Indian equity benchmarks logged small gains in a volatile session of trade as gains triggered by strong global cues were almost offset by lower-than-expected GDP data. The barometer index, the S&P BSE Sensex, rose 46.70 points or 0.13% at 36,241, as per the provisional closing data. The Nifty 50 index rose 7 points or 0.06% at 10,883.75, as per the provisional closing data.
Domestic stocks opened on a firm note tracking upbeat Asian stocks and US index futures following a cease-fire on tariffs between Beijing and Washington over the weekend. Stocks held firm in morning trade. Key benchmark indices trimmed gains in mid-morning trade. Key indices erased intraday gains and sink in negative zone in early afternoon trade. Indices hit fresh intraday low in afternoon trade. Volatility struck bourses in mid-afternoon trade as the key indices once again regained positive zone. Stocks hovered in positive zone in late trade.
The S&P BSE Mid-Cap index rose 0.46%. The S&P BSE Small-Cap index rose 0.46%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1319 shares rose and 1264 shares fell. A total of 196 shares were unchanged.
Hindustan Unilever gained 4.64%. GlaxoSmithKline Consumer Healthcare rose 3.75%. The board of directors of Hindustan Unilever (HUL) today, 3 December 2018, approved a scheme of amalgamation between the company and GlaxoSmithKline Consumer Healthcare (GSK CH India) subject to obtaining requisite approvals from statutory authorities and shareholders. HUL has reached a definite agreement with GSK CH India in this regard. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. This transaction values the total business at Rs 31700 crore.
Following the issue of new HUL shares, Unilever's holding in HUL will be diluted from 67.2% to 61.9%. The merger includes the totality of operations within GSK CH India, including a consignment selling contract to distribute GSK CH India's over-the-counter and oral health products in India. The transaction is expected to be completed in one year subject to regulatory and shareholder approvals. The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable foods and refreshment (F&R) business in India by leveraging the mega trend of health and wellness.
Maruti Suzuki India rose 1.24%. The company's sales fell 0.7% to 153,539 units in November 2018 over November 2017. The announcement was made on Saturday, 1 December 2018.
Bajaj Auto rose 0.08%. The company's sales rose 25% to 4.06 lakh units in November 2018 over November 2017. The announcement was made on Saturday, 1 December 2018.
Hero MotoCorp fell 1.02%. The company's sales rose 0.82% to 610,252 units in November 2018 over November 2017. The announcement was made on Saturday, 1 December 2018.
Mahindra & Mahindra (M&M) lost 3.79%. The company's auto sales rose 17% to 45,101 units in November 2018 over November 2017. The announcement was made on Saturday, 1 December 2018.
M&M's Farm Equipment Sector (FES) announced its tractor sales numbers for November 2018. Domestic sales in November 2018 were at 25,159 units, as against 21,271 units during November 2017. Total tractor sales (domestic + exports) during November 2018 were at 25,949 units, as against 22,994 units for the same period last year. Exports for the month stood at 790 units. The announcement was made during market hours today, 3 December 2018.
Tata Motors rose 2.01%. The sales performance of Tata Motors commercial and passenger vehicles business in the domestic market, for the first time witnessed a drop of 4% at 50,470 units in November 2018 as against 52,464 units in November 2017, due to low consumer sentiments as a result of liquidity crisis in the industry, higher interest rates and rising fuel costs. The company said it will continue to focus on aggressive sales enhancement and provide better service to its customers in these challenging times. The announcement was made on Saturday, 1 December 2018.
On the macro front, manufacturing operating conditions in India strengthened for the third successive month in November, as healthier inflows of new orders encouraged companies to lift production and input buying to greater extents than in October, data released today, 3 December 2018 showed.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose for the third consecutive month in November to 54 from 53.1 in October. The latest figure signalled the strongest improvement in the health of the sector in almost one year.
India's gross domestic product (GDP) rose 7.1% in July-September, down from 8.2% in the previous quarter though it still marked a comforting uptick compared to the previous year's 6.3% reading in the same quarter. The manufacturing sector expanded 7.4% following 13.5% surge in the previous quarter while the agriculture sector grew 3.8% from 5.3% in the previous quarter. Trade, Hotel, Transport, Communication &Services related to Broadcasting rose 6.80%, almost matching the growth in previous quarter. Financial, Real Estate & Professional Services expanded 6.30%, easing slightly from a 6.52% in previous quarter. The data was released by the government after market hours on Friday, 30 November 2018.
The combined Index of Eight Core Industries stood at 134.8 in October, 2018, which was 4.8% higher as compared to the index of October, 2017. Its cumulative growth during April to October, 2018-19 was 5.4%. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). The data was released by the government after market hours on Friday, 30 November 2018.
Overseas, Asian and European stocks edged higher following a cease-fire on tariffs between Beijing and Washington at the Group of 20 meeting in Argentina over the weekend. Activity in China's factories grew slightly faster in November, a private gauge showed. The Caixin China manufacturing purchasing managers' index edged up to 50.2 in November from 50.1 in October, Caixin Media Co. and research firm Markit said Monday. The 50 level separates an expansion in manufacturing activity from a contraction.
Trading in US index futures indicated that the Dow could surge 512 points at the opening bell today, 3 December 2018. President Donald Trump and Chinese President Xi Jinping approved the deal on Saturday in Buenos Aires. It offers Beijing a reprieve from a planned increase in tariffs, scheduled for 1 January 2019, on $200 billion in Chinese goods exports to the US Tariffs were scheduled to rise to 25% from 10%. The postponement relies on progress in talks that both sides aim to complete in the next 90 days covering broader issues, including intellectual property protection.
US stocks ended higher Friday, as investors turned positive on the outlook for trade ahead of a meeting between the American and Chinese presidents.
On the data front, the MNI Chicago business barometer jumped 8 points to 66.4 in November to a 4 year high, ending a streak of three straight declines. The survey is often seen as a bellwether for the broader US economy.
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