Key benchmark indices edged higher in early trade tracking positive sentiment in Asian markets and overnight gains on Wall Street. At 9:18 IST, the barometer index, the S&P BSE Sensex was up 169.01 points or 0.63% at 27,168.73. The Sensex regained the psychologically important 27,000 level after closing tad below that level during the previous trading session. The gains for the Nifty 50 index were lower than those for the Sensex in percentage terms. The Nifty was currently up 38 points or 0.46% at 8,325.75.
In overseas stock markets, Asian stocks edged higher tracking overnight gains on Wall Street. In mainland China, the Shanghai Composite was currently up 0.18%. Latest data showed that the manufacturing momentum in the world's second largest economy skidded to a four-month low in June. China's official manufacturing Purchasing Managers' Index (PMI) came in at 50 last month, against 50.1 logged in May and April. In Japan, the Nikkei 225 Average was currently up 0.67%. The manufacturing sector in Japan continued to contract in June, albeit at a slower pace, the latest survey from Nikkei showed. Manufacturing PMI came in at 48.1 in June, up from May's 47.7. US stocks gained for the third day in a row yesterday, 30 June 2016, recovering from the post-Brexit sell-off.
Closer home, the broad market depicted strength. There were more than four gainers against every loser on BSE. 812 shares rose and 186 shares declined. A total of 35 shares were unchanged. The BSE Mid-Cap index was currently up 0.59%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.63%, matching the Sensex's gains in percentage terms.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 0.24%), HPCL (up 0.4%) and Indian Oil Corporation (IOCL) (up 1.68%) gained. IOCL yesterday, 30 June 2016, announced a decrease in the price of petrol and diesel with effect from the midnight of 30 June/1 July 2016. Petrol price was decreased by Rs 0.89 per litre and diesel price was decreased by Rs 0.49 a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 64.76 per litre and diesel costs Rs 54.70 a litre.
Aviaition stocks declined after Indian Oil Corporation (IOCL) yesterday, 30 June 2016, announced a hike in aviation turbine fuel (ATF) prices. InterGlobe Aviation (down 0.32%), Jet Airways (India) (down 0.67%) and SpiceJet (down 0.85%) edged lower. ATF price was hiked by 5.47% to 49,287.18 per kiloliter in Delhi for domestic airlines from midnight of 30 June/1 July 2016.
Jet fuel or ATF constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices.
Maruti Suzuki India (MSIL) was up 0.37% at Rs 4,200.50 after the company announced after market hours yesterday, 30 June 2016, that it signed a memorandum of understanding (MoU) with Government of Andhra Pradesh, to set up, manage and run Institute of Driving Training and Traffic Research at Venkatachalam village in Darsi, Prakasham district of the state.
The infrastructure spread across 20 acres of land will be provided by the Andhra Pradesh Government, while Maruti Suzuki will run and manage the institute. The facility to be built as per the MoRTH guidelines shall consist of an institute building, a hostel and training tracks will all required formation. The infrastructure is expected to be complete by 2018.
Set up under the public-private-partnership (PPP) model, this will be Maruti Suzuki's first IDTR in South India. Maruti Suzuki will undertake the training on lines of the other IDTRs including All Gujarat Institute of Driving, Technical Training and Research (AGIDTTR), Vadodara. The Company plans to collaborate with the various government departments like Tribal Development Department to promote road safety and driving as an employment opportunity among the tribal youth of Andhra Pradesh. The main focus is to make people employable hence additional training in personality, hygiene, courtesy and communication is imparted to the youth.
On the macro front, the output of eight core Industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) rose 2.8% in May 2016 over May 2015, data released by the government after market hours yesterday, 30 June 2016 showed.
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