Market may edge lower in early trade

Market is seen opening slightly lower. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 17.50 points at the opening bell.

In overseas stock markets, Asian stocks witnessed a mixed trend. In China, the Shanghai Composite was currently up 1.25%. 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, foreign portfolio investors (FPIs) bought shares worth a net Rs 434.93 crore yesterday, 2 May 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 109.56 crore yesterday, 2 May 2016, as per provisional data.

Among corporate news, State Bank of India (SBI) after trading hours yesterday, 2 May 2016, 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%. MCLR 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.

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 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 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 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 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.

Adani Ports and Special Economic Zone (APSEZ) is scheduled to announce its Q4 March 2016 results today, 3 May 2016.

Stocks of public sector banks and index heavyweights HDFC Bank, ITC and Infosys led losses for key benchmark indices on the first trading session of the week yesterday, 2 May 2016. The Sensex fell 169.65 points or 0.66% to settle at 25,436.97, its lowest closing level since 12 April 2016.

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