Sensex, Nifty trade near neutral lines

Indian equity benchmarks were trading near their neutral lines in late morning session, with both Sensex and Nifty trading in green terrain with marginal gains, despite negative cues from other Asian markets. Traders were getting support, as Reserve Bank of India (RBI) in its latest survey has showed that exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at $148.3 billion. Besides, retirement fund body EPFO recorded net new enrolments of 14.65 lakh in July, 31.28 per cent higher than 11.16 lakh in June this year, giving a perspective of formal sector employment in the country.

On the global front, Asian markets were trading mostly in red, even after the Hong Kong economy grew as initially estimated in the second quarter. The Census and Statistics Department said that gross domestic product increased 7.6 percent in real terms in the second quarter over a year earlier, compared with the 8.0 percent expansion in the first quarter. The rate came in line with the estimate published on August 13.

The BSE Sensex is currently trading at 58496.81, up by 5.88 points or 0.01% after trading in a range of 58232.54 and 58779.42. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.48%, while Small cap index was down by 1.18%.

The top gaining sectoral indices on the BSE were Realty up by 1.82%, TECK up by 0.42%, Telecom up by 0.41%, Energy up by 0.38% and FMCG up by 0.34%, while Utilities down by 1.37%, Auto down by 1.12%, Power down by 1.00%, Bankex down by 0.88% and Consumer Durables down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.37%, Hindustan Unilever up by 1.36%, Bajaj Finance up by 1.34%, Bajaj Finserv up by 1.00% and HCL Tech up by 0.99%. On the flip side, Maruti Suzuki down by 2.44%, Axis Bank down by 1.79%, Bajaj Auto down by 1.60%, ICICI Bank down by 1.42% and HDFC Bank down by 1.35% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its latest survey has showed that exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth during 2020-21 and stood at $148.3 billion. The RBI released data related to the 2020-21 round of its annual survey on exports of computer software and information technology enabled services. As per the data, of the total exports India's exports of software services (excluding exports through commercial presence) stood at $133.7 billion during 2020-21, registering 4.0 per cent growth over the previous year. Besides, software exports by foreign affiliates through commercial presence, where the US is a major destination, stood at $14.6 billion in 2020-21.

Computer services and ITES accounted for 65.3 per cent and 34.7 per cent, respectively, of the total software services exports. BPO services were the dominant component of exports of IT enabled services (ITES). Also, over half of the exports of software services were made by private limited companies. It said the United States was the major destination for software exports accounting for 54.8 per cent; Europe had 30.1 per cent share, nearly half of which was in the UK.

The US dollar was the principal invoicing currency for software exports with 72 per cent share; euro and pound sterling together accounted for another 15.9 per cent. The RBI further said the share of mode-1 (cross-border supply) in India's exports of software services increased further to 78.4 per cent in 2020-21. This share has been increasing over the years, from 38.8 per cent in 2002-03 to 64.6 per cent in 2009-10 and further to 75.1 per cent in 2019-20, at the cost of the other three modes of delivery.

The other three modes are -- mode-2 (consumption abroad); mode-3 (commercial presence); and mode-4 (presence of natural persons).  For the 2020-21 round of the survey, 6,115 software export companies were contacted, of which 1,815 companies responded, which included most of the large companies. The responding companies accounted for 86.5 per cent of the total software services exports during the year.

The CNX Nifty is currently trading at 17400.40, up by 3.50 points or 0.02% after trading in a range of 17326.10 and 17481.10. There were 30 stocks advancing against 19 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were ONGC up by 3.19%, JSW Steel up by 3.07%, UPL up by 2.13%, Cipla up by 1.84% and Asian Paints up by 1.45%. On the flip side, Maruti Suzuki down by 2.45%, Hero MotoCorp down by 2.16%, Shree Cement down by 2.04%, Axis Bank down by 1.90% and Bajaj Auto down by 1.64% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 549.91 points or 1.8% to 29,950.14, Hang Seng decreased 77.02 points or 0.32% to 24,022.12 and Jakarta Composite lost 44.94 points or 0.74% to 6,031.38. On the flip side, Straits Times advanced 13.33 points or 0.44% to 3,055.06.