Markets hold gains in late noon deals

In a highly volatile session, Indian equity bourses were holding their gains during late afternoon deals, on account of firm opening of European markets. Market participants were getting comfort, as SME Minister Nitin Gadkari has called a meeting of heads of banks, finance ministry officials, and CEOs of various of central PSUs on September 5 to sort out the problem of delayed payments being faced by small and medium enterprises. However, volatility persisted on the street, after reports that indicating deepening crisis in the economy, a quarterly survey of small business by the state-run SIDBI found that their sentiment has been impacted by the broader trends in the economy.  

On the global front, European markets were trading in green, despite the UK service sector growth remained subdued in August reflecting slower growth in output and new orders. The data from IHS Markit revealed that the IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index fell more-than-expected to 50.6 in August from 51.4 in July. Asian markets were also trading in green.

Back home, textile industry stocks were in focus, after Tirupur Exporters' Association (TEA) claimed that the union textile secretary has given an assurance to TEA to address issues being faced by the knitwear industry and help the growth of exporting units.

The BSE Sensex is currently trading at 36657.40, up by 94.49 points or 0.26% after trading in a range of 36409.54 and 36757.58. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index was up by 0.09%.

The top gaining sectoral indices on the BSE were Telecom up by 1.66%, Metal up by 1.49%, PSU up by 1.02%, Bankex up by 1.00% and Capital Goods up by 0.68%, while Auto down by 1.70%, Consumer Durables down by 1.39%, Consumer Discretionary down by 0.97%, Energy down by 0.50% and FMCG was down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.30%, SBI up by 2.18%, HDFC Bank up by 2.00%, Vedanta up by 1.98% and Tata Steel was up by 1.92%. On the flip side, Maruti Suzuki down by 3.49%, Sun Pharma down by 3.38%, Tata Motors down by 3.06%, Tata Motors - DVR down by 2.83% and Asian Paints was down by 2.55% were the top losers.

Meanwhile, MSME Minister Nitin Gadkari is going to discuss issues being faced by small & medium enterprises including delayed payments. The Minister has called a meeting of heads of banks, finance ministry officials, and CEOs of several of central PSUs on September 05, 2019.

MSMEs have been expressing concern over failure of the Micro and Small Enterprise Facilitation Council (MSEFC) in resolving cases of delayed payments within the stipulated 90 days. This major issue is on the agenda of the meeting convened by Gadkari.

The meeting may also consider modification of the relevant rules governing the sector for recovery of dues by way of arrears of land revenue. Besides, proposal of setting up of more than one MSEFC in each state is also on the agenda.

The CNX Nifty is currently trading at 10821.45, up by 23.55 points or 0.22% after trading in a range of 10746.35 and 10848.60. There were 29 stocks advancing against 20 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 2.83%, Bharti Airtel up by 2.27%, SBI up by 2.14%, Vedanta up by 2.01% and Tata Steel was up by 1.95%. On the flip side, Maruti Suzuki down by 3.42%, Sun Pharma down by 3.38%, Tata Motors down by 3.20%, Asian Paints down by 2.77% and Britannia was down by 2.75% 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.

All European markets were trading in green; FTSE gained 51.80 points or 0.71% to 7,319.99, CAC rose 63.70 points or 1.17% to 5,529.77 and DAX was up by 147.14 points or 1.24% to 12,058.00.