Metal stocks nudge higher

Market continued to trade in a narrow range near the flat line in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 9.97 points or 0.03% at 32,504.97. The Nifty 50 index rose 5.30 points or 0.05% at 10,082.40. Firm cues from global stocks were offset by private survey showing Indian manufacturing activity contracting in July.

After opening with a positive bias on firm Asian stocks, key indices traded in a narrow range in positive terrain till morning trade. Indices dropped into the negative terrain in mid-morning trade. Later, indices continued to hover near the flat line.

The S&P BSE Mid-Cap index rose 0.36%, outperforming the Sensex. The S&P BSE Small-Cap index declined 0.1%. The decline in this index was higher than the Sensex's decline in percentage terms.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,448 shares fell and 1,057 shares rose. A total of 136 shares were unchanged.

Metal stocks nudged higher. Hindalco Industries (up 2.35%), Hindustan Copper (up 1.36%), JSW Steel (up 0.81%), Tata Steel (up 0.6%), Jindal Steel & Power (up 0.33%), Vedanta (up 0.3%), Hindustan Zinc (up 0.16%) and National Aluminium Company (up 0.14%) gained. NMDC (down 0.91%) and Steel Authority of India (down 0.24%) declined.

FMCG shares were mixed. Godrej Consumer Products (down 7.05%), Dabur India (down 1.89%), Emami (down 1.82%), Colgate-Palmolive (India) (down 0.98%), Marico (down 0.91%), Procter & Gamble Hygiene and Health Care (down 0.38%), Tata Global Beverages (down 0.18%) edged lower. Hindustan Unilever (up 1.62%), Jyothy Laboratories (up 0.78%), GlaxoSmithkline Consumer Healthcare (up 0.78%), Britannia Industries (up 0.31%) and Nestle India (up 0.14%) gained.

Tata Motors rose 1.1% after the company said its total passenger and commercial vehicle total sales rose 7% to 46,216 units in July 2017 over July 2016. Domestic sales grew by 13% to 42,775 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.

Eicher Motors advanced 2.79% at Rs 30,879.95 after the company said its total motorcycle sales rose 21% to 64,459 units in July 2017 over July 2016. Exports grew by 4% to 1,302 units in July 2017 over July 2016. The announcement was made during market hours today, 1 August 2017.

Shakti Pumps (India) jumped 4.54% at Rs 504.20 after Old Bridge Capital Management bought 1.48 lakh shares of the company at Rs 476.02 per share in a bulk deal on the NSE yesterday, 31 July 2017.

On the macroeconomic data front, Markit Economics said today, 1 August 2017 that the introduction of the goods & services tax (GST) weighed heavily on the Indian manufacturing industry in July. New orders and output decreased for the first time since the demonetisation-related downturn recorded in December last year, with rates of contraction the steepest since February 2009 in both cases. At 47.9 in July, down from 50.9 in June, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) was at its lowest mark since February 2009 and highlighted the first deterioration in business conditions in 2017 so far.

Meanwhile, the combined index of eight core industries, comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 0.4% in June 2017 over June 2016. Its cumulative growth during April to June, 2017-18 was 2.4%.

GDP growth rate of India will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth, reported a study conducted by a leading research agency, Moody's. According to the US-based agency estimates, the economy will grow 7.5% in 2016-17 and 7.7% in 2017-18. While it forecasted that the economic growth will gradually increase to around 8% over the next 3-4 years.

Overseas, European stocks opened slightly higher as investors reacted to earnings reports. Most Asian stocks gained on rising confidence in global growth. Growth in China's manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales. The Caixin/Markit Manufacturing PMI rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June.

Japan's manufacturing activity grew in July at the slowest pace in eight months as export demand weakened, a private survey showed. The Markit/Nikkei Japan Final Manufacturing PMI dipped to 52.1 in July on a seasonally adjusted basis, slightly weaker than a preliminary reading of 52.2 and a final 52.4 in the previous month.

In US, the Dow Jones Industrials Average finished at an all-time high yesterday, 31 July 2017, but the broader market's gains were hobbled by losses in the technology sector.

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