Key benchmark indices extended intraday gains in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 180.94 points or 0.72% at 25,282.67. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 38 points or 0.49% at 7,744.55. The Sensex rose 193.82 points or 0.77% at the day's high of 25,295.55 in early afternoon trade, its highest level since 3 May 2016. The barometer index rose 61.21 points or 0.24% at the day's low of 25,162.94 in morning trade. The Nifty rose 44.15 points or 0.57% at the day's high of 7,750.70 in early afternoon trade, its highest level since 3 May 2016. The index rose 8.05 points or 0.1% at the day's low of 7,714.60 in morning trade.
In overseas stock markets, Asian stocks edged lower on data showing slowdown in growth in China's services sector last month. The China Caixin services purchasing managers' index (PMI) dropped to 51.8 in April from 52.2 in March. China's official nonmanufacturing PMI, a competing gauge, fell to 53.5 in April from 53.8 in March, according to data released on 1 May 2016. China's economy is the world's second biggest economy. In mainland China, the Shanghai Composite index was currently down 0.07%. In Hong Kong, the Hang Seng index was currently down 0.28%.
US stocks edged lower yesterday, 4 May 2016, after weaker-than-expected private-sector job data. The ADP employment data showed that private payrolls across the US rose by 156,000 last month. The increase is the smallest since April 2013. The report is seen as a precursor to the top-tier nonfarm-payrolls data due on Friday, 6 May 2016. The nonfarm-payrolls data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,209 shares rose and 987 shares declined. A total of 107 shares were unchanged. The BSE Mid-Cap index was currently up 0.39%. The BSE Small-Cap index was currently up 0.4%. Both these indices underperformed the Sensex.
Shares of Idea Cellular edged lower on concerns of increase in debt burden and interest costs after a foreign brokerage reportedly said in a research note that the company may spend about Rs 8627 crore ($1.3 billion) in adding data spectrum in key markets in the upcoming spectrum auction around July 2016. The stock was down 4.31%.
Bharti Airtel also edged lower on concerns of increase in debt burden and interest costs after this same foreign brokerage said in the research note that the company may selectively buy 4G airwaves in the coveted 700 Mhz band in a few circles in the upcoming spectrum auction around July 2016. The stock was down 1.12%.
Shares of Reliance Communications were down 0.55%.
Shares of telecom towers company Bharti Infratel were down 0.68% at Rs 372.05.
FMCG stocks were mostly lower. Jyothy Laboratories (down 0.05%), Marico (down 1.32%), Bajaj Corp (down 0.95%), GlaxoSmithkline Consumer Healthcare (down 0.59%), Nestle India (down 0.48%), Procter & Gamble Hygiene and Health Care (down 0.32%) and Colgate-Palmolive (India) (down 0.15%) edged lower. Emami (up 1.78%), Dabur India (up 1.19%), Britannia Industries (up 0.88%), Tata Global Beverages (up 0.51%) and Hindustan Unilever (up 0.05%) edged higher.
Yes Bank rose 1.01% to Rs 927 after the private sector bank said it has received in-principle approval by Securities and Exchange Board of India (Sebi) for acting as custodian of securities. Yes Bank shall now invest in developing operations, technology and human capital capabilities and seek registration with Sebi as a custodian of securities, the bank said. As per the in-principle approval, Yes Bank shall establish this business within 12 months of this approval.
Custodian of securities is a license granted by Sebi to eligible entities allowing them to offer custodial services to financial market participants including foreign institutional investors (FIIs) and foreign portfolio investors (FPIs).
MOIL gained 1.96% at Rs 244.30 after the company said that the Maharashtra state government has granted mining lease over 53.75 hectare land in village Parsoda, Nagpur district in favour of the company. MOIL said that the lease has been executed and registered by the company. As per approved mining plan, total 5.27 lakh tonnes of total reserves & resources is expected in the area. Further, production of about 40,000 tonnes per annum is expected from the area. The anticipated life of the mine based on the available proved and probable resources is 10 years. The life of the mine is expected to increase after subsequent exploration during the ensuing mining plan period.
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