Sensex, Nifty remain strong in late afternoon

Key equity indices remained strong in late afternoon session, tracking firm European markets. Buying at almost in all the sectors except Telecom, aided support to the rally, while the broader markets were too performing best with the notable gains in late noon deals. Sentiments remained optimistic, as the Indian manufacturing sector strengthened further in the month of February, with a sharp and accelerated increase in sales boosting growth of output and employment. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - rose to 54.3 in February from 53.9 in January. Some comfort also came after Finance Minister Arun Jaitley expressed hopes that the remaining six public sector banks (PSBs) under the Reserve Bank of India’s (RBI) prompt corrective action (PCA) framework will soon come out of it with the government commitment of support to them.

On the sectoral front, sugar companies stocks were trading higher, after Indian Sugar Mills Association (ISMA) Director General Abinash Verma said that the government's decision to provide up to Rs 10,540 crore as soft loans to sugar mills will help them in clearing arrears of cane growers by about Rs 9,000 crore. Stocks related to the minerals and mining industry were buzzing, as the Union Cabinet approved National Mineral Policy 2019. The New National Mineral Policy will ensure more effective regulation. It will lead to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas.

On the global front, European markets were trading green, as Turkey's manufacturing activity was the strongest in six months in February, amid a slower decline in output and a rebound in new export orders as well as softer reduction in employment. The survey data from IHS Markit showed that the Istanbul Chamber of Industry Turkey Manufacturing Purchasing Managers' Index rose to a six-month high of 46.4 from 44.2 in January. Asian markets were also trading in green, after White House economic advisor Larry Kudlow said the US and China are making fantastic progress in their trade negotiations, with China expressing willingness to make key structural changes to prevent intellectual property theft.

The BSE Sensex is currently trading at 36053.60, up by 186.16 points or 0.52% after trading in a range of 35952.41 and 36140.67. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.24%, while Small cap index was up by 1.95%.

The top gaining sectoral indices on the BSE were PSU up by 1.67%, Metal up by 1.58%, Industrials up by 1.57%, Basic Materials up by 1.47% and Capital Goods up by 1.27%, while Telecom down by 0.99% was the lone losing index on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 3.37%, Tata Motors up by 2.87%, Yes Bank up by 2.77%, Indusind Bank up by 2.75% and Vedanta up by 2.30%. On the flip side, Bharti Airtel down by 3.13%, Bajaj Auto down by 0.98%, Asian Paints down by 0.78%, Axis Bank down by 0.76% and Reliance Industries down by 0.51% were the top losers.

Meanwhile, coming at a 14-month high, the Indian manufacturing sector strengthened further in the month of February, with a sharp and accelerated increase in sales boosting growth of output and employment. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - rose to 54.3 in February from 53.9 in January. The manufacturing sector activity expanded for the 19th consecutive month as the PMI reading stood above the watershed 50 mark, which differentiates growth from contraction.

The survey report found that inflows of new work at Indian goods producers continued to expand during February, on the account of successful advertising efforts, supportive government policies and strengthening demand conditions. The increase was the sixteenth in as many months and the most pronounced since October 2016. Further, growth of total order books was supported by gains from international sources, as seen by a marked and accelerated upturn in new export work. The report also noted that manufacturing output rose at the quickest rate since December 2017, boosted by strong inflows of new business, technological progress, beneficial public policies and positive market conditions.

On the inflation front, input costs increased, with firms citing higher prices for iron, steel, chemicals, plastic, tobacco and tools. Despite quickening to a three-month high, the rate of inflation was much weaker than its long-run average. Similarly, the rise in factory gate charges was weak in the context of historical data. Meanwhile, job creation was sustained, taking the current spell of growth to 11 months. Moreover, the upturn was the joint-quickest in over one year.

The CNX Nifty is currently trading at 10852.55, up by 60.05 points or 0.56% after trading in a range of 10823.10 and 10871.60. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were HPCL up by 3.63%, Yes Bank up by 2.83%, Tata Motors up by 2.62%, Adani Ports & SEZ up by 2.62% and Indusind Bank up by 2.59%. On the flip side, Bharti Airtel down by 3.07%, Bajaj Auto down by 1.20%, Axis Bank down by 0.97%, Asian Paints down by 0.80% and Cipla down by 0.69% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 217.53 points or 1.02% to 21,602.69, Hang Seng increased 178.99 points or 0.63% to 28,812.17, Jakarta Composite soared 55.63 points or 0.86% to 6,498.98, Straits Times advanced 8.50 points or 0.26% to 3,221.19 and Shanghai Composite was up by 26.88 points or 0.91% to 2,967.83.

All European markets were trading mostly in green; UK’s FTSE 100 gained 45.12 points or 0.64% to 7,119.85, Germany’s DAX added 129.08 points or 1.12% to 11,644.72 and France’s CAC was up by 37.54 points or 0.72% to 5,278.07.