Key benchmark indices hovered near the flat line in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was up 33.05 points or 0.12% at 28,485.22. The Nifty 50 index was currently up 9.35 points or 0.11% at 8,795.55. The market breadth indicating the overall health of the market was negative. On BSE, 1,312 shares fell and 1,164 shares rose. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently up 0.15%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.11%, underperforming the Sensex.
In overseas stock markets, European stocks edged higher on rebound in crude oil prices after registering sharp losses during the previous trading session. Asian stocks were mixed as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.
US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.
Telecom stocks declined sharply after Reliance Industries' (RIL) Chairman Mukesh Ambani reportedly announced free voice calls and Rs 50 per GB 4G data plan for the company's telecom arm Reliance Jio Infocomm (Jio) customers. Idea Cellular (down 8.18%), Bharti Airtel (down 6.51%) and Reliance Communications (down 3.8%) declined. Shares of Bharti Airtel's telecom tower arm Bharti Infratel were down 1.18%. All telecom operators currently charge for voice calls, while 4G data tariffs are as high as Rs 250 per GB, reports suggested. RIL's Annual General Meeting (AGM) is in progress today, 1 September 2016.
Shares of index heavyweight RIL were down 0.66% at Rs 1,051. The stock hit a high of Rs 1,072.55 and a low of Rs 1,047.50 so far during the day.
Shares of aviation firms edged higher after reduction in aviation turbine fuel (ATF) prices. Jet Airways (India) (up 0.84%), SpiceJet (up 0.59%) and InterGlobe Aviation (up 0.33%) rose. ATF price was decreased by 3.8% to Rs 45,411.18 per kilo litre in Delhi, with corresponding price revision in other states. The price change was applicable from midnight of 31 August 2016. ATF rates vary at different airports because of differential local sales tax or value-added tax (VAT). This is second consecutive ATF price cut. Earlier on 1 August 2016, ATF prices were reduced by 4.22% in Delhi. Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines. State-run oil marketing companies revise jet fuel prices on the last day of the month based on the average imported oil price in that month.
Dilip Buildcon (DBL) gained 1.24% at Rs 239.95 after the company said that it was announced as lowest bidder for a road project in West Bengal by National Highways Authority of India (NHAI). DBL announced that NHAI has declared the company as the lowest bidder for four laning of NH-6 from Chichra to Kharagpur in West Bengal under engineering, procurement and construction (EPC) mode at a project cost of Rs 613.08 crore having length of 55.52 kilometres and completion period of 30 months. This road project is adjoining to the existing project, DBL said. The announcement was made during market hours today, 1 September 2016.
On the macro front, the outcome of a monthly survey released today, 1 September 2016 showed that India's manufacturing sector showed a solid improvement last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) showed a solid improvement in the health of the sector in August, climbing to a 13-month high of 52.6, from July's reading of 51.8. Indian manufacturers enjoyed a solid improvement in operating conditions during August. With demand from the domestic and external markets picking up, companies raised output accordingly. Firms recorded an easing in cost inflation during the month, which in turn resulted in a softer overall increase in factory gate charges.
Meanwhile, India's Gross Domestic Product (GDP) growth slowed down to 7.1% in Q1 June 2016, as against 7.9% in Q4 March 2016 and 7.5% increase in Q1 June 2015.
More From This Section
Another data showed that the index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015. Cumulative eight core infrastructure sector growth stood at 4.9% in the four months period from April to July 2016. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 38% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.
Powered by Capital Market - Live News