Market turns positive after initial slide

A bout of volatility was seen in early trade as domestic stocks turned positive soon after a subdued start triggered by negative Asian stocks. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 50.50 points or 0.15% at 33,305.86. The Nifty 50 index was up 10.25 points or 0.10% at 10,222.05.

The S&P BSE Mid-Cap index was up 0.26%. The S&P BSE Small-Cap index was up 0.27%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 806 shares rose and 603 shares fell. A total of 49 shares were unchanged.

Overseas, Asian stocks declined as a sell-off in once much-favored US technology shares deepened and volatility soared. US stocks fell sharply yesterday, 2 April 2018 driven by both uncertainty surrounding trade policy and weakness in the large-capitalization technology and internet sectors.

The IHS Markit manufacturing purchasing managers index hit a three-year high of 55.6 in March, up from 55.3. The ISM manufacturing report for the same month came in at 59.3, compared with a previous monthly reading of 60.8. A reading of 50 or above indicates improving conditions.

Back home, State Bank of India (up 2.19%), Yes Bank (up 1.49%) and Tata Motors (up 0.83%) edged higher from the Sensex pack.

Wipro (down 1.64%), Tata Steel (down 0.96%) and ONGC (down 0.83%) edged lower from the Sensex pack.

Motherson Sumi Systems (MSSL) gained 3.26%. MSSL through its step-down subsidiary Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), announced the proposed acquisition of Reydel Automotive Group (Reydel), a privately held portfolio company of Cerberus Capital Management, L.P. (Cerberus) that manufactures interior components and modules for global automotive customers. The purchase price for the transaction is $201 million. The announcement was made after market hours yesterday, 2 April 2018.

Markit Economics will today, 3 April 2018 unveil the result of a monthly survey on the performance of India's manufacturing sector in March 2018. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in February 2018 from 52.4 in January 2018.

The output of eight core infrastructure sector, constituting 40.27% of the weight of items included in the Index of Industrial Production, increased 5.3% in February 2018 over February 2017. Its cumulative output moved up 4.3% in April to February 2017-18. The data was announced after market hours yesterday, 2 April 2018.

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