Markets trade flat; Auto, Healthcare major losers

Indian equity indices, altering between positive and negative territory, were now trading flat in afternoon session, despite a firm trend in Asian markets. The sentiments remained on lackluster mood with report showing that India’s services sector activity expanded at a slower pace in the month of August, impacted by slower rise in new business inflows. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 52.4 in August from 53.8 in July. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services – also slowed to of 52.6 in August as against 53.9 in July. However, traders took some support with report that India's central bank recommended a slew of measures for developing a secondary market for corporate loans, including easing of regulations to allow foreign portfolio investors (FPIs) to directly purchase distressed loans from banks. In the currency front, the rupee emerged strong, and was trading at 72.13 against US Dollar, higher by 26 paise.

On the global front, Asian markets were trading in green, after data showed improving services-sector activity in China last month. The private Caixin China services purchasing managers index rose to 52.1 in August from 51.6 in July. Data suggested that domestic demand was stronger than foreign demand and an employment measurement jumped.

The BSE Sensex is currently trading at 36589.43, up by 26.52 points or 0.07% after trading in a range of 36409.54 and 36665.39. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.47%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were Telecom up by 1.10%, Bankex up by 0.94%, Metal up by 0.57%, PSU up by 0.36% and TECK was up by 0.18%, while Auto down by 1.55%, Healthcare down by 1.49%, Consumer Durables down by 1.33%, Consumer Discretionary Goods & Services down by 1.06%, Oil & Gas was down by 0.83% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.88%, Bharti Airtel up by 1.84%, HDFC Bank up by 1.70%, Kotak Mahindra Bank up by 1.33% and ICICI Bank was up by 1.11%. On the flip side, Sun Pharma down by 8.14%, Tata Motors down by 4.66%, Tata Motors - DVR down by 4.20%, Asian Paints down by 2.94% and Maruti Suzuki was down by 2.54% were the top losers.

Meanwhile, India’s services sector activity expanded at a slower pace in the month of August, impacted by slower rise in new business inflows. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 52.4 in August from 53.8 in July. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services – also slowed to of 52.6 in August as against 53.9 in July.

The report further said that activity, sales and employment were expanded at slower rate compared to July. Further, amid reports of delayed client payments, services companies registered a further increase in outstanding business during August. The rise was the thirty-ninth in as many months and accelerated to the fastest since April.

On the price front, input prices continued to increase, on the back of higher food, fuel and staff costs. But, the overall rate of inflation softened in August and was negligible in the context of historical survey data. Information & Communication was the only monitored category in which cost burdens did not rise. Besides, services companies lifted their selling prices again in August, to guard against the detrimental impacts of rising costs on margins.

Meanwhile, service providers remained confident of a rise in business activity in the coming 12 months, with optimism strengthening to a one-year high. Forecasts of better demand conditions, marketing initiatives and accommodative public policies all boosted sentiment in August.

The CNX Nifty is currently trading at 10793.30, down by 4.60 points or 0.04% after trading in a range of 10746.35 and 10823.55. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.83%, SBI up by 1.68%, HDFC Bank up by 1.53%, Dr. Reddys Lab up by 1.25% and Kotak Mahindra Bank was up by 1.14%. On the flip side, Sun Pharma down by 8.35%, Tata Motors down by 4.88%, Asian Paints down by 3.02%, Maruti Suzuki down by 2.64% and Titan Company was  down by 2.18% were the top losers.

Asian markets were trading in green; Hang Seng increased 870.31 points or 3.41% to 26,398.16, Taiwan Weighted strengthened 99.10 points or 0.94% to 10,657.31, KOSPI rose 22.84 points or 1.16% to 1,988.53, Jakarta Composite soared 5.09 points or 0.08% to 6,266.68, Shanghai Composite gained 17.02 points or 0.58% to 2,947.17, Nikkei 225 surged 23.98 points or 0.12% to 20,649.14 and Straits Times was up by 34.53 points or 1.12% to 3,125.16.