Benchmarks trade with minor gains in late afternoon session

Indian benchmarks were trading marginally higher in late afternoon session. Traders were seen piling up positions in Consumer Durables, IT and TECK sector while selling was witnessed in Metal, Energy and Bankex sector stocks. Traders took support with report that India has moved four places on the Global Innovation Index (GII) 2020 to rank at 48 since 2019. This makes it the third-most innovative lower middle-income economy in the world. India at the 48th place also retains the highest rank in the central and southern Asia region. However, markets traded with minor gains, as private report stated that activity in India's crippled services industry fell for a sixth straight month in August as coronavirus restrictions continued to hurt business operations and demand, causing the longest streak of job losses on record, an industry survey showed.

On the global front, Asian markets are trading mixed amid growing worries about Sino-US relations while the euro hit a one-week low as traders wagered on central bank action to tame the single currency. European markets were trading higher as investors monitored key economic data from around the world.

The BSE Sensex is currently trading at 39105.45, up by 19.42 points or 0.05% after trading in a range of 38943.43 and 39236.36. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.50%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.87%, IT up by 1.71%, TECK up by 1.49%, Auto up by 1.42% and Consumer Discretionary was up by 1.23%, while Metal down by 0.87%, Energy down by 0.80%, Bankex down by 0.69%, PSU down by 0.43% and Oil & Gas was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 5.02%, Tech Mahindra up by 3.19%, Maruti Suzuki up by 2.54%, TCS up by 1.85% and Asian Paints up by 1.82%. On the flip side, Bharti Airtel down by 1.86%, ICICI Bank down by 1.82%, NTPC down by 1.21%, ONGC down by 1.18% and Axis Bank down by 1.11% were the top losers.

Meanwhile, India’s service sector activity downturn eased in the month of August, however, the latest reading, by coming in below the 50.0 neutral value again, indicated a continued decline in business activity. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index was at 41.8 in August from 34.2 in July. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - was at 46.0 in August from 37.2 in July.

The report also noted that 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. Restrictions also contributed to a record increase in outstanding business.

On the price front, service providers reported increased cost burdens for the second month running. The rate of input price inflation was slightly faster than seen in July, but marginal overall. Besides, in line with rising cost burdens, output charges grew at a marginal pace. Sustained revenue losses through the second quarter and increasing cost burdens led companies to raise charges for the first time since March.

The CNX Nifty is currently trading at 11561.10, up by 26.10 points or 0.23% after trading in a range of 11507.65 and 11584.95. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 10.69%, Titan Company up by 5.11%, Grasim Industries up by 5.00%, UPL up by 4.35% and Eicher Motors up by 3.53%. On the flip side, Hindalco down by 2.24%, ICICI Bank down by 1.85%, Bharti Airtel down by 1.72%, Coal India down by 1.39% and ONGC down by 1.37% were the top losers.

Asian markets are trading mixed, Hang Seng decreased 112.49 points or 0.45% to 25,007.60, Jakarta Composite lost 31.16 points or 0.59% to 5,280.81, Shanghai Composite declined 19.82 points or 0.58% to 3,384.98, Straits Times trembled 13.46 points or 0.53% to 2,526.48. On the flip side, KOSPI rose 31.53 points or 1.33% to 2,395.90, Taiwan Weighted strengthened 58.47 points or 0.46% to 12,757.97 and Nikkei 225 was up by 218.38 points or 0.94% to 23,465.53.

European markets were trading higher, UK’s FTSE 100 increased 40.86 points or 0.69% to 5,981.81, France’s CAC increased 89.55 points or 1.78% to 5,121.29 and Germany’s DAX was up by 198.63 points or 1.5% to 13,442.06.