Market Live: Sensex hovers around 10500 ahead of MPC meet; Maruti at record high

11:05 am Factory data: Indian factory activity plunged last month and had its deepest contraction in more than nine years after Prime Minister Narendra Modi’s new tax policy severely hurt output and demand, a survey showed.

The Nikkei/IHS Markit Manufacturing Purchasing Managers’ Index fell to 47.9 in July from June’s 50.9, its first reading below the 50 mark that separates growth from contraction since December and its lowest reading since February 2009.

A Reuters poll predicted a modest July dip to 50.8. But July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis and brought on a global recession.

An output sub-index fell to 46.3, its lowest since early 2009, from 51.7 in June, while contractions were reported across all major sub-indexes in the survey, including new orders, purchasing activity and employment.

10:49 am Market Check: Equity benchmarks continued to be volatile in morning trade as investors awaited the interest rate decision from two-day Monetary Policy Committee meeting that started today.

The 30-share BSE Sensex was down 5.53 points at 32,509.41 and the 50-share NSE Nifty rose 4.10 points to 10,081.20.

The broader markets outperformed benchmarks, with the BSE Midcap up 0.4 percent. The market breadth was positive as about 1,122 shares advanced against 1,028 declining shares on the BSE.

10:25 am Auto sales: India’s largest car maker Maruti Suzuki reported solid growth of 20.6 percent in July sales, which was far ahead of analysts’ estimates.

“Maruti sold a total of 1.65 lakh units in July 2017, growing 20.6 percent over 1.37 lakh units sold in the same month of last fiscal,” the passenger vehicles maker said in its filing.

Domestic sales grew by 22.4 percent year-on-year to 1.54 lakh units while exports grew by 0.1 percent to 11,345 units in July.

The stock price touched a fresh record high of Rs 7,920, up 2.75 percent intraday Tuesday.

9:56 am IPO opens: Cochin Shipyard, India’s largest public sector shipyard, opened for subscription. The company intends to raise about Rs 1,400-1,500 crore through an initial public offering (IPO).

It plans to use the net proceeds for setting up of dry dock within the existing premise of the company (Rs 443 crore), setting up of an international ship repair facility at Cochin Port Trust area (Rs 229.5 crore) and general corporate purposes.

As of June 30, 2017, its total cash and bank balance stood at Rs.2,003 crore, while it had fund-based indebtedness in the form of tax-free infrastructure bonds amounting to Rs 123 crore.

9:45 am FII View: Neelkanth Mishra of Credit Suisse said all the 7 percent YoY spending growth budgeted in FY18 Budget is over.

Growth for the rest of the year should be flat YoY, he added.

Comparisons of tax versus Budget or YoY growth will be tougher from now, bringing some fiscal uncertainty, he feels. Even the feed into GDP will be disrupted, according to Mishra.

9:40 am Buzzing: Shares of Vascon Engineers advanced more than 4 percent in the early trade as the company received order worth Rs 80 crore.

“The company has received letter of award from Transcon Sheth Creators, a domestic entity, for the work of civil construction, finishing, electrical and fire fighting work of residential building No 3 and 4 (Ground plus 23 Floors) in Malad (W) amounting to Rs 80.41 crore,” as per company release.

The work has to be completed within 24 months from the date of receipt of work order.

The meeting of board of directors of company is scheduled on August 10 to consider, approve and take on record the unaudited financial results for the quarter ended June 30, 2017, along with other matters.

9:25 am Buyback: Share price of Sobha gained 3 percent in morning trade as the company is going to consider buyback of shares.

A meeting of the board of directors of the company is scheduled on August 04, to consider and take on record, the unaudited financial results of the company for the quarter ended June 30, 2017.

The board will also consider a proposal for buyback of equity shares of the company, for an aggregate amount up to Rs 62 crore.

9:15 am Market Check: Equity benchmarks opened moderately higher, with the Nifty inching towards 10,100 level as investors look for two-day monetary policy committee meeting that will being today.

The 30-share BSE Sensex was up 27.90 points at 32,542.84 and the 50-share NSE Nifty gained 13.20 points at 10,090.30.

Glenmark Pharma gained 1.6 percent but Biocon fell nearly 2 percent.

The Nifty Midcap was up 0.4 percent. About two shares advanced for every share falling on the NSE.
Container Corporation, BEL, JK Paper and Trent gained up to 10 percent while Siemens, Torrent Pharma, Reliance Power, Peninsula Land and Godrej Consumer were under pressure.