A range bound movement was witnessed as key benchmark indices hovered in positive zone in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was up 35.33 points or 0.14% at 24,906.02. The 50-unit Nifty 50 index was currently up 13.80 points or 0.18% at 7,577.35. The Sensex was currently trading below the psychological 25,000 level. Earlier, it had briefly surpassed that level in morning trade.
In overseas stock markets, Asian stocks witnessed mixed trend. Chinese stocks edged lower after disappointing manufacturing data for January 2016. The Shanghai Composite index was currently off 2.96%. In Hong Kong, the Hang Seng index was currently off 0.74%. China's statistics bureau reported today, 1 February 2016, that the official manufacturing purchasing managers index fell to 49.4 in January from 49.7 in December, marking the lowest level since August 2012 and the sixth straight month of contraction.
Meanwhile, Japanese stocks extended a rally registered during the previous trading session on Friday, 29 January 2016, triggered by the Bank of Japan's surprise decision to cut interest rates to negative territory. The Nikkei Stock Average ended 1.98% higher.
US stocks closed sharply higher on Friday, 29 January 2016, amid a global equity rally following a surprise decision by the Bank of Japan to push a key interest rate into negative territory.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,494 shares rose and 919 shares declined. A total of 111 shares were unchanged. The BSE Mid-Cap index was currently up 0.64%. The BSE Small-Cap index was currently up 0.61%. Both these indices outperformed the Sensex.
Pharma stocks were mostly higher. Cadila Healthcare (up 4.36%), Glenmark Pharmaceuticals (up 2.96%), Cipla (up 2.83%), Lupin (up 1.41%), GlaxoSmithkline Pharmaceuticals (up 1.61%), Dr Reddy's Laboratories (up 0.17%), Strides Shasun (up 0.03%) and Alkem Laboratories (up 0.07%) edged higher. Aurobindo Pharma (down 2.7%), Ipca Laboratories (down 0.38%), Wockhardt (down 0.61%), Sun Pharmaceutical Industries (down 0.03%) and Divi's Laboratories (down 0.13%) edged lower.
Airline stocks edged higher after public sector oil marketing companies cut aviation turbine fuel (ATF) or jet fuel price by nearly 12% for February 2016. Jet Airways (India) (up 2.65%), SpiceJet (up 4.98%) and InterGlobe Aviation (up 3%) edged higher. ATF price in Delhi was reduced by Rs 4,765.50 per kilolitre (kl) or 11.94% to Rs 35,126.82 per kilolitre. The price cut is with effect from 1 February 2016. Jet fuel constitutes over 40% of an airline's operating costs.
ICICI Bank dropped 3.13% at Rs 222.90, with the stock extending losses registered in previous trading session triggered by the private sector bank reporting increase in bad loans in Q3 December 2015. The stock had declined 1.22% to settle at Rs 230.10 on Friday, 29 January 2016.
Marico rose 1.67% at Rs 225.80 after consolidated net profit rose 23.7% to Rs 197.81 crore on 7.6% rise in total income to Rs 1573.36 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 24% to Rs 294 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 30 January 2016.
Meanwhile, the outcome of a monthly survey showed that India's manufacturing sector returned to expansion mode in January 2016 as the industry recovered following the contraction seen at the end of calendar year 2015. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 51.1 in January 2016 from 49.1 in December 2015. A reading above 50 indicates expansion while one below points to contraction. Alongside a resumption of output at some firms impacted by December's flooding in Tamil Nadu, manufacturers also benefited from rising inflows of new business from domestic and export clients.
The Reserve Bank of India (RBI) is scheduled to announce its sixth bi-monthly monetary policy for the year 2015-16 at 11:00 IST tomorrow, 2 February 2016. In the fifth bi-monthly monetary policy on 1 December 2015, the RBI kept its benchmark interest rate viz. the repo rate unchanged at 6.75% and the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL).
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