Key indices edge higher in early trade

Key benchmark indices edged higher in early trade tracking overnight gains on Wall Street. At 9:22 IST, the barometer index, the S&P BSE Sensex was up 158.70 points or 0.62% at 25,595.67. The Nifty 50 index was currently up 48 points or 0.61% at 7,853.90.

In overseas stock markets, Asian stocks witnessed a mixed trend. In China, the Shanghai Composite was currently up 1.59%. Latest data showed that a private gauge of nationwide factory activity in China fell to 49.4 in April from 49.7 in March. Japanese stock market was shut due to a holiday. US stocks closed higher yesterday, 2 May 2016, after data showed slow-but-steady economic growth unfolding in the US. Latest data from the Institute for Supply Management showed manufacturing index in US fell to 50.8 last month from 51.8 in March. The reading, coming in above 50, indicates expansion in manufacturing activity, albeit at a slower-than-expected pace. Meanwhile, the San Francisco Federal Reserve President John Williams reiterated yesterday, 2 May 2016, his view that the US economy is ready for higher interest rates, but flagged the risk of broad-based declines in asset prices as a result.

Closer home, the broad market depicted strength. There were more than three gainers against every loser on BSE. 849 shares rose and 241 shares declined. A total of 52 shares were unchanged. The BSE Mid-Cap index rose 0.72%. The BSE Small-Cap index rose 0.68%. Both these indices outperformed the Sensex.

Telecom stocks edged higher. Bharti Airtel (up 1.17%), Idea Cellular (up 1.36%) and Reliance Communications (up 1.24%) rose.

Shares of telecom towers company Bharti Infratel were up 2.09% at Rs 383.95.

State Bank of India (SBI) rose 0.51% at Rs 187.35 after the bank announced reduction in lending rates by 5 basis points (bps) across tenures. SBI's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.90%. MCRL for one-month loans will be 9% and for three-month loans it will be 9.05%. The MCLR on 6-month loans will be 9.10% and for one-year loans the rate would be 9.15%, the bank said. MCLR for two-year loans would be at 9.25% and loans with three-year maturity would carry an MCLR of 9.30%, the bank said. The announcement was made after trading hours yesterday, 2 May 2016.

All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.

Tata Motors rose 1.25% at Rs 412.40 after the company announced that its total sales of commercial and passenger vehicles rose 9.9% to 39,763 units in April 2016 over April 2015. Domestic sales of Tata commercial and passenger vehicles rose 11% to 35,978 units in April 2016 over April 2015. Sales from exports were flat at 3,785 units in April 2016 compared with corresponding previous year. The company announced the monthly sales volume data after market hours yesterday, 2 May 2016.

Hero MotoCorp rose 1.12% at Rs 2,940.30 after the company reported 14.89% increase in total sales to 6.12 lakh units in April 2016 over April 2015. Having grown by 13.6% and 14% in February 2016 and March 2016 respectively, this is the third consecutive month of double digit monthly sales growth for the company, Hero MotoCorp said in a statement. The announcement was made after market hours yesterday, 2 May 2016.

Tata Power Company rose 2% to Rs 71.55 after the company said that its Strategic Engineering Division (Tata Power SED) has received an order from the Border Security Force (BSF), Ministry of Home Affairs, Government of India for the supply of Rajak TBC DN-1, its indigenously developed Hand Held Thermal Imaging Systems (HHTI) (cooled version). BSF is one of the premier forces of India using HHTIs for border surveillance and has selected through a global tender Tata Power SED's Rajak TBC DN-1 multi-function thermal imager after extensive field trials. The announcement was made after market hours yesterday, 2 May 2016.

Coal India lost 0.69% at Rs 286.70. The company and its subsidiaries on provisional basis achieved 90% of targeted production at 40.09 million tonnes in April 2016. Coal India and its subsidiaries on provisional basis achieved 83% of targeted offtake at 42.45 million tonnes in April 2016. The announcement was made after market hours yesterday, 2 May 2016.

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