Indices trade higher with marginal gains ahead of Q1 GDP data

Indian equity benchmarks started the session in green terrain on Thursday tracking overnight gains on Wall Street. Soon, markets turned volatile ahead of monthly F&O expiry later in the day. Market participants avoided taking any long position as they are awaiting India’s Q1 Gross Domestic Product (GDP) data to be out later in the day for more directional cues. There are expectations that the country’s economy grew at its fastest pace in a year in the April-June quarter, driven by services and manufacturing. At this time of trade, domestic indices are trading higher with marginal gains of around 0.20% each in early deals. Some support came in as Finance Minister Nirmala Sitharaman said Indian inflation will remain steady in coming months, despite short-term rises in the prices of certain food items. However, upside remained capped amid foreign fund outflows. According to the provisional data available on the NSE, foreign institutional investors (FII) sold shares worth net Rs 494.68 crore on August 30. 

On the global front, most of the Asian markets are trading lower as traders reacted to data showing China's manufacturing activity contracted for a fifth straight month in August. Also, industrial output in Japan was down a seasonally adjusted 2.0 percent on month in July. 

Back home, select textile industry stocks are in focus with Crisil’s report that home textile industry's revenues are expected to rise 7-9 per cent this fiscal as the sector regains global share following a correction in domestic cotton prices and restocking by big-box retailers in major overseas markets. In stocks specific development, BHEL gained on winning an order from NTPC for 2x800 MW Supercritical Thermal Power Project Stage-II in Lara, Chhattisgarh.

The BSE Sensex is currently trading at 65222.15, up by 134.90 points or 0.21% after trading in a range of 65012.14 and 65256.16. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.30%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were IT up by 0.63%, Bankex up by 0.42%, Metal up by 0.42%, Consumer Durables up by 0.38% and TECK up by 0.36%, while Utilities down by 0.25%, Realty down by 0.13%, Telecom down by 0.12%, Oil & Gas down by 0.11% and Capital Goods down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were JIO Financial Services.up by 4.38%, Maruti Suzuki up by 1.29%, HCL Technologies up by 1.08%, Axis Bank up by 1.04% and Tech Mahindra up by 0.93%. On the flip side, Bharti Airtel down by 0.59%, Asian Paints down by 0.59%, Bajaj Finance down by 0.39%, Larsen & Toubro down by 0.34% and Sun Pharma down by 0.33% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has expressed hope that exporters will come out as winners from the impact of the current global uncertainties. He said there are challenges on the global trade front due to the ongoing geo-political situation, concerns on inflation, and slowing growth in key economies. 

He said ‘We do have challenges but our business people have the ability and agility to come out as winners from this adverse situation’. He also exuded confidence that the country's goods and services exports would reach $2 trillion by 2030. The minister appealed to the industry to focus on quality and innovation with a view to increasing exports. 

Meanwhile, India's exports contracted by 15.88 per cent in July, for the sixth month in a row, to $32.25 billion due to a global slowdown and fall in shipments of key sectors like petroleum, gems and jewellery.

The CNX Nifty is currently trading at 19379.70, up by 32.25 points or 0.17% after trading in a range of 19317.95 and 19384.05. There were 30 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were JIO Financial Services up by 4.99%, Hindalco up by 1.35%, HCL Technologies up by 1.20%, Maruti Suzuki up by 1.16% and Tech Mahindra up by 1.12%. On the flip side, Adani Enterprises down by 2.26%, Adani Ports & SEZ down by 1.43%, Eicher Motors down by 0.88%, Asian Paints down by 0.66% and BPCL down by 0.64% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 67.47 points or 0.4% to 16,652.35, Hang Seng declined 31.01 points or 0.17% to 18,451.85, Jakarta Composite plunged 25.48 points or 0.37% to 6,941.18, Shanghai Composite weakened 16.75 points or 0.54% to 3,120.39 and KOSPI dropped 12.42 points or 0.48% to 2,548.80. On the other hand, Nikkei 225 surged 233.57 points or 0.72% to 32,567.03 and Straits Times was up by 13.38 points or 0.42% to 3,233.60.