A range bound movement was witnessed as key benchmark indices hovered in positive zone in mid-morning trade. The broad market depicted strength. There were more than two gainers against every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 76.59 points or 0.27% at 28,191.15. The BSE Small-Cap index was up 1.1%, outperforming the Sensex. Meanwhile, a further reduction in diesel prices announced by state-run oil marketing companies on Friday, 31 July 2015, will reduce fuel price inflation. In the global commodities market, Brent crude oil prices edged lower on worries of oversupply as OPEC pumped at record levels in July, while weak China data stoked concerns about slower growth at the world's second largest oil consumer. Decline in global crude oil prices augur well for India.
Shares of small car maker Maruti Suzuki India scaled record high after declaring good vehicle sales in July 2015. Mahindra & Mahindra (M&M) slipped after reporting fall in tractor and auto sales in July 2015. Hero MotoCorp fell after announcing fall in sales in July 2015. Interest rate sensitive realty stocks gained ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy review scheduled at 11:00 IST tomorrow, 4 August 2015.
Indian manufacturing sector improved further in July 2015, according to a monthly survey released by Markit Economics today, 3 August 2015.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than a week in morning trade as these two key benchmark indices extended initial gains.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 277.77 crore during the previous trading session on Friday, 31 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1021.34 crore on Friday, 31 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower amid signs of a deepening slowdown in China's economy, the world's second-largest economy. Energy stocks led decline in US market during the previous trading session on Friday, 31 July 2015, after two energy giants Exxon Mobil and Chevron reported decline in their earnings.
At 11:18 IST, the S&P BSE Sensex was up 76.59 points or 0.27% at 28,191.15. The index gained 107.82 points at the day's high of 28,222.38 in morning trade, its highest level since 24 July 2015. The index fell 43.19 points at the day's low of 28,071.37 in early trade.
The CNX Nifty was up 17.30 points or 0.2% at 8,550.15. The index hit a high of 8,562.30 in intraday trade, its highest level since 24 July 2015. The index hit a low of 8,508.10 in intraday trade.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,649 shares gained and 747 shares fell. A total of 83 shares were unchanged.
The BSE Mid-Cap index was up 105.16 points or 0.93% at 11,378.18. The BSE Small-Cap index was up 130.52 points or 1.1% at 11,961.32. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1525 crore by 11:15 IST, compared with turnover of Rs 997 crore by 10:15 IST.
Maruti Suzuki India advanced 2.13% to Rs 4,422.55. The stock hit an intraday high of Rs 4,430.95 in intraday trade so far, which was also a record high for the stock. Maruti Suzuki India's total vehicle sales rose 20.1% to 1.21 lakh units in July 2015 over July 2014. The announcement of July 2015 sales figures was made on Saturday, 1 August 2015.
Maruti Suzuki India's total domestic sales rose 22.5% to 1.10 lakh units in July 2015 over July 2014. Exports rose 0.2% to 11,307 units in July 2015 over July 2014.
Mahindra & Mahindra (M&M) shed 1.26%. M&M on Saturday, 1 August 2015, said that its total tractor sales dropped 11% to 15,460 units in July 2015 over July 2014. Domestic tractor sales fell 13% to 14,273 units in July 2015 over July 2014. Exports rose 15% to 1,187 units in July 2015 over July 2014.
Separately, M&M on Saturday, 1 August 2015, said that its total auto sales fell 3% to 34,652 units in July 2015 over July 2014. Total domestic sales dropped 6% to 31,087 units in July 2015 over July 2014. Total exports rose 41% to 3,565 units in July 2015 over July 2014.
Tata Motors rose 2.21%. Tata Motors said on Saturday, 1 August 2015, that the company continued to witness strong year-on-year growth in certain key segments in July 2015, with passenger cars (excluding UV's), M&HCV and Exports, growing by 27%, 21% and 16%, respectively. Total sales of Tata Motors passenger and commercial vehicles (including exports) rose 1% to 40,154 vehicles in July 2015 over July 2014. The domestic sale of Tata commercial and passenger vehicles fell 1% to 35,076 vehicles in July 2015 over July 2014. Tata Motors' total exports rose 16% to 5,078 units in July 2015 over July 2014.
Bajaj Auto shed 0.42%. Bajaj Auto during market hours today, 3 August 2015 reported 3% rise in total sales to 3.30 lakh units in July 2015 over July 2014. Bajaj Auto's motorcycle sales rose 5% to 2.82 lakh units in July 2015 over July 2014. Commercial vehicles sales fell 7% to 47,798 units in July 2015 over July 2014. Exports fell 3% to 1.64 lakh units in July 2015 over July 2014.
