Markets stage a recovery; Nifty reclaims 8,600

Markets have recovered from day's lows with the Nifty reclaiming 8,600 mark in late trades.

At 3:29pm, the S&P BSE Sensex was down 48 points at 28,003. The Nifty 50 index was up 8 points at 8,646.

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(Updated at 1:20pm)

Benchmark share indices have pared early gains amid selling pressure at higher levels with L&T and ICICI Bank leading the decline.

At 1:20pm, the S&P BSE Sensex was down 153 points at 27,899. The Nifty 50 index was down 40 points at 8,598.

L&T and ICICI Bank were the top Sensex losers down over 2% amid weak June quarter results.

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(Updated at 11:20am)

A bout of volatility was witnessed in mid-morning trade as key benchmark indices trimmed gains after hitting intraday high in morning trade. At 11:20 AM, the barometer index, the S&P BSE Sensex was up 173.20 points or 0.64% at 28,231.51. The Nifty 50 index was currently up 56 points or 0.65% at 8,694.50.

Indian stocks rose today, 29 July 2016 as firmness in Asian stocks boosted sentiment. A private survey indicating an improvement in India's manufacturing activity in July also supported gains on the bourses.

The Sensex rose 232.99 points or 0.83% at the day's high of 28,284.85 in morning trade, its highest level since 10 August 2015. The barometer index gained 25.56 points or 0.09% at the day's low of 28,077.42 at the onset of trading session.

The Nifty rose 72.80 points or 0.84% at the day's high of 8,711.30 in morning trade, its highest level since 16 April 2015. The Nifty gained 12.30 points or 0.14% at the day's low of 8,650.80 at the onset of trading session.

In overseas stock markets, Asian shares rose as the chances of a US interest-rate increase diminished, after the nation's economic growth for the second quarter came in below expectations. The odds of a September US interest rate rise dropped to 12% from 18%, Fed Funds futures data showed, after the US economy grew at just 1.2% in the second quarter from a year earlier, well below estimates, data showed on Friday, 29 July 2016. Low US interest rates could support demand for emerging-market assets.

China's Shanghai Composite was down 1.47%. China's official manufacturing purchasing managers' index slipped below 50 in July, indicating a contraction in the nation's factory activity for the first time in five months, official data showed today, 1 August 2016.

The index fell to 49.9 in July from 50.0 a month ago. China's official nonmanufacturing purchasing managers' index, a gauge of activity outside factory floors, climbed to 53.9 in July from 53.7 in June, the National Bureau of Statistics said today, 1 August 2016. A reading above 50 indicates an expansion, while a figure below that level indicates a contraction.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,446 shares rose and 873 shares declined. A total of 119 shares were unchanged. The BSE Mid-Cap index was currently up 1.15%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.

Realty stocks rose. DLF (up 0.34%), D B Realty (up 0.85%), Sobha (up 0.09%), Indiabulls Real Estate (up 1.36%), Unitech (up 1.95%), NBCC (up 0.57%), Godrej Properties (up 0.39%), Housing Development & Infrastructure (HDIL) (up 1.37%), and Oberoi Realty (up 0.81%) edged higher.

The BSE Realty index had outperformed the market over the past one month till 29 July 2016, rising 7.35% compared with 4.9% rise in the Sensex. The index had also outperformed the market in past one quarter, advancing 18.45% as against Sensex's 9.55% rise.

Auto stocks gained after the PSU OMCs reduced fuel prices. Mahindra & Mahindra (M&M) (up 0.96%), Ashok Leyland (up 1.62%), Bajaj Auto (up 2.64%), Hero MotoCorp (up 1.09%), Tata Motors (up 2.12%) and TVS Motor Company (up 1.73%) gained.

Maruti Suzuki India gained after reporting good sales in July. The stock gained 2.08% to Rs 4,853.95. The company's total sales rose 12.7% to 1.37 lakh units in July 2016 over July 2015. Domestic sales rose 13.9% to 1.25 lakh units in July 2016 over July 2015. Exports rose 0.3% to 11,338 units in July 2016 over July 2015. The announcement was made during market hours today, 1 August 2016.

Eicher Motors rose 0.78% after the company's total motorcycles sales rose 31% to 53,378 units in July 2016 over July 2015. Exports rose 40% to 1,250 units in July 2016 over July 2015. The announcement was made during market hours today, 1 August 2016.

The BSE Auto index had outperformed the market over the past one month till 29 July 2016, rising 8.31% compared with 4.9% rise in the Sensex. The index had also outperformed the market in past one quarter, advancing 14.19% as against Sensex's 9.55% rise.

Public sector oil marketing companies (PSU OMCs) cut petrol prices by Rs 1.42 a litre and diesel by Rs 2.01 per litre in Delhi (including state levies) with corresponding price revision in other states. The price changes were effective from today, 1 August 2016. Petrol will cost Rs 61.09 a litre in Delhi as compared to Rs 62.51 a litre earlier. Similarly, diesel will cost Rs 52.27 per litre as against Rs 54.28 earlier.

Nestle India fell 1.33% after the company announced Q2 results after market hours on Friday, 29 July 2016. Nestle India reported net profit of Rs 230.84 crore in Q2 June 2016 as against net loss of Rs 64.40 crore in Q2 June 2015. Net sales rose 16.66% to Rs 2256.09 crore in Q2 June 2016 over Q2 June 2015. Results for the quarter and half year ended 30 June 2016 are not entirely comparable with the results of the corresponding periods due to Maggi noodles issue in 2015, the company said in a statement. The company said its net sales jumped on a base impacted by Maggi noodles issue in 2015. The company's domestic sales increased by 17.5% and exports increased by 7% in Q2 June 2016 over Q2 June 2015.

Nestle relaunched Maggi noodles in the market at the beginning of November 2015 after withdrawing the product from the market in June 2015 amid allegations that it contained high levels of lead.

KEC International rose 2.26% after consolidated net profit rose 83.2% to Rs 30.94 crore on 7% fall in net sales to Rs 1727.01 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016. KEC International's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.3% to Rs 149.60 crore in Q1 June 2016 over Q1 June 2015. Consolidated EBITDA margin improved to 8.4% in Q1 June 2016 from 7.3% in Q1 June 2015. The company's order book stood at above Rs 10400 crore, KEC International said.

Shares of Advanced Enzyme Technologies were trading at Rs 1,234.50 on BSE, a premium of 37.76% over the initial public offer price of Rs 896. The stock debuted at Rs 1210, a premium of 35.04% to the initial public offer (IPO) price. So far the stock hit a high of Rs 1,242.75 and low of Rs 1,200. On BSE, 6.45 lakh shares were traded on the counter. AETL is the largest Indian enzyme company engaged in the research & development, manufacturing and marketing of more than 400 proprietary enzyme products developed from 60 indigenous enzymes.

AETL ranks among the top 15 global companies in terms of enzyme sales and has the second highest market share domestically, next only to the world's largest enzyme company Novozymes. AETL is an integrated company with presence across the enzyme value chain, covering the entire range of activities from research & development, commercial-scale manufacturing, to marketing of enzyme products and customized enzyme solutions which enables AETL to be cost effective and competitive.

Meanwhile, Markit Economics said today, 1 August 2016, that the performance of India's manufacturing economy continued to improve in July, with a stronger expansion in new business contributing to faster increases in output and buying levels. Posting a four-month high of 51.8 in July from a reading of 51.7 in June, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index–a composite single-figure indicator of manufacturing performance–indicated a further improvement in overall business conditions across the sector.

Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for this week.

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