Key indices were trading with small gains after reversing losses in mid-afternoon trade amid subdued global stocks. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 25.76 points or 0.08% at 32,263.64. The Nifty 50 index was up 26.45 points or 0.26% at 10,040.10. The movement of indices was restricted within a narrow range around the flat line so far. Caution prevailed in global stocks ahead of US nonfarm payroll data for July, which is due later in the global day.
Key indices had opened slightly higher on firm Asian stocks but soon dropped in the red. Stocks swung between gains and losses near the flat line in morning trade. Market languished in the red after extending losses in mid-morning trade. Indices reversed losses in mid-afternoon trade.
The S&P BSE Mid-Cap index rose 0.18%, outperforming the Sensex. The S&P BSE Small-Cap index gained 0.04%, underperformed the Sensex.
However, the breadth, indicating the overall health of the market, was negative. On the BSE, 1,402 shares fell and 1,062 shares rose. A total of 162 shares were unchanged.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (down 0.97%), L&T (down 0.14%), and Siemens (down 1.34%) declined. BEML (up 2.11%), Havells India (up 0.64%), and Thermax (up 0.32%) gained.
Fertiliser shares rose on prospects of better demand after the monsoon this year so far was normal. Chambal Fertilisers & Chemicals (up 2.9%), Rashtriya Chemicals and Fertilisers (up 7.86%), Fertilisers & Chemicals Travancore (up 1.42%), National Fertilizers (up 2.8%), Zuari Agro Chemicals (up 0.14%), Tata Chemicals (up 0.12%), Gujarat State Fertilizers & Chemicals (up 1.12%) and Deepak Fertilisers & Petrochemicals Corporation (up 0.01%), edged higher.
Mahindra & Mahindra (M&M) shed 0.96% after the company's net profit fell 19.79% to Rs 765.96 crore on 3.12% rise in total income to Rs 12540.20 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 4 August 2017.
Automotive business in Q1 June 2017 was impacted due to the impending transition to GST from 1 July 2017 with passenger vehicles sales being adversely impacted in anticipation of price reduction due to GST.
Separately, M&M informed that the loans & investment committee of directors approved selling up to 96.66 lakh equity shares, or 13.74% equity of the company in Mahindra Logistics (MLL), a subsidiary of M&M, as part of the proposed initial public offering of MLL. The announcement was made after market hours yesterday, 3 August 2017.
Future Retail gained 0.93% to Rs 402 after a large bulk deal of 17.18 lakh shares was executed on the scrip at Rs 401.75 per share at 13:34 IST on BSE.
India Meteorological Department said that actual cumulative area weighted rainfall (mm) for the country as a whole till 2 August 2017 equaled normal rainfall.
Meanwhile, the Banking Regulation (Amendment) Bill 2017 was passed by the lower house of the parliament yesterday, 3 August 2017. It will replace the Non-Performing Assets Ordinance, which came into effect earlier this year. The measure allows the RBI to initiate insolvency resolution process on specific stressed-assets. The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed-asset resolution.
Overseas, European stocks edged lower as investors monitored earnings reports. The Bank of England (BOE) yesterday, 3 August 2017, held interest rates steady at 0.25%, as expected, while largely sticking to its previous assumptions for growth and inflation over the three-year forecast horizon. The Monetary Policy Committee (MPC) voted by a majority of 6-2 to keep rates at record low levels in August. Meantime, the UK's central bank maintained stock levels of government bonds and corporate bonds at 435 billion and 10 billion respectively.
The closely watched Ifo business-sentiment index rose last month to its highest level since German reunification. Germany's economics ministry said that total orders for the important manufacturing sector increased by 1% compared with May, adjusted for seasonal swings and calendar effects.
Asian stocks were mixed ahead of the US employment report.
In US, Dow Jones Industrials Average managed to post slight gains, staying above the 22,000 level and hitting fresh record high while, the S&P 500 index and Nasdaq Composite index closed lower weighed down by Amazon.com, Apple and other top-shelf technology stocks yesterday, 3 August 2017.
Labor Department data showed weekly jobless claims fell last week, pointing to a tightening labour market, while a report from the Institute for Supply Management showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. US employment report for July is due later during the global day.
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