Sensex, Nifty hit fresh day’s high

Northward rally continued on the Dalal Street in late afternoon session, with both Sensex and Nifty hitting intraday fresh highs, aided by firm opening in European markets. Following the larger peers, the broader markets too maintained their gaining momentum in late noon deals. Strong Services PMI data coupled with heavy buying almost at all the sectoral indices boosted the domestic sentiments. The seasonally adjusted Nikkei Services Business Activity Index climbed to 54.2 in the month of July from 52.6 in June, registering its highest reading since October 2016. Meanwhile, the government is ready, if required, to make further changes to the Insolvency and Bankrutpcy Code. The markets participants paid no need towards Former Reserve Bank Governor C Rangarajan’s statement that the full implementation of recent hike in Minimum Support Prices (MSP) for some of the agricultural products may push financial system under stress. On the sectoral front, agri stocks remained in lime focused, after Agriculture Minister Radha Mohan Singh asked MPs to urge states to promote location specific Integrated Farming System (IFS) for achieving the goal of doubling farmers’ income by 2022.

On the global front, European markets were trading in green, even as trade worries persist and the Bank of England raised interest rates despite the risk of a possible no-deal Brexit. Investors awaited the US employment report for clues about the pace of interest rate rises. US employment is expected to increase by 190,000 jobs in July, while the unemployment rate is expected to edge down to 3.9%. Asian markets were trading mixed, after China's services sector continued to expand in July, albeit at a slower pace. The survey from Caixin showed that the PMI stood at 52.8, down from 53.9 in the previous month as new orders expanded at their weakest rate in more than two and a half years. Back home, in scrip specific development, Rajesh Exports gained the traction after receiving a prestigious order for gold and diamond jewellery for a value of Rs 892 crore from a leading wholesaler and stockiest of Middle East for further distribution to the global markets.

The BSE Sensex is currently trading at 37567.09, up by 401.93 points or 1.08% after trading in a range of 37319.61 and 37567.47. 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 0.92%, while Small cap index was up by 1.12%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.79%, Bankex up by 1.40%, Healthcare up by 1.29%, Metal up by 1.02% and Utilities up by 0.95%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Axis Bank up by 3.76%, Vedanta up by 3.34%, Yes Bank up by 2.76%, HDFC up by 2.16% and ICICI Bank up by 2.10%. On the flip side, Asian Paints down by 0.67%, Tata Motors - DVR down by 0.59%, Indusind Bank down by 0.57%, HDFC Bank down by 0.42% and Tata Motors down by 0.33% were the top losers.

Meanwhile, maintaining expansion mode for the second straight month, the seasonally adjusted Nikkei Services Business Activity Index climbed to 54.2 in the month of July from 52.6 in June, registering its highest reading since October 2016. Improved demand conditions along with pickup in employment levels helped bolster business activity. Besides, the Nikkei India Composite PMI Output Index which measures both manufacturing and services too jumped to 54.1 in July from 53.3 in June.

As per the survey report, new business inflows rose in the reported month at fastest pace since June 2017, on the back of strong market demand. It also said that increased output requirements led to strongest job creation since April. Besides, business confidence towards the 12-month outlook picked up from June’s recent low, with improved demand conditions.

On the price front, input cost inflation in the service sector surged for the twenty third consecutive month during July month, amid higher food and fuel prices, while input cost inflation across the manufacturing sector eased from June’s near four year high and was in line with the series trend. Further, the report found that output charge inflation at services firms rose but at the slowest pace since March 2017, as firms couldn’t fully pass on greater cost burdens to price-sensitive clients.

The CNX Nifty is currently trading at 11353.50, up by 108.80 points or 0.97% after trading in a range of 11294.55 and 11355.05. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 6.04%, Axis Bank up by 4.05%, Vedanta up by 3.27%, Lupin up by 3.14% and Yes Bank up by 2.78%. On the flip side, Tech Mahindra down by 1.22%, Grasim Industries down by 0.81%, Asian Paints down by 0.62%, Indusind Bank down by 0.58% and HDFC Bank down by 0.50% were the top losers.

Asian markets were trading mixed; Straits Times decreased 11.83 points or 0.36% to 3,274.49, Jakarta Composite fell 13.73 points or 0.23% to 5,997.99, Shanghai Composite lost 26.94 points or 0.98% to 2,741.08 and Hang Seng was down by 38.24 points or 0.14% to 27,676.32. On the flip side, Taiwan Weighted increased 82.66 points or 0.75% to 11,012.43, KOSPI rose 17.48 points or 0.76% to 2,287.68 and Nikkei 225 was up by 12.65 points or 0.06% to 22,525.18.

All European markets were trading in green; UK’s FTSE 100 increased 31.20 points or 0.41% to 7,607.13, France’s CAC gained 14.08 points or 0.26% to 5,475.06 and Germany’s DAX was up by 67.72 points or 0.54% to 12,614.05.