Key indices settled with small gains as positive cues from global stocks supported gains on the bourses. The barometer index, the S&P BSE Sensex, rose 60.23 points or 0.19% at 32,575.17, as per the provisional closing data. The Nifty 50 index rose 37.55 points or 0.37% at 10,114.65, as per the provisional closing data. The Nifty 50 index scaled record high on intraday basis in late trade. Private survey showing Indian manufacturing activity contracting in July kept gains of indices under check.
After opening with a positive bias on firm Asian stocks, key indices traded in a narrow range in positive terrain till morning trade. Indices dropped into the negative terrain in mid-morning trade. Later, indices recovered and swung between gains and losses near the flat line till mid-afternoon trade. Market regained strength and hit fresh intraday high in late trade.
The S&P BSE Mid-Cap index rose 0.45%, outperforming the Sensex. The S&P BSE Small-Cap index declined 0.12%, underperforming the Sensex.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,618 shares fell and 1,055 shares rose. A total of 166 shares were unchanged.
The total turnover on BSE amounted to Rs 3180.47 crore, lower than turnover of Rs 3689.18 crore registered during the previous trading session.
The Sensex gained 117.08 points or 0.36% at the day's high of 32,632.02 in late trade, its highest level since 27 July 2017. The index fell 52.69 points or 0.16% at the day's low of 32,462.25 in mid-morning trade. The Nifty gained 51.50 points or 0.51% at the day's high of 10,128.60, in late trade, also a record high. The index fell 11.35 points or 0.11% at the day's low of 10,065.75.
Tech Mahindra jumped 4.09% after consolidated net profit rose 34.27% to Rs 791.79 crore on 0.17% growth in total income to Rs 7746.79 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 31 July 2017.
Tech Mahindra's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 12.7% to Rs 935 crore in Q1 June 2017 over Q4 March 2017.
Auto stocks gained ahead of the Reserve Bank of India's policy meet announcement tomorrow, 2 August 2017. Ashok Leyland (up 1%), Bajaj Auto (up 0.62%), Hero MotoCorp (up 2.05%), and TVS Motor Company (up 2.54%) gained. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Mahindra & Mahindra (M&M) rose 1.71% after the company announced growth in auto and tractor sales in July. Total auto sales rose 6% to 41,747 units in July 2017 over July 2016. Domestic sales rose 13% to 39,762 units in July 2017 over July 2016. Exports tumbled 52% to 1,985 units in July 2017 over July 2016.
Total tractor sales gained 7% to 18,832 units in July 2017 over July 2016. Domestic sales rose 7% to 17,682 units in July 2017 over July 2016. Exports rose 4% to 1,150 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.
Tata Motors rose 0.83% after the company said its total passenger and commercial vehicle total sales rose 7% to 46,216 units in July 2017 over July 2016. Domestic sales grew by 13% to 42,775 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.
Eicher Motors advanced 4.85% after the company said its total motorcycle sales rose 21% to 64,459 units in July 2017 over July 2016. Exports grew by 4% to 1,302 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.
Maruti Suzuki India rose 2.3% after the company said that total sales rose 20.6% to 1.65 lakh units in July 2017 over July 2016. Domestic sales rose 22.4% to 1.54 lakh units in July 2017 over July 2016. Exports rose 0.1% to 11,345 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.
Century Plyboards (India) fell 5.13% after net profit fell 20.74% to Rs 34.12 crore on 7.06% increase in total income to Rs 473.97 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 1 August 2017.
Marico shed 2.5% after consolidated net profit fell 11.93% to Rs 235.94 crore on 3.73% decline in total income to Rs 1715.28 crore in Q1 June 2017 over Q1 June 2016. The result was announced during trading hours today, 1 August 2017.s
Hindalco Industries advanced 2.98% after a foreign brokerage firm reportedly initiated coverage on the stock with an outperform rating. A foreign brokerage firm reportedly initiated coverage on the Hindalco Industries stock with an outperform rating with 12-month price target at Rs 270. Hindalco continues to enjoy a favourable position on the cost curve, the brokerage firm said. Low costs of production will ensure steady free cash flow generation in India and domestic coal prices remaining benign will also aid the company, it said.
Tata Steel rose 0.65% after the company announced that it has completed the sale of its 42 inch and 84 inch pipe mills-Hartlepool SAW pipe mills to Liberty House Group. The announcement was made during market hours today, 1 August 2017.
Tata Steel will retain its 20 inch tube mills at the same Hartlepool site, where a further 270 people work.
Bharti Airtel gained 0.49% after Airtel Payments Bank, a subsidiary of Bharti Airtel said Airtel Payments Bank and HPCL has formed a strategic partnership to boost India's digital payments ecosystem. The announcement was made during market hours today, 1 August 2017.
On the macroeconomic data front, Markit Economics said today, 1 August 2017 that the introduction of the goods & services tax (GST) weighed heavily on the Indian manufacturing industry in July. New orders and output decreased for the first time since the demonetisation-related downturn recorded in December last year, with rates of contraction the steepest since February 2009 in both cases. At 47.9 in July, down from 50.9 in June, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) was at its lowest mark since February 2009 and highlighted the first deterioration in business conditions in 2017 so far.
Meanwhile, the combined index of eight core industries, comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 0.4% in June 2017 over June 2016. Its cumulative growth during April to June, 2017-18 was 2.4%.
India's fiscal deficit reached Rs 4.42 lakh crore during the first quarter ended June of the current fiscal year 2017-18 (FY 2018) or 80.8% of the budgeted target for FY 2018, according to data released by the Controller General of Accounts, Ministry of Finance.
GDP growth rate of India will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth, reported a study conducted by a leading research agency, Moody's. According to the US-based agency estimates, the economy will grow 7.5% in 2016-17 and 7.7% in 2017-18. While it forecasted that the economic growth will gradually increase to around 8% over the next 3-4 years.
Overseas, European stocks gained as factories in the euro zone started the second half with buoyant growth, which although slightly weaker than previously estimated was broad-based and appears to be sustainable, a survey showed. IHS Markit's final manufacturing Purchasing Managers' Index dipped to 56.6 from June's six-year high of 57.4, slightly down from a flash estimate of 56.8.
Eurozone economic growth gathered pace in the three months to June. The European Union's statistics agency said that eurozone gross domestic product was 0.6% higher in June than in the three months through March, and 2.1% higher than in the second quarter of 2016.
Most Asian stocks gained on rising confidence in global growth. Growth in China's manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales. The Caixin/Markit Manufacturing PMI rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June.
Japan's manufacturing activity grew in July at the slowest pace in eight months as export demand weakened, a private survey showed. The Markit/Nikkei Japan Final Manufacturing PMI dipped to 52.1 in July on a seasonally adjusted basis, slightly weaker than a preliminary reading of 52.2 and a final 52.4 in the previous month.
In US, the Dow Jones Industrials Average finished at an all-time high yesterday, 31 July 2017, but the broader market's gains were hobbled by losses in the technology sector.
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