Market pares some gains

After displaying firmness in early afternoon trade, key benchmark indices pared some gains in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex was up 179.41 points or 0.66% at 27,179.13. The Sensex was currently trading above the psychologically important 27,000 level after regaining that level in early trade. The Nifty 50 index was currently up 58.15 points or 0.70% at 8,345.90. The market sentiment was boosted by data showing further improvement in India's manufacturing sector last month. Strong inflow of funds from foreign portfolio investors into the domestic markets during the previous trading session also boosted sentiment. Gains in global stocks also aided the upmove on the domestic bourses.

The outcome of a monthly survey showed that manufacturing growth in India pointed to a further improvement last month supported by a stronger increase in new business inflows. The Nikkei India manufacturing Purchasing Managers' Index (PMI) rose to 51.7 in June, from May's reading of 50.7.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1107.42 crore yesterday, 30 June 2016, as per provisional data released by the stock exchanges.

In overseas stock markets, European shares rose for a fourth straight session today, 1 July 2016, as concerns over Britain's decision to leave the European Union eased, helped by expectations of more central bank support. Asian stocks edged higher tracking overnight gains on Wall Street. In mainland China, the Shanghai Composite rose 0.10%. Latest data showed that the manufacturing momentum in the world's second largest economy skidded to a four-month low in June. China's official manufacturing Purchasing Managers' Index (PMI) came in at 50 last month, against 50.1 logged in May and April. In Japan, the Nikkei 225 Average ended 0.68% higher. The manufacturing sector in Japan continued to contract in June, albeit at a slower pace, the latest survey from Nikkei showed. Manufacturing PMI came in at 48.1 in June, up from May's 47.7. US stocks gained for the third day in a row yesterday, 30 June 2016, recovering from the post-Brexit sell-off.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,528 shares rose and 849 shares declined. A total of 122 shares were unchanged. The BSE Mid-Cap index was currently up 1.32%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.

Capital goods shares edged higher. Thermax (up 4.91%), Bharat Heavy Electricals (up 3.45%), BEML (up 2.76%), Havells India (up 2.46%), Lakshmi Machine Works (up 2.05%), Jindal Saw (up 1.78%), AIA Engineering (up 1.51%), Reliance Defence and Engineering (up 1.48%), Siemens (up 0.78%), Crompton Greaves (up 0.75%), Praj Industries (up 0.71%), Bharat Electronics (up 0.61%), Punj Lloyd (up 0.24%), ALSTOM India (up 0.23%), ABB India (up 0.20%), Alstom T&D India (up 0.17%) and SKF India (up 0.17%), edged higher.

Engineering & construction major L&T rose 2.70% to Rs 1,536.60. The stock hit a high of Rs 1,537.50 and a low of Rs 1,499 so far during the day.

FMCG shares were mixed. Britannia Industries (up 1.93%), Godrej Consumer Products (up 1.55%), Tata Global Beverages (up 1.53%), Dabur India (up 1.52%), GlaxoSmithKline Consumer Healthcare (up 1.32%), Marico (up 1.19%), Nestle India (up 0.25%) and Procter & Gamble Hygiene & Health Care (up 0.19%), edged higher. Hindustan Unilever (down 0.02%), Bajaj Corp (down 0.22%), Colgate Palmolive (India) (down 0.57%) and Jyothy Laboratories (down 0.59%), edged lower.

Data released by the government after market hours yesterday, 30 June 2016 showed that the output of eight core Industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) rose 2.8% in May 2016 over May 2015.

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