Key benchmark indices moved in a narrow range in negative zone in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was down 144.33 points or 0.56% at 25,462.29. The Nifty 50 index was currently down 39.35 points or 0.5% at 7,810.45. Data showing slowdown in growth in manufacturing sector in April 2016 and weakness in Japanese stocks weighed on the domestic bourses.
In overseas stock markets, Japanese stocks edged lower as the Japanese yen surged to 1-1/2-year high against the dollar. The Nikkei 225 Average ended 3.11% lower. 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. Many other Asian markets were closed today, 2 May 2016, for a holiday. Most European stocks rose as a sharp decline in the previous session prompted investors to look for bargains.
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.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,237 shares declined and 1,189 shares rose. A total of 134 shares were unchanged. The BSE Mid-Cap index was currently up 1.03%. The BSE Small-Cap index was currently up 0.35%. Both these indices outperformed the Sensex.
FMCG stocks were mostly higher. Dabur India (up 4.5%), Godrej Consumer Products (up 2.39%), Procter & Gamble Hygiene and Health Care (up 1.95%), Marico (up 1.28%), Colgate-Palmolive (India) (up 0.66%), Tata Global Beverages (up 0.54%), Britannia Industries (up 0.41%) and Bajaj Corp (up 0.23%) rose. Jyothy Laboratories (down 1.79%), GlaxoSmithkline Consumer Healthcare (down 2.01%), Hindustan Unilever (down 0.83%) and Emami (down 2.22%) declined.
Nestle India rose 0.65% at Rs 5,781.05 after the company announced that it has introduced NescafSunrise Insta-Filter - which provides the taste of filter coffee and yet does not require a filter, adding to the range of coffee and beverages. The announcement was made after market hours on Friday, 29 April 2016. The company has partnered with Snapdeal for an exclusive offering of this product starting 30 April 2016, it added.
Shares of oil exploration and production (E&P) firms edged higher. Cairn India (up 4.24%), Oil India (up 1.1%) and ONGC (up 0.41%) rose.
Index heavyweight Reliance Industries (RIL) was up 0.34% at Rs 985.90. The stock hit a high of Rs 992.50 and a low of Rs 977.05 so far during the day.
Shares of public sector oil marketing companies edged lower. BPCL (down 0.9%) and Indian Oil Corporation (IOCL) (down 1.37%) declined. HPCL (up 0.46%) edged higher. IOCL on Saturday, 30 April 2016, announced increase in the price of petrol and diesel with effect from the midnight of 30 April 2016. Petrol price was hiked by Rs 1.06 per litre and diesel price was raised by Rs 2.94 a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 62.19 per litre and diesel costs Rs 50.95 a litre.
In the global commodities markets, Brent for July settlement was currently down 50 cents at $46.87 a barrel. The contract had declined 40 cents or 0.83% to settle at $47.37 a barrel during the previous trading session.
Index heavyweight and housing finance major HDFC rose 0.39% to Rs 1,093 after net profit rose 39.98% to Rs 2607.05 crore on 23.72% growth in total income to Rs 9225.72 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 2 May 2016.
Shares of Shriram Transport Finance Company surged in the aftermath of the announcement of its Q4 March 2016 results. The stock was currently up 14.03% at Rs 1,076. Shriram Transport Finance Company's net profit fell 54.6% to Rs 143.92 crore on 26.2% rise in total income to Rs 2918.03 crore in Q4 March 2016 over Q4 March 2015. The result was announced at fag end of trading session on Friday, 29 April 2016, when the stock fell 2.28% to settle at Rs 943.60. Shriram Transport Finance Company said that the results of Q4 March 2016 includes figures of Shriram Equipment Finance Co which was amalgamated with the company with effect from 1 April 2015 and are therefore not comparable with results of Q4 March 2015.
The company's total assets under management rose 23.1% to Rs 72760.60 crore as at 31 March 2016 from Rs 59108.28 crore as at 31 March 2015.
Meanwhile, 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.
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