Bourses trade with traction in late afternoon session

Indian equity markets continued to trade with traction in late afternoon session. IT and Metal counters were on the priority list of the buyers. The broader indices, the BSE Mid cap index and Small cap index were too trading in green. Sentiments remained upbeat as India's manufacturing sector activity improved in the month of April, as factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.2 in April from 56.4 in March. On the global front, Asian markets were trading mostly in green as investors digested the sale of First Republic Bank to JPMorgan Chase. European markets were trading lower as markets opened after the Labour Day weekend, with a drag in oil and gas stocks offsetting gains from banking shares. 

The BSE Sensex is currently trading at 61400.28, up by 287.84 points or 0.47% after trading in a range of 61255.00 and 61486.24. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.86%, while Small cap index was up by 0.80%.

The top gaining sectoral indices on the BSE were Metal up by 1.85%, Power up by 1.60%, Utilities up by 1.52%, PSU up by 1.32% and Oil & Gas was up by 1.28%, while Telecom down by 0.18% was the only losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.05%, NTPC up by 2.54%, Maruti Suzuki up by 2.50%, Tata Steel up by 2.27% and Infosys up by 1.89%. On the flip side, Sun Pharma down by 1.60%, Ultratech Cement down by 1.30%, Kotak Mahindra Bank down by 1.11%, Bharti Airtel down by 1.08% and Tata Motors down by 0.95% were the top losers.

Meanwhile, India's manufacturing sector activity improved in the month of April, as factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.2 in April from 56.4 in March. 

The report further noted that new orders placed with goods producers rose at the quickest pace since last December. The rate of expansion was sharp and above its long-run average. The upturn was supported by favourable market conditions, demand strength and publicity. Likewise, output increased at a sharp rate that was the most pronounced in four months. 

On the inflation front, the overall rate of inflation remained below its long-run average despite quickening since March. Manufacturers signalled higher operating costs in April linked to fuel, metals, transportation and some other raw materials. Charge inflation also quickened in April, reaching a three-month high and matching its long-run average. 

Meanwhile, Indian manufacturers were confident that production volumes would be higher in 12 months' time, amid demand resilience, client enquiries, orders pending approval and marketing efforts. Moreover, the overall level of positive sentiment rose since March.

The CNX Nifty is currently trading at 18168.15, up by 103.15 points or 0.57% after trading in a range of 18101.75 and 18180.25. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.27%, Tech Mahindra up by 3.07%, HDFC Life Insurance up by 2.77%, Hindalco up by 2.65% and Maruti Suzuki up by 2.50%. On the flip side, Hero MotoCorp down by 2.37%, Sun Pharma down by 1.62%, Ultratech Cement down by 1.37%, Bharti Airtel down by 1.16% and Kotak Mahindra Bank down by 0.88% were the top losers.

Asian markets were trading mostly in green, Taiwan Weighted added 57.3 points or 0.37% to 15,636.48, Hang Seng advanced 39.24 points or 0.2% to 19,933.81, Nikkei 225 surged 34.77 points or 0.12% to 29,157.95, KOSPI increased 22.86 points or 0.91% to 2,524.39 and Straits Times was up by 8.89 points or 0.27% to 3,279.40. On the flip side, Jakarta Composite was down by 84.29 points or 1.23% to 6,831.43.

European markets were trading lower, UK’s FTSE 100 decreased 7.39 points or 0.09% to 7,863.18, France’s CAC fell 30.16 points or 0.4% to 7,461.34 and Germany’s DAX was down by 44.78 points or 0.28% to 15,877.60.