Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in afternoon session with Sensex and Nifty trading above 57900 and 17250 levels respectively. Besides, broader indices were also trading in green, supporting their larger peers. Sentiment perked up as India's services sector expanded in August at the fastest pace in one-and-a-half years amid strong inflows of new work and improved demand conditions. The seasonally adjusted India Services Business Activity Index rose from 45.4 in July to 56.7 in August, as the reopening of several establishments and increased consumer footfall boosted sales. High-frequency key economic indicators for August 2021, in the form of GST collection, railway freight, auto sales volume despite semiconductor issues, power consumption, import-export data and fuel volumes indicate a sustained economic recovery on YoY comparison also boosted traders mood. Also, foreign institutional investors (FIIs) stood as net buyers in the capital market as they purchased shares worth Rs 348.52 crore on Thursday, as per provisional exchange data.

On the global front, Asian markets were trading mixed on concerns of the fast-spreading Delta variant, which weighed on investors’ confidence. On the sectoral front, PSU stocks were in spotlight as State-run oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have been given the mandate to set up around 12 ethanol manufacturing plants as part of a road map to meet the 20% ethanol blending target by 2025.

The BSE Sensex is currently trading at 57966.30, up by 113.76 points or 0.20% after trading in a range of 57764.07 and 58115.69. There were 13 stocks advancing against 17 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Energy up by 2.26%, Realty up by 1.49%, Oil & Gas up by 1.40%, Metal up by 1.37% and PSU was up by 1.02%, while FMCG down by 0.27% and Bankex was down by 0.19% were the only losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.58%, Titan Company up by 1.87%, Tata Steel up by 1.47%, Bajaj Auto up by 1.37% and Maruti Suzuki was up by 1.31%. On the flip side, Hindustan Unilever down by 1.26%, Axis Bank down by 0.89%, Ultratech Cement down by 0.76%, Bajaj Finserv down by 0.72% and HDFC was down by 0.68% were the top losers.

Meanwhile, Rating agency ICRA in its latest report has said that housing sales in volume terms more than doubled to 68.5 million sq ft year-on-year during April-June of this fiscal (Q1FY22) across eight major cities on lower base effect. However, it said the sales in the residential realty sector across the top eight cities of the country in Q1 FY2022 dropped 19 per cent to 68.5 million sq ft from 84.7 million sq ft in Q4 FY2021 due to the second wave of the pandemic.

According to the report, the sequential drop of 19 per cent comes on a high base of Q4 FY2021, in which the sector witnessed its second highest sales, since FY2012. However, it said residential sales more than doubled when compared to the 33.7 million sq ft of sales recorded in the corresponding quarter of the previous year, Q1 FY2021. With the increased focus on vaccination by the government and quick re-opening of the economy, it said sales are likely to recover to the earlier levels in the short-to-medium term.

The rating agency further stated that the underlying demand trend has remained intact, driven by factors such as multi-year low interest rates and need for more residential space on account of shift to hybrid working model. It said the impact of the second wave has been lower than that witnessed in the first wave due to various factors including the continuing work-from-home by many salaried employees, more localised lockdown restrictions and higher degree of certainty regarding future income levels and stability.

The CNX Nifty is currently trading at 17278.65, up by 44.50 points or 0.26% after trading in a range of 17212.20 and 17311.95. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.29%, Reliance Industries up by 2.65%, Hero MotoCorp up by 2.40%, Coal India up by 2.40% and Indian Oil Corporation was up by 2.36%. On the flip side, HDFC Life Insurance down by 2.94%, Hindustan Unilever down by 1.19%, Axis Bank down by 0.92%, Ultratech Cement down by 0.79% and HDFC was down by 0.78% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 584.60 points or 2.05% to 29,128.11, KOSPI rose 25.21 points or 0.79% to 3,201.06, Taiwan Weighted strengthened 197.16 points or 1.14% to 17,516.92 and Jakarta Composite was up by 10.20 points or 0.17% to 6,088.43.

On the other hand; Hang Seng decreased 184.86 points or 0.71% to 25,905.57, Straits Times trembled 8.66 points or 0.28% to 3,080.18 and Shanghai Composite was down by 18.42 points or 0.51% to 3,578.62.