.47% lower at Rs 161.65. Tata Motors' auto sales in the domestic & international market, in January 2020 stood at 47,862 vehicles as against 58,185 units during January 2019, down 17.74% year-on-year (YoY). Total auto sales, however, registered a 2.04% rise from 46,903 units in December 2019. Total domestic sales declined 18% to 45,242 units in January 2020 as compared to 54,915 units in January 2019. Passenger vehicles segment saw sales decline by 22% to 13,894 units while the commercial vehicles sales witnessed 16% fall to 33,860 units in January 2020 over January 2019.
ITC fell 3.77% to Rs 210.60. In the Union Budget 2020, the central government hiked the excise duty on cigarettes and other tobacco products (except bidi).
Coal India rose 2.62% to Rs 178.25 after its total coal production in January 2020 stood at 63.11 million tonnes as compared to 57.21 million tonnes in January 2019, recording a rise of 10.3%. Coal offtake rose 6.9% to 56.05 million tonnes in January 2020 as against 52.44 million in January 2019.
Eicher Motors fell 1.38% to Rs 19774.95. The company's' unlisted subsidiary VE Commercial Vehicles (VECV) reported 6.1% decline in total sales to 5,544 units in January 2020 from 5,906 units in January 2019. Total exports slipped 18.1% to 517 units in January 2020 as against 631 units in January 2019. Total domestic sales dropped 5.9% to 4,871 units in January 2020 compared with 5,177 units in January 2020. Total Eicher trucks & buses sales fell 7.2% to 5,388 units in January 2020 as against 5,808 units in January 2019. Sales of Volvo Trucks surged 59.2% to 156 units in January 2020 compared with 98 units in January 2019.
Global Markets:
European markets opened in the green while Asian stocks were trading lower on Monday. This followed the sell-off on Wall Street on Friday amid concerns about the rapid spread of the coronavirus outbreak and its impact on the global economy.
The Shanghai Composite and the Shenzhen Component Index plummeted more than 8% on their first day of trading after an extended Lunar New Year holiday. The markets were closed since 24 January 2020. China's health officials said the death toll related to the coronavirus has risen to 361, while there are 17,205 confirmed cases.
The People's Bank of China (PBOC) said Sunday it would launch a 1.2 trillion yuan ($173 bln) reverse repurchase operation on Monday to maintain "reasonable and abundant liquidity" in the banking system, as well as a stable currency market, during the epidemic.
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