Indices continue to trade on positive note; Sensex, Nifty off day’s high

Indian equity indices continued to trade in green terrain in the early noon session on account of robust GDP data and strengthening of rupee from all-time low. Buying in Healthcare, Consumer Durables and Industrials stocks helped indices to continue trading in positive terrain. Some support also came in with report highlighting that foreign investors have infused over Rs 5,100 crore into the country’s capital market in August -- the second consecutive month of inflow -- on improvements on the macro front, better corporate earnings and correction in the mid and small-cap space. However, markets trimmed initial gains to come off their day’s high as traders turned cautious with report showing that growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened. Besides, selling in Realty, Utilities and Power stocks were keeping a lid on the gains. 

On the global front, all the Asian markets are trading under pressure, as trade-war fears increased after the U.S. and Canada missed a deal deadline set for Friday and uncertainty rose about escalating tariffs between the U.S. and China. Back home, RBI data showed that India Inc raised $2.18 billion from overseas markets in July through external commercial borrowing, up 74 per cent from a year ago. Besides, in scrip specific development, Coal India rose on reporting 38.80 MT of coal production in August and NCC gained on bagging four orders worth Rs 3592.5 crore in August 2018.

The BSE Sensex is currently trading at 38700.85, up by 55.78 points or 0.14% after trading in a range of 38671.33 and 38934.35. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.65%, while Small cap index up by 0.64%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.42%, Consumer Durables up by 1.02%, Industrials up by 0.91%, Capital Goods up by 0.90% and IT up by 0.85%, while Realty down by 0.47%, Utilities down by 0.46%, Power down by 0.28%, Bankex down by 0.16% and Energy down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 4.43%, Sun Pharma up by 2.20%, Adani Ports up by 1.40%, Bajaj Auto up by 1.23% and Infosys up by 1.04%. On the flip side, NTPC down by 1.67%, Hindustan Unilever down by 1.44%, Maruti Suzuki down by 1.35%, Kotak Mahindra Bank down by 1.16% and ICICI Bank down by 0.86% were the top losers.

Meanwhile, India’s core sector output grew at a slower pace of 6.6% in July 2018, from 7.6% in June 2018, on the back of sharp decline in crude oil and natural gas production. However, on a year-on-year basis, July’s growth was higher than the rise of 2.9 percent reported for the same period last year. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 128.4 in July, 2018, which was 6.6% higher compared to the index of July, 2017. Its cumulative growth during April to June, 2018-19 was 5.8%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). 

Among eight core sectors, Coal production having 10.33% weight rose 9.7% in July, 2018 over July, 2017, and its cumulative index increased by 12.3% during April to July, 2018-19 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight increased 12.3% in July, 2018 over July, 2017 and its cumulative index surged by 8.0% during April to July, 2018-19 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight declined by 5.2% in July, 2018 over July, 2017, and its cumulative index was down by 1.1% during April to July, 2018-19 over the corresponding period of previous year. On the flip side, Steel production having 17.92% weight jumped by 6.0% in July, 2018 over July, 2017 and its cumulative index increased by 3.2% during April to July, 2018-19 over the corresponding period of previous year.

Fertilizer production having 2.63% weight increased by 1.3% in July, 2018 over July, 2017, and its cumulative index rose by 3.7% during April to July, 2018-19 over the corresponding period of previous year. Cement production having 5.37% weight jumped 10.8% in July, 2018 over July, 2017 and its cumulative index increased by 14.7% during April to July, 2018-19 over the corresponding period of previous year. On the other hand, Crude Oil production having 8.98% weight declined by 5.4% in July, 2018 over July, 2017 and its cumulative index fell by 3.2% during April to July, 2018-19 over the corresponding period of previous year.

The CNX Nifty is currently trading at 11695.70, up by 15.20 points or 0.13% after trading in a range of 11680.65 and 11751.80. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Wipro up by 4.56%, Dr. Reddys Lab up by 3.57%, Titan Co up by 2.48%, Sun Pharma up by 2.21% and Lupin up by 2.21%. On the flip side, NTPC down by 2.04%, Hindustan Unilever down by 1.46%, Kotak Mahindra Bank down by 1.35%, Maruti Suzuki down by 1.34% and Ultratech Cement down by 1.18% were the top losers.

All the Asian counters were trading in red; Straits Times decreased 15.27 points or 0.48% to 3,198.21, Taiwan Weighted declined 99.72 points or 0.91% to 10,964.22, Hang Seng plunged 275.43 points or 1% to 27,613.12, Jakarta Composite slipped 48.27 points or 0.81% to 5,970.19, Shanghai Composite fell 19.89 points or 0.74% to 2,705.36, Nikkei 225 decreased 157.77 points or 0.69% to 22,707.38 and KOSPI was down 18.33 points or 0.8% to 2,304.55.