Market drifts lower in early trade; breadth positive

Key benchmark indices are trading with small losses in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 41.70 points or 0.08% at 52,441.01. The Nifty 50 index was down 2.65 points or 0.02% at 15,718.85. Asian stocks are trading mixed.

The S&P BSE Mid-Cap index was down 0.02%. The S&P BSE Small-Cap index was up 0.08%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1432 shares rose and 1047 shares fell. A total of 93 shares were unchanged.

Economic data:

Markit Manufacturing PMI for June will be declared today, 1 July 2021.

The combined output of the eight core sector industries rose by 16.8% in May, as compared to a year ago. Core sector output had risen by 60% in the previous month of April. The eight core industrial of coal, crude oil, natural gas, refinery products, steel, cement, fertiliser and electricity have a combined weight of over 40% in the Index of Industrial production, or IIP.

India has received 10% more rainfall than normal in June, the India Meteorological Department (IMD) said on Wednesday. The monsoon made onset over Kerala on June 3.

Stocks in news:

Indian Oil Corporation rose 0.6%. The company's board has accorded Stage - 1 approval for implementation of India's first ever Styrene Monomer Project' with a capacity of 387 thousand metric tonnes per annum (TMTPA) at an estimated cost of Rs. 4,495 crore, at Indian Oil's Panipat Refinery & Petrochemical Complex.

Union Bank of India rose 0.65%. Union Bank of India said the bank's board of directors approved capital plan of the bank to raise capital funds up to Rs 9,700 crore.

Vodafone Idea dropped 6.83%. Vodafone Idea reported a consolidated net loss of Rs 7,022.8 crore for the quarter ended March 31, 2021. It had posted a loss of Rs 11,643.50 crore in the corresponding quarter of the previous fiscal. Gross revenue stood at Rs 9,607.6 crore, down 18.26% against Rs 11,754.2 crore registered in the March 2020 quarter.

Agro Tech Foods advanced 3.14%. Agro Tech Foods has completed purchase of land in Kothur (Telangana) to an extent of 2638.473 Sq Yards (2206.08 Sq meters) on 29th June 2021. This land parcel is adjacent to Company's existing plant situated in Kothur and amounts to approx. 25% of the current land area of the existing plant and will be utilized for continued expansions of company's manufacturing operations.

Vimta Labs gained 2.65%. Vimta Labs has entered into a long term Public Private Partnership (PPP) Agreement with Food Safety and Standards Authority of India (FSSAI), Government of India, on June 29, 2021, to "Setup, Operate and Transfer", the National Food Laboratory at JNPT, Navi Mumbai.

Global Markets:

Asian stocks were mixed Thursday on concerns about the more contagious delta strain of Covid-19 and looked ahead to a U.S. payrolls report. Markets in Hong Kong are closed on Thursday for a holiday.

China's factory activity expanded at a softer pace in June. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 51.3 last month from May's 52, marking the 14th month of expansion.

Japanese big manufacturers' business confidence improved in the second quarter to hit a two-and-half-year high, a central bank survey showed. Service-sector sentiment also turned positive for the first time in five quarters, the Bank of Japan's (BOJ) Tankan survey showed.

The S&P 500 nabbed its fifth straight record closing high on Wednesday as investors shrugged off positive economic data and looking toward Friday's highly anticipated employment report.

U.S. private payrolls increased more than expected in June. Private payrolls increased by 692,000 jobs in June. Data for May was revised lower to show 886,000 jobs added instead of the initially reported 978,000.

Back home, the domestic equity benchmarks ended with minor losses on Wednesday. The barometer index, the S&P BSE Sensex, shed 66.95 points or 0.13% to 52,482.71. The Nifty 50 index lost 26.95 points or 0.17% to 15,721.50.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,646.66 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,520.18 crore in the Indian equity market on 30 June, provisional data showed.

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