Sensex, Nifty hover near neutral lines

Indian equity benchmarks were hovering near their neutral lines in late morning session. Negative cues from other Asian markets impacted trade over the Dalal Street. However, downside remained capped, after the latest IHS Markit Services Purchasing Managers' Index (PMI) released on Thursday indicated a slower rate of decline in business activity across the Indian service sector during August. The ongoing coronavirus pandemic 2019 (COVID-19) restrictions continued to adversely impact client demand and business operations. New business and output continued to contract at marked rates, albeit slower than the records seen in April and May.

On the global front, Asian markets were trading mostly in red, even after China's services activity expanded strongly in August as businesses continued to recover from the coronavirus pandemic. The survey data from IHS Markit showed that the Caixin services Purchasing Managers' Index fell marginally to 54.0 from 54.1 in July. However, a score above 50 indicates expansion. The latest uptick extended the current sequence of growth to four months, signaling that the sector continued to recover from the marked drops in activity earlier in the year following the Covid-19 outbreak.

The BSE Sensex is currently trading at 39041.44, down by 44.59 points or 0.11% after trading in a range of 38976.63 and 39236.36. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.25%, IT up by 1.35%, TECK up by 1.13%, Consumer Discretionary up by 1.01% and Auto up by 0.98%, while Bankex down by 0.96%, Metal down by 0.71%, Energy down by 0.68%, PSU down by 0.58% and Realty down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Co up by 4.45%, Tech Mahindra up by 2.54%, Maruti Suzuki up by 2.18%, TCS up by 1.30% and HCL Tech up by 1.22%. On the flip side, ICICI Bank down by 2.27%, Indusind Bank down by 1.60%, Power Grid down by 1.41%, Axis Bank down by 1.35% and NTPC down by 1.26% were the top losers.

Meanwhile, the government has permitted Indian airlines to increase the number of domestic passenger flights to 60 per cent of their pre-COVID services, in a move to further ease restrictions. Earlier, in June 26, the Ministry of Civil Aviation had allowed the airlines to operate a maximum of 45 per cent of their pre-COVID domestic flights.

The ministry had restarted domestic passenger services from May 25, after a gap of two months due to the coronavirus-triggered lockdown. However, the airlines were allowed to operate not more than 33 per cent of their pre-COVID domestic flights. Modifying its previous order of June 26 where it had put the 45 per cent limit on the number of domestic flights, the ministry issued an order stating that ‘45 per cent capacity may be read as 60 per cent capacity’.

The average occupancy rate in domestic flights since their resumption in India on May 25 has been around 50-60 per cent only. Scheduled international passenger flights continue to remain suspended in the country since March 23 due to the pandemic. However, special international flights have been operating under Vande Bharat Mission since May and under bilateral air bubble pacts signed with various countries since July.

The CNX Nifty is currently trading at 11537.25, up by 2.25 points or 0.02% after trading in a range of 11514.80 and 11584.95. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 6.81%, Titan Co up by 4.61%, UPL up by 3.78%, Grasim Industries up by 3.60% and Eicher Motors up by 3.17%. On the flip side, ICICI Bank down by 2.33%, Hindalco down by 2.04%, Indusind Bank down by 1.49%, Axis Bank down by 1.39% and Power Grid down by 1.38% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 77.44 points or 0.31% to 25,042.65, Jakarta Composite lost 35.43 points or 0.67% to 5,276.54, Straits Times trembled 15.76 points or 0.62% to 2,524.18 and Shanghai Composite declined 2.11 points or 0.06% to 3,402.69. On the flip side, KOSPI rose 33.97 points or 1.44% to 2,398.34, Taiwan Weighted strengthened 38.70 points or 0.3% to 12,738.20 and Nikkei 225 surged 253.06 points or 1.09% to 23,500.21.