Strong market breadth

Key benchmark indices alternately swung between positive and negative zone in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 16.77 points or 0.05% at 33,238.59. The Nifty 50 index was down 7.50 points or 0.07% at 10,204.30. Auto stocks edged lower. Most capital goods stocks rose.

A bout of volatility was seen in early trade as domestic stocks turned positive soon after a subdued start triggered by negative Asian stocks. Key benchmark indices once again sink in negative zone in morning trade. Stocks extended fall and hit fresh intraday low in mid-morning trade after latest data showed that India's manufacturing growth has slowed to five-month low in March. Indices, however, turned range bound in afternoon trade.

The S&P BSE Mid-Cap index was up 0.48%. The S&P BSE Small-Cap index was up 0.75%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,556 shares rose and 932 shares fell. A total of 133 shares were unchanged.

IndusInd Bank rose 1.3% after the bank announced a pilot with WhatsApp enterprise solution in India to communicate with its customers. The private sector lender became one of the first banks to participate in the WhatsApp pilot. The announcement was made during market hours today, 3 April 2018.

The integration with WhatsApp will allow IndusInd Bank to start appearing as a verified account when it communicates with its customers. The initial test phase will allow the bank to communicate important transaction alerts to the customers on WhatsApp. It also allows two-way communication with replies to customer messages and provides basic banking services like checking balance, mini statement, checking reward points as well as updation of Aadhaar through WhatsApp. The messaging on WhatsApp is being rolled out to customers in phases; however, customers can save the official WhatsApp number of the bank and initiate conversation.

Auto stocks edged lower. TVS Motor Company (down 2.54%), Maruti Suzuki India (down 0.34%), Eicher Motors (down 1.38%), Ashok Leyland (down 0.34%), Escorts (down 0.25%), Bajaj Auto (down 0.63%) and Hero MotoCorp (down 0.06%) fell.

Tata Motors (up 1.48%) and Mahindra & Mahindra (M&M) (up 2.25%) gained.

Most capital goods stocks rose. Bharat Heavy Electricals (Bhel) (up 2.06%), BEML (up 2.08%), Bharat Electronics (up 1%), Punj Lloyd (up 2.23%) and Siemens (up 2.09%) rose. ABB India (down 0.44%), L&T (down 0.86%) and Thermax (down 1.29%) fell.

Galaxy Surfactants fell 2.13% after the company said it received a total of 13 observations for two of its facilities in Maharashtra after USFDA audit. The announcement was made after market hours yesterday, 2 April 2018.

Galaxy Surfactants announced that it has five manufacturing facilities in India, one located at Taloja (Maharashtra), three located at Tarapur (Maharashtra) and one located at Jhagadia (Gujarat). Of the facilities at Tarapur, two of the facilities viz. M3 and N46, have undergone US Food and Drug Administration (USFDA) inspection, which was concluded on 30 March 2018. These facilities manufacture two products viz. Octyl Methoxy Cinnamate and Octocrylene, which have USP monograph.

On the macro front, data released today, 3 April 2018 showed that manufacturing conditions improved for the eighth consecutive in March, but at the weakest pace since October. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a five-month low of 51 in March from 52.1 in February.

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.

Overseas, shares in Europe and Asia 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.

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