After an initial surge triggered by data showing strong growth in core sector in March 2016 and overnight gains on Wall Street, key benchmark indices trimmed gains in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 210.52 points or 0.83% at 25,647.49. The Nifty 50 index was currently up 61.60 points or 0.79% at 7,867.50.
The Sensex rose 268.99 points or 1.05% at the day's high of 25,705.96 in early trade, its highest level since 29 April 2016. The barometer index rose 40.87 points or 0.16% at the day's low of 25,477.84 at the onset of the trading session. The Nifty rose 84.35 points or 1.08% at the day's high of 7,890.25 in early trade, its highest level since 28 April 2016. The index rose 15.05 points or 0.19% at the day's low of 7,820.95 at the onset of the trading session.
On the macro front, data released by the government after market hours yesterday, 2 May 2016, showed that the core sector registered a growth of 6.4% in March 2016 over March 2015. The eight core industries comprising of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have nearly 38% weightage in the index of industrial production (IIP). The core sector registered a growth of 2.7% in the year ended 31 March 2016 over the year ended 31 March 2015.
In overseas stock markets, Asian stocks witnessed a mixed trend. Chinese stocks saw a divergent trend after the latest data showed deceleration in China's manufacturing activity in April 2016. In mainland China, the Shanghai Composite was currently up 1.6%. In Hong Kong, the Hang Seng index was currently down 1.11%. The Caixin China general manufacturing purchasing managers' index fell to 49.4 in April 2016 from 49.7 in March 2016. A reading below 50 indicates economic contraction. China's official manufacturing PMI, a competing gauge, came in at 50.1 in April compared with 50.2 in March, according to data released by the National Bureau of Statistics on 1 May 2016.
US stocks closed higher yesterday, 2 May 2016, after data showed slow-but-steady economic growth unfolding in the US. Latest data from the Institute for Supply Management showed manufacturing index in US fell to 50.8 last month from 51.8 in March. The reading, coming in above 50, indicates expansion in manufacturing activity, albeit at a slower-than-expected pace. Meanwhile, the San Francisco Federal Reserve President John Williams reiterated yesterday, 2 May 2016, his view that the US economy is ready for higher interest rates, but flagged the risk of broad-based declines in asset prices as a result.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,355 shares rose and 490 shares declined. A total of 88 shares were unchanged. The BSE Mid-Cap index rose 0.52%, underperforming the Sensex. The BSE Small-Cap index rose 0.91%, outperforming the Sensex.
Auto stocks edged higher. Ashok Leyland (up 1.37%), Maruti Suzuki India (up 0.92%), Eicher Motors (up 1.02%), Mahindra & Mahindra (up 1.03%) and Bajaj Auto (up 0.49%) rose.
Tata Motors rose 3.17% at Rs 420.20 after the company announced that its total sales of commercial and passenger vehicles rose 9.9% to 39,763 units in April 2016 over April 2015. Domestic sales of Tata commercial and passenger vehicles rose 11% to 35,978 units in April 2016 over April 2015. Sales from exports were flat at 3,785 units in April 2016 compared with corresponding previous year period. The company announced the monthly sales volume data after market hours yesterday, 2 May 2016.
Hero MotoCorp was up 1.41% at Rs 2,948.70 after the company reported 14.89% increase in total sales to 6.12 lakh units in April 2016 over April 2015. Having grown by 13.6% and 14% in February 2016 and March 2016 respectively, this is the third consecutive month of double digit monthly sales growth for the company, Hero MotoCorp said in a statement. The announcement was made after market hours yesterday, 2 May 2016.
Hero MotoCorp is scheduled to announce its Q4 March 2016 results on 5 May 2016.
TVS Motor Company rose 1.04% after the company reported 16% increase in total sales to 2.27 lakh units in April 2016 over April 2015. The announcement was made after market hours yesterday, 2 May 2016.
Cement stocks gained. UltraTech Cement (up 1.69%), ACC (up 1.27%), Ambuja Cements (up 0.78%) and Shree Cement (up 0.37%) rose.
Grasim Industries was up 1.95%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Adani Ports and Special Economic Zone (APSEZ) was up 2.61% at Rs 239.75. The company is scheduled to announce its Q4 March 2016 results today, 3 May 2016.
Indian Oil Corporation (IOCL) fell 1.16% at Rs 421.20. The company after market hours yesterday, 2 May 2016, announced that in accordance with the approval accorded by Cabinet Committee on Economic Affairs (CCEA) on 13 May 2013, the Government of India (GOI) has offered 1.21 crore shares to the eligible employees of the company at a discounted price of Rs 367.65 per share. In connection with this, action has been initiated by the company for sale of equity shares to the eligible employees by the GOI, IOCL said. The offer for sale of share shall remain open from 2 May 2016 to 10 May 2016, IOCL said. GOI is the principal shareholders of IOCL. It holds 58.57% stake in IOCL.
Powered by Capital Market - Live News