Hero MotoCorp fell 2.29%. Hero MotoCorp on Saturday, 1 August 2015, said that its total two-wheeler sales dropped 7.93% to 4.87 lakh units in July 2015 over July 2014. The retail sales of the company continue to be better than dispatches. The industry expects the good monsoon and the oncoming festive season to revive sentiments and bring buoyancy in the market, Hero MotoCorp said.
Hero MotoCorp recently introduced two new motorcyles - the 150cc Xtreme Sports and 100cc Passion PRO, both of which have received very positive response from customers across the country, the company said. Hero MotoCorp said it is also gearing up to launch more new products in the months leading up to the festive season.
Interest rate sensitive realty stocks gained ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy review scheduled at 11:00 IST tomorrow, 4 August 2015. Purchases of both residential and commercial property are largely driven by finance. DLF (up 1.39%), Indiabulls Real Estate (up 1.27%), Housing Development and Infrastructure (up 1.16%), D B Realty (up 0.4%), Unitech (up 4.48%), Sobha (up 1.69%), Godrej Properties (up 1.23%) and Parsvnath Developers (up 0.52%) rose. Oberoi Realty shed 0.82%.
Meanwhile, a further reduction in diesel prices announced by state-run oil marketing companies on Friday, 31 July 2015, will reduce fuel price inflation. Diesel is a key transportation fuel. Indian Oil Corporation (IOCL) on Friday, 31 July 2015, announced reduction in petrol and diesel prices with effect from 1 August 2015. The retail selling price of diesel was reduced by Rs 3.60 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi has become Rs 46.12 per litre. The retail selling price of petrol was reduced by Rs 2.43 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of petrol in Delhi has become Rs 64.47 per litre.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on worries of oversupply as the Organization of the Petroleum Exporting Countries (OPEC) pumped at record levels in July, while weak Chinese data stoked concerns about slower growth at the world's second largest oil consumer. Brent for September settlement was currently off 38 cents at $51.83 a barrel. The contract had fallen $1.1 a barrel or 2.06% to settle at $52.21 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, the outcome of a monthly survey today, 3 August 2015, showed that manufacturing business conditions across India improved further in July 2015. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) printed a six-month high of 52.7 in July 2015, up from 51.3 in June 2015. Underpinning the rise in production levels was a sharper increase in new business inflows. Growth of new orders gathered pace across the three broad areas of the manufacturing economy. Anecdotal evidence highlighted stronger demand from both domestic and foreign clients. Reflecting the rebound in new orders, Indian manufacturers raised their buying levels in July. The rate of expansion was marked and faster than in June.
Despite the uptick in growth, Indian manufacturers continued to cut workforce numbers in July. Nonetheless, the rate of job shedding was only marginal as around 96% of panellists reported no change in employment from the levels recorded in the prior month. Purchase prices for Indian manufacturers rose further in July. Despite quickening since June, the rate of inflation was only marginal and well below the series long-run trend. Selling prices were unchanged on average, with companies highlighting efforts to secure new business.
Meanwhile, the outcome of Reserve Bank of India's (RBI)'s third bi-monthly monetary policy review is scheduled at 11:00 IST tomorrow, 4 August 2015. The RBI had cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review on 2 June 2015.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 2 August 2015, said that the Southwest Monsoon was vigorous over Jharkhand and was active over Gangetic West Bengal during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 2 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 6% below the LPA in Central India and 9% above the LPA in Northwest India until 2 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, Asian stocks edged lower today, 3 August 2015, amid signs of a deepening slowdown in China's economy, the world's second-largest economy. Key benchmark indices in Singapore, Taiwan, Japan and South Korea fell by 0.2% to 1.67%. In Indonesia, the Jakarta Composite index rose 0.24%.
Weak manufacturing data dragged Chinese stocks. In mainland China, the Shanghai Composite dropped 2.6%. In Hong Kong, the Hang Seng index fell 1.07%.
A gauge of China's factory activity slipped in July, pointing to further sluggishness in the key manufacturing sector of the world's second-largest economy. China's official manufacturing purchasing managers index slipped to 50 in July from 50.2 in June, the National Bureau of Statistics said Saturday, 1 August 2015. A reading of 50 is right at the cutoff point between expansion and contraction compared with the previous month.
The official gauge was still better than a competing measure compiled by research house Markit and Chinese media firm Caixin. Their preliminary PMI estimate was below the 50 level at 48.2--the lowest reading in 15 months.
Energy stocks led decline in US market during the previous trading session on Friday, 31 July 2015, after two energy giants Exxon Mobil and Chevron reported decline in their earnings. Investors also were debating whether data showing weak wage growth could prompt the Federal Reserve to think twice about raising interest rates in September. The wages and benefits that companies, governments and nonprofit institutions pay their employees rose a record-low 0.2% in the second quarter, according to the employment cost index released by the Labor Department. Separately, Chicago PMI rose in July to the highest level since January, suggesting a pickup in business during the summer.
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