A strong bout of volatility was witnessed in mid-afternoon trade as key benchmark indices bounced back after briefly turning negative in afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was currently up 64 points or 0.24% at 26,659.45. The Nifty 50 index was currently up 17.05 points or 0.21% at 8,196.55. Strong opening in European equities boosted investors' sentiment.
Among secondary barometers, the BSE Mid-Cap index was currently up 0.50%. The BSE Small-Cap index was currently up 0.92%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,812 shares rose and 819 shares fell. A total of 110 shares were unchanged.
Overseas, European shares opened higher today, 3 January 2017, as strength in financials and commodity-related stocks continued to underpin the region's equity markets.
Asian stocks were trading higher after a key indicator of China's private manufacturing showed robust gains in December 2016. Indonesia's Jakarta Composite Index was, however, down 0.55%. Japan was closed for an extended New Year holiday.
China's Caixin Manufacturing Purchasing Managers' index (PMI) rose 51.9, compared to 50.9 in November on the back of increased demand. A reading above 50 represents expansion in a sector, whereas a reading below 50 represents contraction. The private manufacturing survey results come after figures at the weekend showed China's official PMI fell to 51.4 in December.
Trading in US index futures indicated that the Dow Jones Industrial Average could rise 119.50 points at the opening bell today, 3 January 2017. US financial markets were closed yesterday, 2 January 2017.
Back home, most auto stocks edged higher. Escorts (up 1.03%), Bajaj Auto (up 0.29%), Maruti Suzuki India (up 0.14%), Ashok Leyland (up 0.12%) and Eicher Motors (up 0.10%), edged higher. Mahindra & Mahindra was down 0.3%.
Hero MotoCorp was down 0.95%. The company announced before market hours today, 3 January 2017 that sales fell 33.91% to 3.3 lakh units in December 2016 over December 2015. The company's manufacturing facilities at Gurgaon, Neemrana and Haridwar were closed from 26-31 December 2016 on account of annual maintenance.
Tata Motors was up 0.50%. The company said its passenger and commercial vehicle total sales rose 2% to 40,944 units in December 2016 over December 2015. The company's domestic sales of Tata commercial and passenger vehicles rose 1% to 35,825 units in December 2016 over December 2015. Exports surged 12% to 5,119 units in December 2016 over December 2015. The sales figures were announced after market hours yesterday, 2 January 2017.
TVS Motor Company was up 1.38%. The company's sales fell 8.47% to 1.84 lakh units in December 2016 over December 2015. The announcement was made after market hours yesterday, 2 January 2017.
Power generation stocks were mixed. NHPC (up 0.75%), Tata Power (up 0.40%), NTPC (up 0.36%) and Adani Power (up 0.16%), edged higher. Reliance Infrastructure (down 0.14%), Torrent Power (down 0.2%), Jaiprakash Power Ventures (down 0.25%), Reliance Power (down 0.48%), CESC (down 0.64%) and JSW Energy (down 2.41%), edged lower.
State-run Coal India was up 1.16%.
State-run Power Grid Corporation of India was up 2.21%. The company announced that in terms of Government of India communication on 23 September 2016, on receipt of purchase consideration of Rs 81.21 crore, the company has transferred 3.06 crore equity shares of Rs 10 each of Power System Operation Corporation Limited (POSOCO) to Government of India. The announcement was made after market hours yesterday, 2 January 2017.
Bajaj Hindusthan Sugar rose 2.5% after the company's board of directors at its meeting held yesterday, 2 January 2017, considered seeking necessary approval of shareholders for sale of co-generation business comprising of power generation facility aggregating to 449 megawatts (MW). The company will seek shareholders' nod for entering into contracts/arrangements in respect of the transaction with Lalitpur Power Generation Company (LPGCL) for sale of co-generation power business and also transactions of purchase of power and steam, sale of bagasse, bio gas and water, right to use agreement for use of common facilities, etc. The announcement was made after market hours yesterday, 2 January 2017.
On the macro front, core sector output rose 4.9% in November 2016 on the back of a strong expansion in steel production and electricity generation, but the pace of growth was down from 6.6% in October 2016, data released yesterday, 2 January 2017, showed. Part of the buoyancy was due to the base effect of a lower growth rate at 0.6% in November 2015.
Meanwhile, during the current financial year 2016-17, the Government has so far realised Rs 23528.73 crore, which include Rs 21432.38 crore through minority stake sale in 14 central public sector enterprises (CPSEs) and Rs 2096.35 crore through strategic disinvestment. The total realization of Rs 21432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53% of the budgeted target of Rs 36000 crore (CPSEs' disinvestment), the Ministry of Finance said in a statement during trading hours today, 3 January 2017.
The disinvestment target for the current financial year ending 31 March 2017 has been estimated at Rs 56500 crore comprising Rs 36000 crore from disinvestment of CPSEs and Rs 20500 crore from strategic disinvestment.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
