Sensex, Nifty log gains for third straight day

Indian equity benchmarks closed higher for the third straight day on Tuesday on gains in market heavyweights Sun Pharma, Titan Company and ITC. Indian bourses started the day on a positive note as traders took support with 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 were also getting some encouragement on report that India is on the path to become a solid global player due to robust financial regulations. India was in a sweet spot to grow robustly, despite global turmoil and monsoon risks to growth, and to do so, developing credit markets was essential.

However, key gauges trimmed some of their gains in afternoon session amid a bearish trend in global equities. Some concern also came as 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. However, markets regained traction in final hour of trade and settled higher. 

On the global front, European markets were trading mostly in red as weak data from the euro area fueled concerns about slowing global growth. Business activity in the euro zone weakened further in August as the economic downturn extended from manufacturing to the services sector. Asian markets settled mostly lower on Tuesday 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. The Caixin services Purchasing Managers' Index slipped more-than-expected to 51.8 from 54.1 in July. 

Finally, the BSE Sensex rose 152.12 points or 0.23% to 65,780.26 and the CNX Nifty was up by 46.10 points or 0.24% to 19,574.90.          

The BSE Sensex touched high and low of 65,683.91 and 65,601.47, respectively. There were 17 stocks advancing against 12 stocks declining, while 1 stock remained unchanged on the index.

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

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% and Bankex down by 0.05% were the top losing indices on BSE.

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%, NTPC down by 0.53% and Wipro down by 0.53% were the top losers.

Meanwhile, ratings agency ICRA in its report on the Indian commercial vehicle industry has said that Implementation of multiple proposed regulatory specifications can push up commercial vehicle prices by 10-12 per cent. It said the domestic automotive industry is undergoing rapid transformations, with increased focus by the government on implementing emission norms, safety systems and other standards that will bring the country at par with other major automotive markets.

It stated ‘Within the Indian automotive industry, the commercial vehicle (CV) sector has been the focus, given that CVs account for the major part of vehicular emissions in the country.’ It added mandatory standards towards driver comfort and safety can help improve the driving conditions and road safety to a large extent. Accordingly, it said there have been multiple regulatory interventions in the recent past, with the industry adopting stringent emission standards in a relatively short span of time, as well as driver safety and comfort standards such as advanced braking systems (ABS), speed limiting devices (SLD) and blowers in cabins, with a view to reducing vehicular emissions and improving road safety and driver comfort.

It pointed out that there are multiple proposed regulatory changes on the anvil such as the mandatory fitment of air-conditioners (ACs) in driver cabins which has already been announced with effect from January 1, 2025. It added ‘In addition, other standards like blind spot information systems, advanced emergency braking systems, roll over protection systems, driver alert systems etc. are proposed to improve road safety and minimise the occurrence as well as impact of road accidents.’ Besides, it said other regulations like mandatory fitment of fire detection, alarm and suppression systems have also been introduced for select segments like school buses and inter-city buses with effect from October 1, 2023.

The CNX Nifty traded in a range of 19,587.05 and 19,525.75. There were 33 stocks advancing against 17 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Apollo Hospital up by 3.22%, Coal India up by 3.07%, Sun Pharma up by 2.08%, BPCL up by 1.54% and ITC up by 1.52%. On the flip side, Ultratech Cement down by 1.49%, Dr. Reddy's Lab down by 1.40%, SBI Life Insurance down by 1.31%, Maruti Suzuki down by 1.03% and Eicher Motors down by 0.73% were the top losers.

European markets were trading mostly in red; France’s CAC fell 20.29 points or 0.28% to 7,259.22 and Germany’s DAX lost 22.12 points or 0.14% to 15,802.73, while UK’s FTSE 100 increased 11.17 points or 0.15% to 7,463.93.

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.