Sensex, Nifty add gains to reach day’s high

Indian benchmark Indices added gains in late afternoon session to reach at their intraday high points, aided by firm European markets. Healthcare, Power and Energy stocks were contributing most to the market’s rally, while the broader markets too maintain positive trade in late noon deals. Optimism remained among the investors with a private report stating that Corporate India announced merger and acquisition (M&A) deals worth $34.8 billion during April-June this year, registering nearly 7-fold jump over the same period last year. Some support also came with a another private report that companies are willing to raise their staff level, and the pace of hiring is expected to be faster than last year, riding high on strong demand conditions. Adding some comfort, Finance Ministry simplified GST refund claim process for businesses. In scrip specific development, Karnataka Bank was trading higher after the bank received an approval for the proposal for augmenting the capital funds of the Bank through issue of Non Convertible lower Tier 11 subordinated Bonds in accordance with the RBI's New Capital Adequacy Framework Guidelines to the tune of Rs 800 crore in one or more tranches under private placement basis.

On the global front, European markets were trading in green, as the euro area private sector expanded slightly more than initially estimated in August. The final data from IHS Markit showed that the composite output index rose to 54.5 in August from July's 54.3. Besides, UK services sector expanded at a faster pace in August on stronger new orders. As per survey data from IHS Markit, the IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 54.3 from 53.5 in July. The indicator has reached its second-highest level since February. Asian markets were trading in red, as public consultations come to a close on possible new US tariffs on Chinese products worth $200 billion. If the US goes ahead with the tariffs, China is likely to retaliate in a tit-for-tat trade war.

The BSE Sensex is currently trading at 38240.41, up by 222.10 points or 0.58% after trading in a range of 37912.50 and 38242.68. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.24%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.09%, Energy up by 1.57%, Power up by 1.36%, Utilities up by 1.23% and Oil & Gas up by 0.85%, while Telecom down by 0.41%, Consumer Disc down by 0.29% and Consumer Durables down by 0.11% were the few losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 2.80%, Reliance Industries up by 2.00%, Sun Pharma up by 1.94%, Kotak Mahindra Bank up by 1.81% and Coal India up by 1.77%. On the flip side, Maruti Suzuki down by 1.16%, Yes Bank down by 0.70%, Axis Bank down by 0.53%, Bharti Airtel down by 0.16% and TCS down by 0.08% were the top losers.

Meanwhile, in its further efforts to increase banking penetration and promote financial inclusion, the Union Cabinet has approved the continuation of National Mission for Financial Inclusion - Pradhan Mantri JanDhan Yojana (PMJDY).

The continuation of the flagship financial inclusion program would enable all adults/households of the country to have at least a basic bank account with access to other financial services, social security schemes and overdraft up to Rs 10,000.  It will, thus, bring them into the mainstream of financial services and will facilitate transfer of benefits of various subsidy schemes of the Government more efficiently.

According to the Union Cabinet decision, overdraft facility limit for the accounts opened under the new scheme will be raised to Rs 10,000 and there will not be any conditions attached for overdraft up to Rs 2,000. Further, age limit for availing of the overdraft has also been revised from 18-60 years to 18-65 years.

The CNX Nifty is currently trading at 11533.10, up by 56.15 points or 0.49% after trading in a range of 11436.05 and 11539.00. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Cipla up by 2.40%, Power Grid Corporation up by 2.35%, Reliance Industries up by 2.16%, Sun Pharma up by 1.96% and Kotak Mahindra Bank up by 1.83%. On the flip side, Zee Entertainment down by 4.74%, Hindalco down by 1.42%, Maruti Suzuki down by 1.31%, Bajaj Finance down by 0.96% and Axis Bank down by 0.73% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 70.83 points or 0.65% to 10,924.30, Hang Seng decreased 269.03 points or 1% to 26,974.82, Shanghai Composite fell 12.75 points or 0.47% to 2,691.59, KOSPI plunged 4.16 points or 0.18% to 2,287.61, Straits Times dipped 14.07 points or 0.45% to 3,142.21 and Nikkei 225 was down by 92.89 points or 0.41% to 22,487.94. On the flip side, Jakarta Composite increased 79.15 points or 1.37% to 5,762.65.

All European markets were trading in green; UK’s FTSE 100 increased 6.16 points or 0.08% to 7,389.44, France’s CAC gained 13.60 points or 0.26% to 5,273.82 and Germany’s DAX was up by 27.88 points or 0.23% to 12,068.34.