Gaining momentum continues on D-Street in late afternoon deals

Gaining momentum continued on the Dalal Street in late afternoon session, despite weak opening in European markets. Domestic sentiments were buoyed as the government decided to extend PM-KISAN scheme to all 14.5 crore farmers, costing Rs 87,000 crore a year, and also announced over Rs 10,000 crore pension scheme for five crore farmers, thereby fulfilling the BJP's poll promise. The street also remained positive after Indian manufacturing sector growth gained momentum in the month of May, on the back of faster expansions in output and order books. Aggregate manufacturing output increased at the quickest pace in three months. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 52.7 in May from 51.8 in April.

On the global front, European markets were trading in red, as Eurozone manufacturing activity remained entrenched inside contraction territory in May. The final survey data from IHS Markit showed that the factory Purchasing Managers' Index came in at 47.7 in May, in line with flash estimate, but down from 47.9 in the previous month. A score below 50 indicates contraction. The sector has shrunk over the last four successive months. Asian markets were also trading in red, amid lingering worries about global growth due to ongoing trade dispute between the US and China.

Back home, stocks related to the pharmaceuticals industry were in watch, after Fitch Ratings said that rising revenues in the domestic market have helped Indian pharma companies counterbalance the ongoing pricing pressure on generic drugs in the US in the financial year ended March 31.

The BSE Sensex is currently trading at 40242.70, up by 528.50 points or 1.33% after trading in a range of 39711.02 and 40246.02. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.82%, while Small cap index was up by 0.38%.

The top gaining sectoral indices on the BSE were Auto up by 1.85%, Metal up by 1.73%, Energy up by 1.65%, Consumer Disc up by 1.54% and Consumer Durables up by 1.52%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Hero MotoCorp up by 5.36%, Bajaj Auto up by 3.66%, Asian Paints up by 3.28%, Hindustan Unilever up by 2.74% and Indusind Bank up by 2.52%. On the flip side, Larsen & Toubro down by 0.25%, ITC down by 0.23%, ICICI Bank down by 0.20% and ONGC down by 0.03% were the top losers.

Meanwhile, Indian manufacturing sector growth gained momentum in the month of May, on the back of faster expansions in output and order books. Aggregate manufacturing output increased at the quickest pace in three months. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 52.7 in May from 51.8 in April.

As per the report, consumer goods led the upturn in May, with rates of expansion in output, total sales, new export orders and employment surpassing those seen in the intermediate as well as capital goods categories. Further, the report noted that strengthening demand and successful marketing underpinned sales growth in May.

Besides, an upbeat mood among goods producers, coupled with a solid increase in new work, underpinned further job creation in the sector. Employment has risen in each month since April 2018, with the latest expansion the most marked since February.

On price front, input cost inflation in India’s manufacturing industry ticked higher during May, but the rate of increase was negligible in the context of historical survey data. Concurrently, factory gate charges were broadly unchanged.

The CNX Nifty is currently trading at 12073.25, up by 150.45 points or 1.26% after trading in a range of 11920.10 and 12077.75. There were 43 stocks advancing against 6 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Hero MotoCorp up by 5.44%, Bajaj Auto up by 3.63%, Indiabulls Housing Finance up by 3.43%, Asian Paints up by 3.35% and Indian Oil Corporation up by 2.66%. On the flip side, Tech Mahindra down by 0.70%, GAIL India down by 0.42%, ITC down by 0.34%, ICICI Bank down by 0.28% and Larsen & Toubro down by 0.25% were the top losers.

Asian markets were trading mostly in red; Straits Times trembled 0.48 points or 0.02% to 3,117.28, Shanghai Composite declined 8.10 points or 0.28% to 2,890.60, Hang Seng decreased 29.36 points or 0.11% to 26,871.73 and Nikkei 225 slipped 190.31 points or 0.92% to 20,410.88. On the flip side, KOSPI rose 26.11 points or 1.28% to 2,067.85 and Taiwan Weighted strengthened 1.58 points or 0.02% to 10,500.07.

All European markets were trading in red; UK’s FTSE 100 lost 40.31 points or 0.56% to 7,121.40, France’s CAC fell 23.28 points or 0.45% to 5,184.35 and Germany’s DAX was down by 40.85 points or 0.35% to 11,685.99.