Bourses off day’s high in late noon deals

Indian equity bourses pared some of their gains in late afternoon session to come off their intraday high points, despite positive start of European markets. Gains got trimmed as Fitch Solutions cut its forecast for India's economic growth to 4.9 per cent in the current fiscal that ends March 31, saying manufacturing could come under pressure from weak domestic demand and supply chain disruptions due to the coronavirus outbreak. The GDP growth is forecast to recover slightly to 5.4 per cent in 2020-21 (April 2020 to March 2021). However, markets managed to keep their heads in green terrain, on the back of Union minister Nitin Gadkari’s statement that the Modi government is all set to give a major boost to the micro, small and medium enterprises (MSMEs) in the country.

On the global front, European markets were trading in green, as Spain's manufacturing sector returned to expansion territory in February after contracting for eight straight months. The survey data from IHS Markit showed that the manufacturing Purchasing Managers' Index rose to a 10-month high of 50.4 from 48.5 in January. Asian markets were also trading in green, after Indonesia's manufacturing conditions improved for the first time in eight months in February. The survey data from IHS Markit showed that the manufacturing Purchasing Managers' Index rose to 51.9 from 49.3 in January. A score above 50 indicates expansion.

The BSE Sensex is currently trading at 38648.55, up by 351.26 points or 0.92% after trading in a range of 38636.49 and 39083.17. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.99%, while Small cap index was up by 1.15%.

The top gaining sectoral indices on the BSE were IT up by 2.28%, TECK up by 2.07%, Realty up by 1.76%, Power up by 1.43% and Telecom up by 1.43%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were HCL Tech. up by 4.43%, ICICI Bank up by 4.37%, Nestle up by 3.23%, Infosys up by 2.95% and HDFC up by 2.55%. On the flip side, Bajaj Auto down by 2.88%, Hero MotoCorp down by 1.65%, SBI down by 1.06%, Tata Steel down by 0.96% and ONGC down by 0.60% were the top losers.

Meanwhile, Indian manufacturing activity growth slowed in the month of February 2020, with the latest rise in jobs was the weakest in three months and only fractional overall. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance -eased to 54.5 in February from 55.3 in January. Nevertheless, despite a slight slowdown, the manufacturing sector activity expanded as the PMI reading stood above the watershed 50 mark, which differentiates growth from contraction.

The report found that manufacturing production increased at a similar pace to January's 91-month high, as firms reacted positively to new business gains and favourable market conditions. Growth was led by consumer goods makers, followed closely by intermediate goods producers. Aggregate new orders increased sharply in February, with growth little-changed from January's recent high, on the back of successful marketing campaigns, strengthening demand and supportive economic conditions.

Further, exports contributed to the expansion in total sales, with Indian companies noting the second-strongest improvement in international demand for their goods since November 2018. There was a notable rise in new orders from abroad at consumer goods producers and modest gains in the intermediate and capital goods sectors. At the same time, the rate of input cost inflation remained negligible in the context of historical data. Meanwhile, business sentiment faded on the back of concerns regarding the impact of the COVID-19 outbreak on exports and supply chains.

The CNX Nifty is currently trading at 11300.00, up by 98.25 points or 0.88% after trading in a range of 11299.10 and 11433.00. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.05%, HCL Tech. up by 4.26%, ICICI Bank up by 3.74%, Bharti Infratel up by 3.19% and Infosys up by 2.92%. On the flip side, Yes Bank down by 3.32%, Bajaj Auto down by 3.22%, Hero MotoCorp down by 2.17%, GAIL India down by 2.06% and SBI down by 1.93% were the top losers.

Asian markets were trading mostly higher; Nikkei 225 surged 201.12 points or 0.95% to 21,344.08, Hang Seng increased 190.30 points or 0.73% to 26,320.23, Shanghai Composite gained 98.57 points or 3.42% to 2,978.87, KOSPI rose 15.50 points or 0.78% to 2,002.51 and Straits Times was up by 8.87 points or 0.29% to 3,019.95. On the flip side, Jakarta Composite lost 86.00 points or 1.58% to 5,366.70 and Taiwan Weighted was down by 121.71 points or 1.08% to 11,170.46.

All European markets were trading in green, UK’s FTSE 100 gained 169.26 points or 2.57% to 6,749.87, France’s CAC rose 96.79 points or 1.82% to 5,406.69 and Germany’s DAX was up by 161.59 points or 1.36% to 12,051.94.