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Tyre stocks in limelight

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Key benchmark indices traded near the flat line in afternoon trade. At 13:20 IST, the barometer index, the S&P Sensex, was up 0.27 points at 32,325.68. The index was up 6.85 points or 0.07% at 10,073.25. Firmness in global stocks kept sentiments positive. Indices traded in a narrow range around the flat line so far during the session.

Trading for the week kicked-off on a positive note as domestic stocks drifted higher in early trade in sync with Asian stocks. Volatility hit bourses in morning trade as indices regained positive zone soon after erasing early gains to hit intraday low in negative zone. Stocks extended gains and hit fresh intraday high in mid-morning trade. Indices hovered near the flat line after paring gains in early afternoon trade.

The S&P Mid-Cap index was up 0.91%. The S&P Small-Cap index was up 1%. Both these indices outperformed the

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,488 shares rose and 945 shares fell. A total of 137 shares were unchanged.

Hindalco Industries rose 0.42% after the company said that its board of directors in a meet on 11 August, 2017 will consider to avail not exceeding Rs 2400 crore working capital facility by way of commercial papers and unsecured debentures etc for aluminium business subject to necessary approval.

The board will also consider to avail not exceeding Rs 2000 crore working capital facility by way of commercial papers and unsecured debentures etc for copper business subject to necessary approval. The announcement was made during market hours today, 7 August 2017.

Tata Steel rose 3.81% ahead of the company's Q1 June 2017 results scheduled today, 7 August 2017. A domestic brokerage expects Tata Steel to report turnaround in bottom line in Q1 June 2017 on a consolidated basis, compared with year ago quarter. Another domestic brokerage expects Tata Steel numbers in Q1 June 2017 to be sequentially weaker due to lower steel prices and higher coking coal costs.

Auto stocks were mixed. Ashok Leyland (up 1.83%), Eicher Motors (up 1.28%), Bajaj Auto (up 0.01%), and TVS Motor Company (up 0.72%) gained. Mahindra & Mahindra (M&M) (down 0.66%), Hero MotoCorp (down 0.37%) and Tata Motors (down 1.72%) declined.

Maruti Suzuki India rose 1.16% after the company announced that its total production rose 14.78% to 1.56 lakh units in July 2017 over July 2016. The announcement was made after market hours on Friday, 4 August 2017.

Tyre stocks rose after reports suggested that the Directorate General of Anti-Dumping and Allied Duties (DGAD) is in talks with the Finance Ministry for the imposition of anti-dumping duty on truck and bus radial tyres (TBR) imports from China.

Apollo Tyres (up 7.97%), JK Tyre & Industries (up 3.19%), MRF (up 1.91%) and CEAT (up 3.04%) gained. Goodyear India declined 0.19%. The authority has submitted a report to the Finance Ministry which will take the final decision soon.

Eros International Media rose 4.57% on reports the company is in talks with US-based Apple Inc to sell its entire library of films and music for about $1 billion. A deal may also include their digital over-the-top (OTT) platform, Eros Now.

Parallel discussions with rival media and technology majors Amazon and Netflix have also gathered momentum, the report said, adding that the Eros Group is planning to embark on a mega restructuring exercise that is likely to result in a reverse merger of its New York Stock Exchange (NYSE) listed parent Eros International Plc into its locally listed subsidiary Eros International Media by the end of this financial year to create a single listed firm.

Nagarjuna Agrichem lost 4.86% after net profit fell 12.2% to Rs 1.80 crore on 3.8% growth in net sales to Rs 162.75 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 5 August 2017.

Overseas, European stocks edged higher in early trade and Asian markets gained after strong US hiring data bolstered optimism about economic growth in the world's largest economy. Industrial output in Europe's largest economy, Germany surprisingly fell at the end of the second quarter, data from the country's Economics Ministry showed. In adjusted terms, output declined by 1.1% in June, marking the index's first monthly decline since last December.

US stocks closed higher on Friday, 4 August 2017 with the Dow ending at a record for an eighth straight session following a read on the labor market that came in above expectations, a sign that current valuations may be supported by current economic activity.

On the economic front in US, the July payrolls report showed the US created 209,000 new jobs in July. The government raised its estimate of new jobs created in June to 231,000 from 222,000. Separately, the unemployment rate moved to 4.3% from 4.4%, retouching a 16-year low. The data is seen as crucial for the Federal Reserve as it decides whether to raise interest rates one more time this year.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 07 2017. 13:17 IST