Sensex, Nifty turn negative in late morning session

Indian equity benchmarks turned negative in late morning session, with both Sensex and Nifty trading in red terrain, despite positive cues from other Asian markets. Traders got worried, after India’s manufacturing sector activities moderated in August, as business orders and production rose at softer rates due to the pandemic and rising input costs. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) stood at 52.3 in August, down from 55.3 in July, indicating a softer rate of growth that was subdued and below its long-run average. On the global front, Asian markets were trading mostly in green, after the manufacturing sector in Indonesia continued to contract in August, albeit at a slower pace, the latest report from Markit Economics showed manufacturing PMI score at 43.7. That's up from 40.1 in July, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex is currently trading at 57465.52, down by 86.87 points or 0.15% after trading in a range of 57277.88 and 57918.71. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Realty up by 1.47%, Consumer Durables up by 1.38%, Capital Goods up by 1.24%, Power up by 1.16% and Utilities up by 0.69%, while Metal down by 1.47%, IT down by 1.27%, TECK down by 1.10%, Basic Materials down by 0.70% and PSU down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.51%, Axis Bank up by 2.44%, Nestle up by 1.44%, Larsen & Toubro up by 1.23% and Dr. Reddy's Lab up by 1.07%. On the flip side, Tata Steel down by 2.19%, HDFC down by 1.82%, Bajaj Finserv down by 1.79%, TCS down by 1.56% and Infosys down by 1.53% were the top losers.

Meanwhile, rebounding from a deep slump last year, India's economy grew at a record 20.1 per cent year-on-year in April-June quarter, helped by a low base of the year-ago period coupled with improved manufacturing in spite of a devastating second wave of Covid-19 cases. A data released by the National Statistical Office (NSO) showed that the economy had contracted 24.4 per cent in the same quarter a year earlier.

GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 percent as compared to contraction of 24.4 percent in Q1 2020-21. Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8 percent.

GDP at Current Prices in the year Q1 2021-22 is estimated at Rs 51.23 lakh crore, as against Rs 38.89 lakh crore in Q1 2020-21, showing a growth of 31.7 percent as compared to contraction of 22.3 percent in Q1 2020-21. GVA at Basic Price at Current Prices in Q1 2021-22, is estimated at Rs 46.20 lakh crore, as against Rs 36.53 lakh crore in Q1 2020-21, showing a growth of 26.5 percent.

With a view to contain the second wave of the Covid-19 pandemic, localized and calibrated lockdowns were imposed during the first quarter of 2021-22. Restrictions were imposed on the economic activities not deemed essential, as also on the movement of people. The lockdown instructions in various States were duly considered by the National Statistical Office. The impact on economic activities and the data collection mechanisms owing to COVID-19 pandemic has an effect on the Quarterly GDP estimates also. The impact of these measures on overall economic activity are embedded in source data.

The CNX Nifty is currently trading at 17105.60, down by 26.60 points or 0.16% after trading in a range of 17090.00 and 17225.75. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 3.55%, Eicher Motors up by 2.27%, Axis Bank up by 2.17%, Nestle up by 1.29% and BPCL up by 1.25%. On the flip side, Tata Steel down by 2.23%, HDFC down by 1.79%, Bajaj Finserv down by 1.76%, Infosys down by 1.67% and TCS down by 1.60% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 296.36 points or 1.06% to 28,385.90, Hang Seng increased 159.36 points or 0.62% to 26,038.35, Straits Times advanced 33.11 points or 1.08% to 3,088.16, Shanghai Composite gained 30.62 points or 0.86% to 3,574.56 and KOSPI rose 2.26 points or 0.07% to 3,201.53. On the flip side, Taiwan Weighted dropped 15.27 points or 0.09% to 17,475.02 and Jakarta Composite lost 44.64 points or 0.73% to 6,105.66.