Firm trade continues at D-Street

Key Indian benchmarks continued to trade bullish in late afternoon session, with Consumer Durables shares leading the gains. The indices were trading with gains of more than half a percent, tracking higher opening in European markets. The market mood remained up as investors continued to take support from Finance Minister Arun Jaitley’s indication that the government would consider reducing the goods and services tax slabs and easing compliance burden for small taxpayers once revenues from GST better those from the previous tax regime. Adding some optimism, the private report stated that India is likely to be the world’s fastest-growing large economy in the next 10 years, driven by digitisation, favourable demographics, globalisation and reforms. Some support also came after manufacturing activity in India showed a modest improvement in September supported by increases in both output and new orders. The Nikkei India Manufacturing Purchasing Managers’ Index, or PMI, remained unchanged at 51.2 in September. Meanwhile, exports from special economic zones (SEZs) paced up 15.4% to Rs 1.35 lakh crore during the first quarter this fiscal.

On the global front, European markets were trading in green as political concerns eased slightly and investors focused on data releases. Asian markets were also trading in green. Back home, in scrip specific development, Coal India was trading higher after the company reported provisional production of 38.77 million tonnes (MT) in September 2017, as against a target of 38.32 MT. The company’s total off-take for the month of September stood at 43.58 MT, as against a target of 42.34 MT.

The BSE Sensex is currently trading at 31510.21, up by 226.49 points or 0.72% after trading in a range of 31440.48 and 31615.28. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.66%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.84%, Energy up by 1.28%, FMCG up by 1.07%, Auto up by 0.99%, Basic Materials up by 0.99%, while Power down by 0.48%, Capital Goods down by 0.25% and PSU down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 5.17%, Tata Motors up by 4.16%, Asian Paints up by 2.21%, Reliance Industries up by 2.19% and Bajaj Auto up by 2.03%. On the flip side, Power Grid Corporation down by 2.04%, SBI down by 1.02%, Maruti Suzuki down by 0.92%, Larsen & Toubro down by 0.56% and Bharti Airtel down by 0.42% were the top losers.

Meanwhile, indicating modest improvement in manufacturing sector’s business condition, India Manufacturing Purchasing Managers’ Index (PMI)-a composite single-figure indicator of manufacturing performance- remained unchanged for the month of September at 51.2. However, the reading signaled an expansion for the second consecutive month, remaining above the no-change mark of 50.0.

As per the report, the expansion in manufacturing activity of the country was on account of increase in output and new orders. However, the expansion rate remained weak in both cases, by easing slightly. Inflows of new orders increased for the second month in succession during September. The rate of growth softened from the preceding month and was marginal overall. The survey data further showed that Indian manufacturers raised their staffing levels at the fastest pace since October 2012 on the back of more new work orders, while noting decrease in new export orders.

On the inflation front, the report said that even if cost pressure intensified during September month due to Goods and Services Tax (GST) and greater prices for steel and petroleum products, inflation was modest, remaining below the long-run series average. Further, in order to protect margins amid higher inflationary pressures, firms raised their selling prices but at a marginal pace as amid competitive conditions, they couldn’t increase the prices more.

The CNX Nifty is currently trading at 9855.20, up by 66.60 points or 0.68% after trading in a range of 9831.05 and 9895.40. There were 37 stocks advancing against 13 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Tata Motors up by 4.01%, GAIL India up by 3.57%, Bharti Infratel up by 2.54%, Reliance Industries up by 2.39% and Aurobindo Pharma up by 2.12%. On the flip side, Power Grid Corporation down by 2.30%, SBI down by 1.00%, Maruti Suzuki down by 0.88%, Cipla down by 0.67% and Larsen & Toubro down by 0.64% were the top losers.

Asian markets were trading in green; Taiwan Weighted increased 4.19 points or 0.04% to 10,469.35, FTSE Bursa Malaysia KLCI increased 4.89 points or 0.28% to 1,759.67, Jakarta Composite increased 31.43 points or 0.53% to 5,945.46, Nikkei 225 increased 213.29 points or 1.05% to 20,614.07 and Hang Seng increased 618.91 points or 2.25% to 28,173.21.

European markets were trading mostly in green; France’s CAC increased 8.28 points or 0.15% to 5,358.72 and Germany’s DAX increased 73.79 points or 0.58% to 12,902.65. On the flip side, UK’s FTSE 100 decreased 0.92 points or 0.01% to 7,437.92.