Positive market breadth

Key benchmark indices continued to hover between positive and negative terrain and within a narrow range near the flat line in afternoon trade. At 13:21 IST, the barometer index, the S&P BSE Sensex, was up 11.99 points or 0.04% at 28,990.01. The Nifty 50 index was currently down 2.70 points or 0.03% at 8,940.30. The Sensex was currently trading slightly below the psychologically important 29,000 mark. The barometer index has alternately moved above and below that level in intraday trade so far.

The market breadth indicating the overall health of the market was positive. On BSE, 1,360 shares rose and 1,155 shares declined. A total of 150 shares were unchanged. The BSE Mid-Cap index was currently up 0.1%. The BSE Small-Cap index was currently up 0.53%. Both these indices outperformed the Sensex.

Meanwhile, data released by the stock exchanges showed that foreign funds made substantial purchases of Indian stocks yesterday, 6 September 2016. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1438.72 crore yesterday, 6 September 2016, as per provisional data released by the stock exchanges.

In overseas stock markets, European stocks were mixed. Most Asian stocks were trading higher on reduced likelihood of an imminent interest-rate increase by the US Federal Reserve, after data showed that US service-sector activity fell to a six-year low in August. US stocks closed higher yesterday, 6 September 2016, after surprisingly weak US services sector activity data lowered the chances a Federal Reserve will hike rates this month. The Institute for Supply Management (ISM) yesterday, 6 September 2016, said its non-manufacturing purchasers manager index (PMI) index fell to 51.4 in August from 55.5 in July.

Shares of power generation and power distribution companies were mixed. Torrent Power (down 2.44%), NHPC (down 1.45%), and NTPC (down 1.01%) declined. GVK Power & Infrastructure (up 4.01%), Adani Power (up 1.48%), Power Grid Corporation of India (up 0.08%), Reliance Infrastructure (up 0.4%) and Reliance Power (up 0.29%) gained.

Tata Power Company slipped 2.17% to Rs 76.70 after the stock turned ex-dividend today, 7 September 2016, for dividend of Rs 1.30 per share for the year ended 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 1.65% based on the closing price of Rs 78.40 yesterday, 6 September 2016.

Shares of state run coal mining major Coal India rose 0.27% to Rs 329.70. The stock hit high of Rs 331 and low of Rs 327.30 so far during the day.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 0.61%), Ashok Leyland (up 1.28%) and Maruti Suzuki India (up 0.63%) gained. Eicher Motors (down 0.18%), Bajaj Auto (down 0.37%), Hero MotoCorp (down 0.31%), and TVS Motor Company (down 0.99%) declined.

Shares of Tata Motors declined 0.47% to Rs 586.60 in volatile trade. The stock hit a high of Rs 598.60 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 584.50 so far during the day.

Tata Motors said it has secured orders for supply of over 5,000 buses from 25 state/city transport undertakings across the country. Tata Motors in a press release issued after market hours yesterday, 6 September 2016 said the order win is a healthy growth of over 80% compared to last year in the order book position of the company. Ravi Pisharody, Executive Director, Commercial Vehicle Business Unit, Tata Motors said that the company plans to execute these orders in the current financial year (FY 2017). The orders will definitely enable the company to further strengthen its leadership position in the commercial vehicles (CV) passenger space, Pisharody added.

Meanwhile, Jaguar Land Rover (JLR)'s retail sales rose 26% to 36,926 vehicles in August 2016 compared to August 2015. The August 2016 sales is the company's best ever August retail sales, JLR said. The performance in August 2016 was driven by strong sales of the Land Rover Discovery Sport, the Jaguar F-PACE and XE, JLR said. Jaguar sales surged 104% to 10,868 vehicles in August 2016 over August 2015. Land Rover sales rose 9% to 26,058 vehicles in August 2016 over August 2015. JLR is Tata Motors' British luxury car unit.

Bharat Forge rose 1.7% after improvement in August orders for North America Class 8 trucks on month-on-month basis. As per FTR release, preliminary North America Class 8 truck orders increased 34.62% to 14,000 units in August 2016 compared with 10,400 units sold in July 2016. About 30% of Bharat Forge's revenue reportedly comes from North America truck market. However, the Class 8 order activity for August was the weakest for that month since 2010 and down 35% in August 2016 over August 2015. Class 8 orders for the last twelve months have totaled 206,000 units.

Nitin Fire Protection Industries rose 1.39% after the company said that board of directors approved issuing equity shares through qualified institutional placement (QIP). The proposed QIP of shares will be subject to the approval of the shareholders at the upcoming annual general meeting (AGM) on 30 September 2016. The board of Nitin Fire Protection Industries, which met yesterday, 6 September 2016, also considered the company's consolidated Q1 June 2016 results. On a consolidated basis, net profit of Nitin Fire Protection Industries rose 35.72% to Rs 28.19 crore on 3.62% rise in net sales to Rs 350.14 crore in Q1 June 2016 over Q1 June 2015.

Chennai Petroleum Corporation lost 1.8% after net profit fell 49.25% to Rs 469.80 crore on 14.11% decline in total income from operations to Rs 9781.38 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 6 September 2016.

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