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Benchmark indices are holding to their gains following a broad-based rally with financials, select index heavyweights and auto stocks reacting to the sales data for the month of April leading the surge. Meanwhile, Asian markets too are trading firm on hopes of further stimulus from Chinese authorities after Chinese factory data showed further signs of weakness in the economy.
At 12:57PM, the 30-share Sensex was up 311 points at 27,321 and the 50-share Nifty was up 98 points at 8,279.
Among macro-economic cues, the Indian manufacturing economy recording a growth slowdown during April may hamper upward movement for the markets. Total new orders increased at a weaker pace and, as a consequence, companies reduced staffing levels and raised output to a lesser degree.
At 51.3 in April, down from 52.1 in March, the headline HSBC India Purchasing Managers’ Index (PMI) – a seasonally adjusted indicator designed to give an accurate overview of operating conditions in the manufacturing economy – pointed to a weaker improvement in operating conditions across the sector. Nonetheless, the headline index recorded above the crucial 50.0 threshold for the eighteenth successive month.
In the broader market, the BSE Midcap index up nearly 1% has underperformed while BSE Smallcap index, up 1.6% has performed better than the front-liners. Market breadth in BSE is positive with 1,799 advances against 666 declines.
Buzzing Stocks
All the 12 sectoral indices of BSE are trading higher. BSE Realty and Oil & Gas indices up 2.2% and 2% each are the top gainers followed by BSE Consumer Durables and Healthcare indices, up 2% and 1.8% each.
ONGC is the gainer and has gained nearly 6% on reports that the Union government has decided to scrap the subsidy sharing mechanism that has placed considerable pressure on the bottom-lines of public sector oil companies.
Among financials, housing finance major, HDFC has gained 2.5%, Its twin private sector lender HDFC Bank and public sector lender SBI are up 1.6% each.
FMCG majors, ITC and HUL are up 2.2% and 0.8% each.
Auto shares are moving in response to April sales numbers. M&M has gained over 4% after the company reported strong growth in tractor exports during April 2015 compared with the same month last year. Bajaj Auto has gained nearly 5%.
Maruti Suzuki has gained 1.4% after the company reported a healthy 30% year on year (yoy) rise in total sales in April 2015 at 111,748 units against 86,196 units in the corresponding period last year.
Tata Motors has reported a 7% increase in total sales at 36,205 vehicles in April compared with 33,962 units in the same period last year. However, the stock is trading lower by 1.6%.
Bharti Airtel has gained 1% Top four mobile carriers including Bharti Airtel have reduced roaming charges for their subscribers effective April 30, 2015.
BHEL has gained 1.5%. BHEL has successfully commissioned a 195 MW Thermal Unit in Bihar.
NTPC has gained 0.4%. According to media reports, NTPC will build India's biggest power plant with an annual generation capacity of 6,400 megawatt (Mw) in a joint venture with Jharkhand state utility.
