Key benchmark indices edged higher in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 34.52 points or 0.12% at 28,486.69. The Nifty 50 index was currently up 6.10 points or 0.07% at 8,792.30. Auto and consumer durables stocks led gains on the bourses.
In overseas stock markets, Asian stocks were mixed as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.
US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 834 shares rose and 486 shares declined. A total of 56 shares were unchanged. The BSE Mid-Cap index was currently up 0.27%. The BSE Small-Cap index was currently up 0.26%. Both these indices outperformed the Sensex.
Tata Motors (up 1.08%), ITC (up 0.92%) and Hero MotoCorp (up 0.88%) were among the major gainers from the Sensex pack.
Tata Power Company rose 2.3% after the company announced that the company operating through its Strategic Engineering Division (SED), has signed a letter of intent (LOI) with Javelin Joint Venture team, a partnership between Raytheon and Lockheed Martin, to explore co-development and production of the Javelin anti-armour missile system. As part of the LOI, the Javelin Joint Venture (JVV) and Tata Power Company SED will create a strategy to co-develop and produce Javelin missile system and integrate platform mounts to meet Indian requirements. This includes ground combat vehicles, dismounted infantry and rotorcraft applications, Tata Power Company said. The announcement was made after market hours yesterday, 31 August 2016.
HDFC rose 0.56% after the company said that pursuant to the approval of the board of directors of the company at a meeting held on 31 August 2016 the company is contemplating, subject to market conditions, undertaking the third issuance of Rupee denominated bonds to overseas investors amounting to Rs 1000 crore. Issue opens on 1 September 2016 and closes on 2 September 2016. The announcement was made before market hours today, 1 September 2016
On macro front, India's Gross Domestic Product (GDP) growth slowed down to 7.1% in Q1 June 2016, as against 7.9% in Q4 March 2016 and 7.5% increase in Q1 June 2015.
Another data showed the index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015, while its cumulative growth stood at 4.9% in April to July 2016. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 37.9% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.
Markit Economics will announce India Manufacturing PMI index for August 2016 today, 1 September 2016.
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