Key benchmark indices were trading with small gains in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex was up 52.70 points or 0.19% to 27,982.91. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 31.30 points or 0.36% at 8,657. The Sensex was currently trading below the psychologically important 28,000 level after regaining that mark in early afternoon trade. Data released today, 1 November 2016 showing that the headline seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) has climbed to a 22-month peak in October 2016 boosted sentiment on the domestic bourses.
The market breadth indicating the overall health of the market was positive. On BSE, 1,523 shares rose and 1,174 shares fell. A total of 108 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.23%, underperforming the Sensex.
Most capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 2.63%), Havells India (up 0.38%), ABB India (up 0.01%), Bharat Electronics (up 0.26%), and L&T (up 0.01%) gained. Thermax (down 0.19%) and Siemens (down 0.92%) declined.
Shares of most power generation and power distribution companies gained. Torrent Power (up 0.58%), NTPC (up 1.95%), Adani Power (up 0.18%), Power Grid Corporation of India (up 2.23%), Reliance Infrastructure (up 0.12%) and Reliance Power (up 0.53%) gained. NHPC (down 0.5%), and Tata Power Company (down 0.26%) declined.
Shares of state run coal mining major Coal India fell 0.06% to Rs 325.80. The stock hit high of Rs 328.40 and low of Rs 323.35 so far during the day. Coal India announced during market hours today, 1 November 2016 that a supplementary joint venture agreement was signed between Coal India (CIL), NTPC, Indian Oil Corporation (IOCL), Fertiliser Corporation of India (FCIL) and Hindustan Fertilizers Corporation of India (HFCL). In the joint venture, CIL, NTPC and IOCL, each will hold 29.67% shares and FCIL & HFCL together will hold remaining 10.99% shares. On 16 May 2016, CIL and NTPC had signed JV agreement for revival of Sindhri and Gorakhpur units of FCIL. Later, IOCL, FCIL and HFCL joined in the joint venture. It has also been decided to revive the Barauni fertiliser unit of HFCL.
BGR Energy Systems jumped 6.11% after the company said it won a Rs 2600 crore contract from Tamilnadu Generation and Distribution Corporation for North Chennai thermal power project. The announcement was made during trading hours today, 1 November 2016. The company said it won the Balance of Plant (BOP) contract from Tamilnadu Generation and Distribution Corporation (TANGEDCO) for 800 megawatts (MW) North Chennai Thermal Power Project Stage III. BGR Energy secured this contract in an International competitive bidding which witnessed stiff competition. The value of the contract is Rs 2600 crore. The contract completion period is 36 months from the date of award. The contract is for design, engineering, manufacturing, fabrication, assembly, inspection, testing, transportation, erection, testing and commissioning of the balance of plant mechanical, electrical and control & instrumentation works including associated civil works for establishment of coal based 800 MW North Chennai Supercritical Thermal Power Project Stage-III in the premises of existing NCTPS at Ennore & Puzhudhivakkam Village, Thiruvallur District, Tamil Nadu. Including this order, BGR Energy carries over an order book of Rs 7429 crore.
Ashok Leyland lost 0.38%. The company said its total sales grew 28% to 12,533 units in October 2016 over October 2015. The company announced the monthly sales volume data during market hours today, 1 November 2016. The company's sales of light commercial vehicles (LCV) rose 13% to 2,959 units in October 2016 over October 2015. Sales of medium & heavy commercial vehicles (M&HCV) surged 33% to 9,574 units in October 2016 over October 2015.
Among macro economic data, data released by Markit Economics today, 1 November 2016 indicated that the headline seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) climbed to a 22-month peak to 54.4 in October from 52.1 in September supported by stronger contributions from three of its five sub-components - new orders, output and stocks of purchases. The latest reading was indicative of a robust improvement in manufacturing business conditions that was in line with the long-run series average, Markit Economics said.
The growth in the Index of Eight Core Industries stood at 5% in September 2016, stronger than the 3.2% growth seen in August, data released by the government yesterday, 31 October 2016 showed. The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP).
In overseas stock markets, Chinese stocks settled higher after the release of encouraging purchasing managers index data from China. Other Asian stocks were trading mixed. China's official manufacturing PMI rose to 51.2 in October from 50.4 in September, adding to signs that the world's second-largest economy is stabilizing. China's official non-manufacturing purchasing managers index, a measure of activity outside factory gates, edged up to 54 in October from 53.7 in September. The Caixin manufacturing PMI for China was 51.2 in October, up from 50.1 in September. Japan's central bank largely held fire in a policy update today, 1 November 2016. The Bank of Japan (BOJ) said it would keep its deposit rate steady at -0.1%, and would continue to target a zero yield for 10-year Japan government bonds. Its only notable move was to push back the timeline for achieving 2% inflation by one year, to fiscal 2018.
US stocks closed lower yesterday, 31 October 2016 as stronger-than-expected consumer spending data underlined the view that the economy is growing at a steady pace, while a drop in oil prices and election uncertainty weighed on the minds of investors. The Federal Open Market Committee (FOMC)'s two-day meet on monetary policy will conclude tomorrow, 2 November 2016. FOMC in its September meet had kept policy rate unchanged.
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