Key benchmark indices languished in the red in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 91.76 points or 0.34% at 27,109.73. The Nifty 50 index was currently down 23.20 points or 0.28% at 8,320.15. Weakness in Asian stocks weighed on sentiment on the domestic bourses. Asian stocks edged lower as investors awaited US jobs data to get a clearer picture of the health of the world's biggest economy.
In overseas stock markets, European stocks edged higher in volatile trade. Asian stocks edged lower as investors awaited US jobs data to get a clearer picture of the health of the world's biggest economy. US stocks closed mostly lower yesterday, 7 July 2016, tracking sinking oil prices, but the market pared losses late in the session as investors sought bargains ahead of the closely watched jobs report. As per data released by Automatic Data Processing Inc., US private-sector employment picked up a bit in June. Meanwhile, initial jobless claims fell last week to a nearly three-month low. The US government will announce nonfarm payroll report for June 2016 later in the global day today, 8 July 2016.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,461 shares fell and 1,061 shares rose. A total of 143 shares were unchanged. The BSE Mid-Cap index was currently up 0.09%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.17%. The decline in this index was lower than the Sensex's fall in percentage terms.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 0.4%), Eicher Motors (down 0.67%), Bajaj Auto (down 0.28%), and TVS Motor Company (down 1.02%) declined. Ashok Leyland (up 0.7%), Maruti Suzuki India (up 0.4%), Hero MotoCorp (up 1.58%), and Tata Motors (up 2.39%) gained.
The BSE Auto index had underperformed the market over the past one month till 7 July 2016, rising 0.28% compared with 0.71% rise in the Sensex. The index had, however, outperformed the market in past one quarter, gaining 12.06% as against Sensex's 10.19% rise.
Airline stocks rose as crude oil prices dropped in the previous session. Jet Airways (India) (up 0.32%), SpiceJet (up 1.22%) and InterGlobe Aviation (up 0.77%) rose. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
In the global commodities markets, Brent crude oil futures for September settlement was up 51 cents at $46.91 a barrel. The contract had dropped $2.40 a barrel or 4.91% to settle at $46.40 a barrel during the previous trading session. Crude oil prices rebounded after hitting two-month lows in the previous session triggered by news that the US weekly crude draw missed some forecasts.
Garware-Wall Ropes rose 1.14% after credit ratings agency, ICRA, upgraded its long-term ratings on the company to ICRA AA- from ICRA A+. The announcement was made after market hours yesterday, 7 July 2016. ICRA has revised its rating for facilities availed by Garware-Wall Ropes. ICRA has revised its rating on long-term scale to (ICRA) AA- /Stable from (ICRA) A+. ICRA has reaffirmed its rating on short-term scale and commercial paper to (ICRA) A1+.
8K Miles Software Services surged 10.5% after consolidated net profit rose 56.49% to Rs 19.32 crore on 20.31% rise in total income to Rs 103.89 crore in Q1 June 2016 over Q4 March 2016. The result was announced during market hours today, 8 July 2016.
Alembic Pharmaceuticals rose 4.21% after the company received Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for the inspection carried out by the US drug regulator at the company's Karakhadi active pharmaceutical ingredients (API) plant III in Gujarat in April 2015. An EIR is issued after completion of inspection of a plant. The announcement was made during trading hours today, 8 July 2016.
Meanwhile, India Meteorological Department (IMD) said in its latest update yesterday, 7 July 2016 that in the week from 30 June to 6 July 2016, rainfall was above long period average (LPA) by 35% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon until 6 July has been 1% above LPA, thus making a further recovery of 13% from the week ended 29 June, the IMD said. The IMD said in its extended forecast upto 25 July that it expects above normal rainfall activity over central India till 15 July. The weather office expects normal to above normal rainfall over northern parts of the country and northeastern states between 16 to 25 July. The IMD expects a subdued rainfall activity over south Peninsular India.
The IMD has forecast rains to be above normal in July and August 2016. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture. Around 70% of the country's farmlands are rain-fed.
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