Sensex, Nifty regains momentum in late session of trade

Indian equities regained momentum in the late afternoon session on back of buying in Auto, Metal and FMCG counters. Sentiment remained upbeat with the India’s manufacturing activity expanded at its fastest pace in 13 months in August, with pickup in demand from domestic and external markets. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 52.6 in August from 51.8 in July. Investor also took  some support with the India Inc expects economy to grow at a healthier pace in coming quarters on the back of a good monsoon even as a pick-up in investments remains elusive. However, the sentiment were somewhat subdued after data released late on Wednesday showed India's economy grew at a much lower-than-expected 7.1 per cent in the April-June quarter, its slowest pace in 15 months. On global front, European stocks were trading higher on Thursday as investors reacted to a rebound in oil prices and fresh data from China.

Back home, on sectoral front, Auto makers’ extended recent gains, with Tata Motors and Mahindra & Mahindra gained over 1 per cent each on expectations of rising sales. In scrip specific development, Bharti Airtel and Idea cellular slumped after Rel Jio unveiled plans to offer free local voice calls on its mobile network.

The BSE Sensex is currently trading at 28498.14, up by 45.97 points or 0.16% after trading in a range of 28414.40 and 28543.69. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.08%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Auto up by 0.69%, Metal up by 0.65%, Bankex up by 0.63%, FMCG up by 0.49% and PSU up by 0.19%, while Realty down by 1.84%, TECK down by 0.99%, Capital Goods down by 0.40%, Oil & Gas down by 0.39% and Power down by 0.30% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 2.06%, ICICI Bank up by 1.88%, Tata Steel up by 1.54%, Coal India up by 1.36% and Mahindra & Mahindra up by 1.35%. On the flip side, Bharti Airtel down by 6.40%, Wipro down by 1.66%, Reliance Industries down by 1.06%, Adani Ports &Special down by 0.78% and Power Grid down by 0.54% were the top losers.

Meanwhile, India’s eight core sector growth slowed to 3.2% in July, 2016, as compared to 5.2% in June, 2016, due to monsoon that hit output in sectors such as cement. However, it was higher as compared to the Index of July, 2015, mainly because of improvement in performance of energy sector, especially refinery output. The Eight Core Industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) showed a cumulative growth of 4.9% during April to July, 2016-17.

As per the data of Ministry of Commerce & Industry, the combined Index of Eight Core Industries stood at 173.7 in July, 2016, 3.2 per cent higher compared to the index of July, 2015. Among the eight sectors that make up the core sector, Petroleum Refinery production having weight of 5.94%, increased by 13.7% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 increased by 8.7 % over the corresponding period of previous year. Coal production having weight of 4.38% increased by 5.1% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 increased by 5.3% over corresponding period of previous year. The Natural Gas production having weight of 1.71%, increased by 3.3% in July, 2016 over July, 2015, while its cumulative index during April to July, 2016-17 declined by 3.8 % over the corresponding period of previous year. Fertilizer production having weight of 1.25% increased by 2.5% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 increased by 8.6 % over the corresponding period of previous year. Electricity having weight of 10.32% increased by 1.6% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 increased by 7.1% over the corresponding period of previous year. Cement production having weight of 2.4% increased by 1.4% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 increased by 4.6% over the corresponding period of previous year.

On other hand, Crude Oil production having weight of 5.22% decreased by 1.8% in July, 2016 over July, 2015. Its cumulative index during April to July, 2016-17 decreased by 2.9% over the corresponding period of previous year. Steel production having weight of 6.68% decreased by 0.5% in July, 2016 over July, 2015, while its cumulative index during April to July, 2016-17 increased by 2.8% over the corresponding period of previous year.

The CNX Nifty is currently trading at 8795.35, up by 9.15 points or 0.10% after trading in a range of 8770.60 and 8813.05. There were 30 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.06%, Mahindra & Mahindra up by 1.66%, ICICI Bank up by 1.65%, Tata Steel up by 1.61% and Coal India up by 1.42%. On the flip side, Idea Cellular down by 9.63%, Bharti Airtel down by 6.45%, BPCL down by 2.56%, Wipro down by 1.80% and Aurobindo Pharma down by 1.69% were the top losers.

Asian market were trading mostly in red; Taiwan Weighted decreased 67.7 points or 0.75% to 9,001.15, Jakarta Composite decreased 58.72 points or 1.09% to 5,327.36, Shanghai Composite decreased 22.19 points or 0.72% to 3,063.31, FTSE Bursa Malaysia KLCI decreased 7.32 points or 0.44% to 1,670.74 and KOSPI Index decreased 1.93 points or 0.09% to 2,032.72. On other hand, Nikkei 225 increased 39.44 points or 0.23% to 16,926.84 and Hang Seng increased 185.46 points or 0.81% to 23,162.34.

European markets were trading in green; UK’s FTSE 100 increased 38.57 points or 0.57% to 6,820.08, France’s CAC increased 39.61 points or 0.89% to 4,477.83 and Germany’s DAX increased 50.23 points or 0.47% to 10,642.92.