Post Session: Quick Review

The Indian equity benchmarks extended their northward journey on Tuesday and both Sensex and Nifty ended session above their crucial 65,700 and 19,550 marks, respectively. In last leg of trade, markets touched their day’s highest points amid value buying. Indices managed to trade above neutral lines throughout the day despite weak India’s services purchasing managers' index (PMI) data. Sector wise, IT sector seen healthy buying, while Metal stocks gained traction in afternoon session. The broader indices, the BSE Mid cap index and Small cap index ended in green.

Indices made positive start and remained higher. Traders found some support with a private report that rains forecast for swathes of India this month should limit the damage to crops after a delayed monsoon and parched August, leaving the world’s most populous nation with sufficient supplies. Traders took a note of survey showed that India's service sector continued to expand in August, albeit at a slower pace than in July. According to S&P Global, India's services purchasing managers' index (PMI) came out to be 60.1 in August, lower than the 62.3 recorded in July. However, in June it was 58.5. In August 2022, India's services PMI was 56.2. A reading above 50 shows expansion in the sector. In afternoon session, markets trimmed some of their early gains. But, in last leg of trade, markets recovered from lost ground to end near day’s high levels. 

On the global front, European markets were trading lower 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. Asian markets ended mostly in red as weak China services PMI data revived concerns about growth and spurred risk aversion. Back home, the government data has showed that the India’s power consumption grew by over 16 per cent to 151.66 billion units (BU) in August 2023 as compared to the same month last year mainly due to increase usage of cooling appliances during sultry weather.

The BSE Sensex ended at 65,780.26, up by 152.12 points or 0.23% after trading in a range of 65,601.47 and 65,831.70. There were 17 stocks advancing against 12 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.09%, while Small cap index was up by 0.61%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 1.29%, Realty up by 1.08%, Energy up by 1.01%, Consumer Durables up by 0.90% and Metal up by 0.84%, while Telecom down by 0.20%, Utilities down by 0.08%, Bankex down by 0.05% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 2.09%, Titan Company up by 1.27%, ITC up by 1.26%, Bajaj Finance up by 1.06% and Nestle up by 0.98%. On the flip side, Ultratech Cement down by 1.46%, Maruti Suzuki down by 0.93%, HDFC Bank down by 0.57%, Wipro down by 0.53% and SBI down by 0.46% were the top losers. (Provisional)

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 ended at 19,574.90, up by 46.10 points or 0.24% after trading in a range of 19,525.75 and 19,587.05. There were 34 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Apollo Hospital up by 3.31%, Coal India up by 3.05%, Sun Pharma up by 2.07%, BPCL up by 1.60% and Bajaj Auto up by 1.39%. On the flip side, Ultratech Cement down by 1.49%, Dr. Reddy's Lab down by 1.42%, SBI Life down by 1.42%, Maruti Suzuki down by 0.97% and Eicher Motors down by 0.89% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 10.22 points or 0.14% to 7,442.54, France’s CAC fell 56.15 points or 0.78% to 7,223.36 and Germany’s DAX was down by 59.59 points or 0.38% to 15,765.26.

Asian markets settled mostly lower on Tuesday as weak China services PMI data fuelled concerns about growth in the world's second largest economy. The Caixin China services Purchasing Managers' Index slipped more-than-expected to 51.8 in August from 54.1 in July. Chinese and Hong Kong shares tumbled as concerns about debt defaults overshadowed Beijing’s efforts to stabilize growth. Seoul shares dropped marginally after data showed inflation in south Korea accelerated much faster than estimates in August on the back of higher energy costs. Meanwhile, investors are awaiting comments from key US federal bank officials on the outlook of the interest rate hike cycle. However, Japanese shares gained as a weaker yen boosted sentiment.