Sensex, Nifty add gains in late morning deals

Indian equity benchmarks added gains in late morning deals, with both Sensex and Nifty trading with notable gains, despite negative cues from other Asian markets. Domestic sentiments were positive, as India’s Manufacturing Purchasing Managers’ Index (PMI) for August has come in at 52, compared to 46 in July, signalling growth and rebound in production volumes for the first time in five months. For the first time since March, output expanded in the Indian manufacturing sector in August. Production growth was largely driven by greater client demand for Indian goods following the resumption of business operations, according to firms.

On the global front, Asian markets were trading mostly in red, even after the manufacturing sector in China continued to expand in August, and at a faster pace, the latest survey from Caixin revealed on Tuesday with a manufacturing PMI score of 53.1. That's up from 52.8 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Individually, the sector saw the sharpest increase in output and new orders since 2011. New export work rose for the first time this year, while employment moved closer to stabilization.

The BSE Sensex is currently trading at 38943.30, up by 315.01 points or 0.82% after trading in a range of 38542.11 and 39037.41. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.20%, while Small cap index was down by 0.59%.

The top gaining sectoral indices on the BSE were Telecom up by 2.17%, Power up by 1.18%, TECK up by 0.76%, Metal up by 0.69% and Energy up by 0.68%, while Realty down by 1.85%, Oil & Gas down by 0.99%, PSU down by 0.48%, Basic Materials down by 0.22% and Healthcare down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.95%, Asian Paints up by 2.82%, NTPC up by 2.12%, Bajaj Finance up by 2.06% and HDFC up by 1.83%. On the flip side, ONGC down by 4.45%, Axis Bank down by 2.47%, Ultratech Cement down by 0.97%, ICICI Bank down by 0.91% and ITC down by 0.89% were the top losers.

Meanwhile, India's economy has suffered its worst slump on record in April-June quarter of current fiscal year (Q1FY21), with the gross domestic product (GDP) contracting by 23.9% as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment. The GDP contraction in the country compared with 3.1% growth in the preceding January-March quarter and 5.2% expansion in the same period a year back. This is the sharpest contraction since quarterly figures started being published in 1996.

As per the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation data, GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9% as compared to 5.2% growth in Q1 2019-20. Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2020-21 is estimated at Rs 25.53 lakh crore, as against Rs 33.08 lakh crore in Q1 of 2019-20, showing a contraction of 22.8%.

The data showed that GDP at Current Prices in the year Q1 2020-21 is estimated at Rs 38.08 lakh crore, as against Rs 49.18 lakh crore in Q1 2019-20, showing a contraction of 22.6% as compared to 8.1% growth in Q1 2019-20. GVA at Basic Price at Current Prices in Q1 2020-21, is estimated at Rs 35.66 lakh crore, as against Rs 44.89 lakh crore in Q1 2019-20, showing a contraction of 20.6%.

The first quarter estimates are based on agricultural production during Rabi season of 2019-20 (which ended in June 2020) obtained from the Department of Agriculture, Cooperation & Farmers’ Welfare; estimates of production, mainly in the form of production targets for Milk, Egg, Meat and Wool for Livestock Sector from the Department of Animal Husbandry & Dairying and Fish production data from the Department of Fisheries.

The CNX Nifty is currently trading at 11476.65, up by 89.15 points or 0.78% after trading in a range of 11366.90 and 11510.00. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.17%, JSW Steel up by 3.35%, Hindalco up by 3.21%, Asian Paints up by 3.11% and Bajaj Finance up by 2.41%. On the flip side, Bharti Infratel down by 4.51%, ONGC down by 4.27%, Coal India down by 2.38%, Adani Ports & SEZ down by 2.33% and Axis Bank down by 2.24% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 13.61 points or 0.06% to 23,126.15, Straits Times trembled 12.92 points or 0.51% to 2,519.59, Hang Seng decreased 5.50 points or 0.02% to 25,171.55 and Jakarta Composite lost 1.05 points or 0.02% to 5,237.44. On the flip side, Shanghai Composite gained 1.49 points or 0.04% to 3,397.17, KOSPI rose 24.41 points or 1.05% to 2,350.58 and Taiwan Weighted strengthened 81.83 points or 0.65% to 12,673.28.