Indices sharply pare gains

Key benchmark indices further pared gains in mid-afternoon trade. The Nifty slipped below the 11,100 level and moved towards 11,050-mark. At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 89.06 points or 0.24% at 37,439.39. The Nifty 50 index was up 25.55 points or 0.23% at 11,073.35.

The market breadth was almost even. On the BSE, 1193 shares rose and 1166 shares fell. A total of 176 shares were unchanged. The S&P BSE Mid-Cap index was up 0.17%. The S&P BSE Small-Cap index was up 0.35%.

Auto stocks witnessed selling. TVS Motor Company (down 1.74%), Eicher Motors (down 1.27%), Mahindra and Mahindra (down 1.5%), Bajaj Auto (down 1.05%), Hero MotoCorp (down 0.83%), Tata Motors (down 0.66%), Escorts (down 0.63%) and Maruti Suzuki India (down 0.42%) declined. Ashok Leyland (up 0.47%) edged higher.

The Federation of Automobile Dealers Associations (FADA) today released the monthly vehicle registration data for July 2019. For the month of July, overall sales continued to be negative at 6%, a drop of 5% in 2-wheeler sales, personal vehicles (PV) sales tanked by 11% and commercial vehicles (CV) sales dropped 14%.

On a positive note, overall sales up grew 5% in July 2019 as compared to June 2019. June 2019 had the 2nd lowest volume base this year after February. Postponement of demand seen in June due to deficient rainfall concluded in July, after onset and even spread of monsoon and slight liquidity improvement seen towards July end in banking system contributed also, towards this MoM uptick in sales.

FADA categorised the near-term outlook as cautiously optimistic''.

Multiplex house major INOX Leisure announced that the company has discontinued commercial operations at INOX Multiplex Cinema Theatre situated at Poonam Mall, Wardhaman Nagar, Nagpur. The multiplex had a total of three screens with a total seating capacity of 1068 seats. The company's stock was trading 0.45% higher at Rs 293.15.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.4125, compared with its close of 71.1450 during the previous trading session.

The yield on 10-year benchmark federal paper rose to 6.596% at 14:13 IST compared with 6.535% at close in the previous trading session.

In the commodities market, Brent crude for October 2019 settlement was up 57 cents at $59.21 a barrel. The contract rose 41 cents or 0.7% to settle at $58.64 a barrel in the previous trading session.

MCX Gold futures for 5 August 2019 settlement declined 0.56% at Rs 37,725.

India's holdings of the US government treasury securities rose by around $6 billion to $162.7 billion at the end of June, hitting the highest level in at least one year. The holdings are up 10.45% over last one year.

Overseas, European markets were trading higher while Asian markets closed on a positive note on Monday as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors' fears of a sharp global economic slump.

US stocks rebounded on Friday as news of potential German economic stimulus brought buyers back to the equities market.

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