Domestic indices trade above neutral lines

Indian equity benchmarks continued their lackluster trade in late afternoon session with positive bias after negative opening of European markets. Markets are trading cautious due to weak Purchasing Managers' Index (PMI) data globally as well as domestically, raising concerns over the outlook of economies all over the world. Data released by S&P Global showed that India’s services purchasing managers' index (PMI) fell to 60.1 in August from 62.3 recorded in July. Healthy buying at Realty and Healthcare counters mainly supporting markets to keep their head above water. Broader indices are outperforming larger peers with gains of over half a percent. On the sectoral front, breweries stocks are in focus as apex body for liquor firms Confederation of Indian Alcoholic Beverage Companies (CIABC) said removal of non-tariff barriers in G20 nations such as minimum maturation condition for whisky will help in increasing exports of alcoholic beverages from India.

On the global front, most of the Asian markets are trading lower as weak China services PMI data revived concerns about growth and spurred risk aversion. China's service sector grew at the slowest pace in eight months in August largely due to weaker new business. Also, European markets are trading in red as weak data from the euro area revived concerns about slowing growth. Business activity in the euro zone weakened further in August as the economic downturn extended from manufacturing to the services sector. Hamburg Commercial Bank’s (HCOB) final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 46.7 in August from July's 48.6, marking the lowest level since November 2020.

The BSE Sensex is currently trading at 65678.04, up by 49.90 points or 0.08% after trading in a range of 65601.47 and 65809.51. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.01%, while Small cap index was up by 0.63%.

The top gaining sectoral indices on the BSE were Realty up by 1.31%, Healthcare up by 1.22%, Consumer Durables up by 0.74%, FMCG up by 0.67% and Energy up by 0.65%, while Telecom down by 0.29%, Utilities down by 0.27%, Bankex down by 0.11% and Auto down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.02%, Titan Company up by 1.11%, ITC up by 1.09%, Bajaj Finance up by 0.96% and Nestle up by 0.84%. On the flip side, Ultratech Cement down by 1.48%, NTPC down by 1.08%, Maruti Suzuki down by 0.92%, Wipro down by 0.75% and HDFC Bank down by 0.70% were the top losers.

Meanwhile, India’s services sector growth eased in the month of August, but remained among the best in 13 years, with a series-record increase in new export business inducing another sharp expansion in total sales.  As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 60.1 in August from 62.3 in July. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 60.9 in August as against 61.9 in July.

The survey report noted that total new business increased for the twenty-fifth month in a row during August. Advertising and robust demand for services were among the reasons listed for growth. Although softer than in July, the overall expansion in sales was one of the strongest seen in 13 years. The overall rate of input price inflation remained above that seen for output charges, despite easing since July. 

Besides, it stated that hiring activity across India's service economy continued to expand halfway through the second fiscal quarter. The rate of job creation was moderate, but the strongest seen since last November. According to the report, capacity pressures at service providers ticked higher in August, evidenced by a stronger increase in work pending completion. 

The CNX Nifty is currently trading at 19545.85, up by 17.05 points or 0.09% after trading in a range of 19525.75 and 19587.05. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 3.17%, Sun Pharma up by 2.02%, Coal India up by 1.61%, ITC up by 1.15% and Adani Enterprises up by 1.09%. On the flip side, Ultratech Cement down by 1.49%, Dr. Reddy's Lab down by 1.47%, SBI Life Insurance down by 1.27%, NTPC down by 1.04% and Maruti Suzuki down by 0.91% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 387.25 points or 2.1% to 18,456.91, Shanghai Composite weakened 22.69 points or 0.72% to 3,154.37, Jakarta Composite plunged 11.11 points or 0.16% to 6,985.64, Straits Times fell 9.42 points or 0.29% to 3,229.55 and KOSPI was down by 2.37 points or 0.09% to 2,582.18. On the other hand, Nikkei 225 rose 97.58 points or 0.3% to 33,036.76 and Taiwan Weighted was up by 1.92 points or 0.01% to 16,791.61.

European markets were trading lower; UK’s FTSE 100 decreased 21.82 points or 0.29% to 7,430.94, France’s CAC fell 66.2 points or 0.91% to 7,213.31 and Germany’s DAX was down by 75.06 points or 0.47% to 15,749.79.