Bourses trade near day’s highest points in late afternoon session

The Indian equity benchmarks traded near day’s highest levels in late afternoon session helped by positive macroeconomic data. Traders got support as revenue secretary Sanjay Malhotra said that Goods and Services Tax (GST) revenues for August 2023 have shown a growth of 11 per cent year on year due to increased compliance and less evasion. The collection from GST was Rs 1,43,612 crore in August 2022. Further, support also came in as India's manufacturing sector activity showed a robust growth in the month of August, as new orders and output increased at the quickest rates. On the global front, Asian markets were trading in green as investors waited to take cues from the all-important U.S. jobs data due later in the day, expected to show that job additions slowed to 170,000 last month. European markets were trading higher as energy and mining stocks tracked firmer commodity prices, while German miner Aurubis slumped following a profit warning. 

The BSE Sensex is currently trading at 65448.20, up by 616.79 points or 0.95% after trading in a range of 64818.37 and 65454.13. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.71%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Metal up by 2.95%, Utilities up by 2.93%, Telecom up by 2.69%, PSU up by 2.56% and Power was up by 2.55%, while Healthcare down by 0.49% was the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 4.55%, Tata Steel up by 3.46%, Maruti Suzuki up by 3.15%, Indusind Bank up by 3.05% and JSW Steel up by 2.44%. On the flip side, Ultratech Cement down by 0.57%, Nestle down by 0.30% and Sun Pharma down by 0.14% were the top losers.

Meanwhile, indicating the second-best improvement in the health of the sector for nearly three years, India's manufacturing sector activity showed a robust growth in the month of August, as new orders and output increased at the quickest rates. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) jumped to 58.6 in August, 2023 from 57.7 in July. 

The report noted that a healthy demand environment and favourable market conditions encouraged Indian manufacturers to step up production. Output rose for the twenty-sixth successive month and to the greatest extent in just under three years. To keep production lines running smoothly, manufacturers purchased additional raw materials and semi-finished items in August. Buying levels rose sharply and at one of the fastest rates seen in over 12 years.

On the price front, cost inflationary pressures accelerated but there was a slower uptick in selling charges. August data showed reduced capacity pressures at Indian manufacturers as outstanding business volumes were broadly stable. Concurrently, inventories of finished items fell amid the fulfillment or rising demand. The pace of stock depletion was moderate and softened since July.

Meanwhile, upward revisions to marketing budgets, better customer relations, demand strength and a healthy number of client enquiries underpinned upbeat forecasts among manufacturers regarding the year-ahead outlook for production. Although historically elevated, the overall level of positive sentiment slipped to a three-month low due to inflation concerns.

The CNX Nifty is currently trading at 19453.30, up by 199.50 points or 1.04% after trading in a range of 19255.70 and 19458.55. There were 44 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 4.99%, NTPC up by 4.47%, ONGC up by 3.93%, Tata Steel up by 3.66% and Maruti Suzuki up by 3.40%. On the flip side, Cipla down by 0.61%, Dr. Reddy's Lab down by 0.52%, Ultratech Cement down by 0.37%, HDFC Life Insurance down by 0.36% and Nestle down by 0.35% 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 33.89 points or 0.49% to 6,987.15, Shanghai Composite strengthened 13.37 points or 0.43% to 3,133.2, Taiwan Weighted added 10.43 points or 0.06% to 16,644.94 and KOSPI was up by 7.44 points or 0.29% to 2,563.71.

European markets were trading higher; UK’s FTSE 100 increased 38.85 points or 0.52% to 7,477.98, France’s CAC rose 9.93 points or 0.14% to 7,326.63 and Germany’s DAX was up by 6.6 points or 0.04% to 15,953.68.