Key benchmark indices extended intraday losses in mid-morning trade, with the barometer index, the S&P BSE Sensex, and the Nifty 50 index, both, hitting their lowest level in almost three weeks. At 11:16 IST, the Sensex was down 252.76 points or 0.99% at 25,353.86. The decline for the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 57.55 points or 0.73% at 7,792.25. Data showing slowdown in growth in manufacturing sector in April 2016 and weakness in Asian stocks triggered weakness on the domestic bourses.
The Sensex lost 265.48 points or 1.03% at the day's low of 25,341.14 in mid-morning trade, its lowest level since 12 April 2016. The barometer index lost 41.18 points or 0.16% at the day's high of 25,565.44 in early trade. The Nifty lost 72.50 points or 0.92% at the day's low of 7,777.30 in mid-morning trade, its lowest level since 13 April 2016. The index lost 26.80 points or 0.34% at the day's high of 7,823 in early trade.
The outcome of a monthly survey showed that growth in India's manufacturing sector eased last month amid broadly stagnant inflows of new work. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 50.5 in April 2016 from 52.4 in March 2016. Indian manufacturers saw incoming new orders broadly stagnate in April, following three consecutive months of growth. New export orders expanded at the slowest pace since last October. Input cost inflation accelerated to the fastest since May 2015. Part of the additional cost burden was passed on to clients as selling prices rose further.
The market breadth indicating the overall health of the market was negative. On BSE, 1,069 shares declined and 982 shares rose. A total of 101 shares were unchanged. The BSE Mid-Cap index was currently up 0.74%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.02%. The decline in this index was lower than Sensex's decline in percentage terms.
In overseas stock markets, Japanese stocks led decline in Asian markets as the Japanese yen surged to 1-1/2-year high against the dollar. The Nikkei 225 Average was currently off 3.48%. The stronger yen makes Japanese exports less competitive and cuts into the value of repatriated earnings. Japanese stocks extended losses registered during the previous trading session triggered by the Bank of Japan's (BOJ) decision to keep its policies unchanged. Speculation was rife that the Japanese central bank would announce a further easing of the monetary policy to stimulate Japan's economy. Japanese markets were closed on Friday, 29 April 2016, for a national holiday.
US stocks edged lower during the previous trading session on Friday, 29 April 2016, after weak consumer spending data for March 2016 and after the monthly Chicago Business Barometer index for April showed slowdown in the manufacturing sector. The Chicago Business Barometer decreased 3.2 points to 50.4 in April from 53.6 in March led by a fall in new orders and a sharp drop in order backlogs. It marked a slow start to the second quarter, with most measures down from levels seen a year earlier.
Cement stocks declined. ACC (down 1.35%), Ambuja Cements (down 0.36%) and Shree Cement (down 0.52%) edged lower.
UltraTech Cement was up 0.3% after the company clarified after market hours on Friday, 29 April 2016, that it has no fund raising proposal. The company issued the clarification after recent media reports indicated that the company is looking to raise funds by way of equity for financing acquisition.
Grasim Industries was off 0.59%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Pharma stocks were mostly higher. Wockhardt (up 2%), Alkem Laboratories (up 1.6%), Strides Shasun (up 1.63%), Aurobindo Pharma (up 0.99%), Cipla (up 1.06%), Lupin (up 0.98%), Ipca Laboratories (up 0.44%) and Divi's Laboratories (up 0.29%) edged higher. Dr Reddy's Laboratories (down 1.59%), GlaxoSmithkline Pharmaceuticals (down 1.26%), Cadila Healthcare (down 0.37%), Glenmark Pharmaceuticals (down 0.19%) and Sun Pharmaceutical Industries (down 0.06%) edged lower.
Maruti Suzuki India (Maruti) rose 0.13% to Rs 3,800 after the company reported 13.3% growth in its total sales at 1.26 lakh units in April 2016 over April 2015. Domestic sales rose 16.2% to 1.17 lakh units in April 2016 over April 2015. Exports declined 13.7% to 9,524 units in April 2016 over April 2015. The company announced the monthly sales volume data during market hours today, 2 May 2016.
IDFC shed 2.69% at Rs 43.40 after consolidated net profit dropped 65.86% to Rs 130.45 crore on 16.71% fall in total income to Rs 2151.79 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 29 April 2016. IDFC said that pursuant to order of the Madras High Court dated 25 June 2015 approving the scheme of arrangement between the company and IDFC Bank and their respective shareholders and creditors and on receipt of final banking licence by IDFC Bank for commencement of banking operations, the demerger has been recorded with effect from 1 October 2015. Post transfer of the financing undertaking to IDFC Bank, IDFC is mainly an investment company, with minimal operations. Accordingly, the results for Q4 March 2016 are not comparable with results of Q4 March 2015, IDFC said.
Oberoi Realty dropped 4.08% to Rs 267.95 after the company's consolidated net profit fell 37.34% to Rs 64.55 crore on 32.06% fall in total income to Rs 237.35 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 29 April 2016.
Oberoi Realty's board of directors at its meeting held on 29 April 2016, approved issue of non-convertible debentures upto an aggregate amount of Rs 1500 crore by way of private placement, in one or more offerings or tranches. The board also approved issue of equity shares and/or any other securities convertible into equity by way of one or more public offers or private placement, or both, for an aggregate amount not exceeding Rs 750 crore, including premium.
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