Sensex, Nifty hold rally amid robust Macroeconomic data

A robust India’s manufacturing PMI data and economic growth helped Indian equity benchmarks to hold their gaining rally in early afternoon deals, with Sensex and Nifty gaining over 200 and 80 points, respectively. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) jumped to 58.6 in August from 57.7 in July, while with better performance by agriculture and financial sectors, India has recorded an economic growth rate of 7.8 per cent in the April-June quarter (Q1) of 2023-24. Firm cues from other Asian markets along with heavy buying at Telecom and Metal counters supported upward momentum. Adding more optimism among traders, Moody's Investors Service raised India's growth projection for 2023 calendar year to 6.7 per cent on account of robust economic momentum.

On the global front, Asian markets were trading in green, as China's manufacturing activity rebounded in August on fresh increases in output and new orders. The data from S&P Global showed that the Caixin manufacturing Purchasing Managers' Index rose to 51.0 in August from 49.2 in July. A reading above 50.0 indicates expansion in the sector. Although the growth was mild, the pace was the best seen since February. Driven by higher client spending, new order intakes increased in August. 

The BSE Sensex is currently trading at 65043.92, up by 212.51 points or 0.33% after trading in a range of 64818.37 and 65082.42. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.40%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Telecom up by 2.93%, Metal up by 2.23%, Utilities up by 2.19%, PSU up by 2.02%, Power up by 1.84%, while Healthcare down by 0.54% was the only losing index on BSE.

The top gainers on the Sensex were NTPC up by 3.93%, Tata Steel up by 2.72%, JSW Steel up by 1.91%, Indusind Bank up by 1.63% and Tata Motors up by 1.62%. On the flip side, HDFC Bank down by 0.58%, Ultratech Cement down by 0.54%, Asian Paints down by 0.35%, Nestle down by 0.34% and Sun Pharma down by 0.33% were the top losers.

Meanwhile, The data released by the Controller General of Accounts (CGA) has showed that the Centre's fiscal deficit in the first four months of 2023-24 touched 33.9 per cent of the full-year target. In absolute terms, the fiscal deficit -- the gap between expenditure and revenue -- was Rs 6.06 lakh crore as of July-end. The deficit stood at 20.5 per cent of the Budget Estimates (BE) in the corresponding period of the financial year 2022-23.

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9 per cent of the gross domestic product (GDP) in the current 2023-24 financial year. The deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent. Unveiling the revenue-expenditure data of the Union government for the April-July period of 2023-24, CGA said the net tax revenue was Rs 5.83 lakh crore or 25 per cent of the BE for the current fiscal. The net tax revenue collection was 34.4 per cent at end-July 2022.

The central government's total expenditure in the first four months stood at Rs 13.81 lakh crore or 30.7 per cent of BE. The expenditure touched 28.6 per cent of the BE in the year-ago period. Of the total expenditure, Rs 10.64 lakh crore was on the revenue account and Rs 3.17 lakh crore was towards the capital account. 

The CNX Nifty is currently trading at 19343.15, up by 89.35 points or 0.46% after trading in a range of 19255.70 and 19350.75. There were 39 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Jio Financial Services up by 4.67%, ONGC up by 4.45%, NTPC up by 3.81%, Tata Steel up by 2.89% and SBI Life Insurance Company up by 2.38%. On the flip side Divi's Laboratories down by 0.79%, Dr Reddy's Laboratories down by 0.63%, Cipla down by 0.56%, HDFC Bank down by 0.52% and Britannia down by 0.46% were the top losers. 

Asian markets were trading in green; Nikkei 225 surged 91.28 points or 0.28% to 32,710.62, Jakarta Composite gained 16.16 points or 0.23% to 6,969.42, Taiwan Weighted added 10.43 points or 0.06% to 16,644.94, Shanghai Composite strengthened 8.95 points or 0.29% to 3,128.83 and KOSPI increased 7.44 points or 0.29% to 2,563.71.