Markets hit day’s high amid positive opening in European counterparts

Indian equity benchmarks hit fresh intraday highs in late afternoon session, following a positive opening in European markets.  Traders took encouragement with Union minister Suresh Prabhu’s statement that  the Commerce and Industry Ministry will soon bring in a policy framework for facilitating access to global markets for the Indian agriculture produce. Heavy buying at Consumer Durables, Energy and Realty counters, also added some gains. Besides, Prime Minister Narendra Modi’s statement at BRICS Summit 2017 that India is fast changing into one of the most open economies in the world, with improvements on global indices and the biggest ever reform GST weaving the nation into one unified market, continued to support the sentiments from the morning. On the sectoral front, most of the cement stocks were trading in green, as the companies have raised the cement prices by up to Rs 27 per 50 kg bag in Mumbai.

On the global front, European markets were trading in green as investors brushed off lingering geopolitical concerns and directed their attention to deal-making. Asian markets were also trading in green. Back home, in scrip specific development, Transchem traded jubilantly after the company received an approval to provide inter corporate loan to one or more entity who is not related party for aggregate amount not exceeding 60% of the paid-up capital and free reserves of the company at rate not being less than prevailing government security rate and constitutes a committee to decide on the matter. The board of directors at its meeting held on September 4, 2017 has approved for the same.

The BSE Sensex is currently trading at 31842.93, up by 140.68 points or 0.44% after trading in a range of 31674.23 and 31846.25. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.47%, while Small cap index was up by 0.98%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.98%, Energy up by 1.34%, Realty up by 1.21%, Oil & Gas up by 1.10% and Basic Materials up by 1.00%, while Telecom down by 1.81% and TECK down by 0.04% were the only losing indices on BSE.

The top gainers on the Sensex were Coal India up by 3.06%, Bajaj Auto up by 1.43%, Reliance Industries up by 1.34%, ONGC up by 1.08% and Asian Paints up by 1.07%. On the flip side, Bharti Airtel down by 2.38%, Tata Motors - DVR down by 0.95%, Sun Pharma down by 0.82%, Mahindra & Mahindra down by 0.30% and Lupin down by 0.29% were the top losers.

Meanwhile, impacted for the second successive month by the goods and services tax (GST), India’s services sector registered another monthly decline in activity in August. Though, the seasonally adjusted Nikkei Services Business Activity Index rose to 47.5 in August from 45.9 in July, the reading was below the watershed ‘50’ mark which means contraction, mainly due to second consecutive drop in new business. The Nikkei India Composite PMI Output Index which measures both manufacturing and services stood at 49.0 in August as against 46.0 in July, with a weaker pace of reduction that was only slight.

As per survey report, the rate of contraction was less severe in August month compared to the previous month. It said that the rebound from July’s downturn in manufacturing production was unable to offset the contraction in services activity. Private sector output witnessed subsequent declined again, while new business also mirrored trend of services activity, decreasing for the second month in a row but at a slower rate.  Besides, the decline in employment continued for the second straight month amid evidence of the non replacement of voluntary leavers.

On the inflation front, input costs rose at a quicker rate, while output charge inflation softened from July’s 53-month peak in August. In the manufacturing industry, purchase prices increased at the slowest pace in one year. The report further said that service providers’ outstanding business volumes increased due to delayed payments from clients. Payroll numbers in the service economy decreased in August, the decline in employment was the second in successive months, but job shedding eased to a marginal pace as the vast majority of service providers left headcounts unchanged.

The CNX Nifty is currently trading at 9952.20, up by 39.35 points or 0.40% after trading in a range of 9901.05 and 9955.50. There were 33 stocks advancing against 17 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Coal India up by 2.82%, Tech Mahindra up by 2.76%, Ultratech Cement up by 2.40%, Ambuja Cement up by 2.01% and ACC up by 1.94%. On the flip side, Bharti Airtel down by 2.50%, Bharti Infratel down by 2.22%, Sun Pharma down by 0.96%, Tata Motors - DVR down by 0.89% and Aurobindo Pharma down by 0.74% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 1.09 points or 0% to 27,741.35, Shanghai Composite increased 4.73 points or 0.14% to 3,384.32, Jakarta Composite increased 5.04 points or 0.09% to 5,818.78 and Taiwan Weighted increased 47.97 points or 0.45% to 10,617.84. On the flip side, Nikkei 225 decreased 122.44 points or 0.63% to 19,385.81, FTSE Bursa Malaysia KLCI decreased 6.75 points or 0.38% to 1,766.41 and KOSPI Index decreased 3.03 points or 0.13% to 2,326.62.

European markets were trading in green; France’s CAC increased 20.21 points or 0.4% to 5,124.18, UK’s FTSE 100 increased 25.38 points or 0.34% to 7,436.85 and Germany’s DAX increased 99.85 points or 0.83% to 12,202.06.