Key benchmark indices hovered near the flat line in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex was down 0.40 points at 29,918. The Nifty 50 index was up 0.45 points or 0.01% at 9,304.80. The Sensex was trading below the psychological 30,000 level.
Earlier, the Sensex and the Nifty had slipped into the negative terrain in mid-morning trade after hovering in positive zone till morning trade as Markit data on India's manufacturing sector in April disappointed investors. Later, indices had pared intraday losses to regain positive terrain in afternoon trade albeit with small gains, tracking higher European indices.
The BSE Mid-Cap index rose 0.04%. The BSE Small-Cap index rose 0.2%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,479 shares declined and 1,292 shares rose. A total of 155 shares were unchanged.
FMCG stocks declined. Britannia Industries (down 1.66%), Hindustan Unilever (down 0.77%), Colgate-Palmolive (India) (down 0.72%), Godrej Consumer Products (down 0.55%), Dabur India (down 0.54%) and Procter & Gamble Hygiene and Health Care (down 0.24%) edged lower. Tata Global Beverages (up 2.81%) and Marico (up 0.95%) edged higher.
Metal and mining stocks declined on weak China manufacturing data. Steel Authority of India (down 2.4%), JSW Steel (down 1.61%), Vedanta (down 0.99%), Tata Steel (down 0.75%), Jindal Steel & Power (down 0.7%), National Aluminium Company (down 0.29%) and Hindustan Zinc (down 0.13%) edged lower. Hindalco Industries (up 0.35%), Hindustan Copper (up 0.3%) and NMDC (up 0.12%) edged higher.
Latest data showed that China's nationwide factory activity expanded at a slower pace in April, with a private gauge falling to a seven-month low. China is the world's largest consumer of steel, copper and aluminum.
Ashok Leyland fell 2.46% after the company's total sales declined 30% to 7,083 units in April 2017 over April 2016. Sales of light commercial vehicles (LCV) rose 11% to 2,558 units in April 2017 over April 2016. Sales of medium & heavy commercial vehicles (M&HCV) dropped 43% to 4,525 units in April 2017 over April 2016. The announcement was made during trading hours today, 2 May 2017.
On the macro front, Markit Economics in a press release issued during market hours today, 2 May 2017, said that manufacturing conditions in India improved for the fourth straight month in April. However, the headline Nikkei India Manufacturing Purchasing Managers' index (PMI) remained unchanged at 52.5 in April as in March.
Meanwhile, the combined index of eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) stood at 202.9 in March 2017, which was 5% higher compared to the index of March 2016. The data was released by the government yesterday, 1 May 2017.
Overseas, European stocks edged higher as investors returned from a May holiday weekend. Most Asian stocks gained after resumption of trading at major stock exchanges after being shut for a public holiday on Monday, 1 May 2017.
China's nationwide factory activity expanded at a slower pace in April, with a private gauge falling to a seven-month low. The Caixin China manufacturing purchasing managers' index dropped to 50.3 in April from 51.2 in March, indicating a slower expansion of activity, Caixin Media Co. and research firm Markit said today, 2 May 2017.
The softer Caixin PMI reading comes after a moderation in a competing government gauge. China's official manufacturing PMI fell to a six-month low of 51.2 in April compared with 51.8 in March, the National Bureau of Statistics said on Sunday, 30 April 2017.
US stocks closed slightly higher on Monday, 1 May 2017, shaking off comments from President Donald Trump about breaking up the big banks.
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