Bourses continue to trade in green in late afternoon session

The Indian equity benchmarks continued to trade in green in late afternoon session. Traders took support as the government data has showed that Gross Goods and Services Tax (GST) collections in the month of August 2024 grew 10 per cent to about Rs 1.75 lakh crore. In July 2024, gross GST mop-up was Rs 1.82 lakh crore, while in August 2023 it was Rs 1.59 lakh crore. As per the data, gross GST revenues from domestic transactions grew 9.2 per cent to about Rs 1.25 lakh crore. Revenues from import of goods were up 12.1 per cent to Rs 49,976 crore. However gains were limited as India's manufacturing sector growth slowed down in the month of August, amid softer increases in new business and output, albeit with rates of expansion remaining elevated by historical standards.

On the global front, Asian markets were trading mixed as Chinese and Hong Kong markets fell on economic concerns. European markets were trading lower after a survey showed France's manufacturing activity contracted at its fastest pace since January in August as a result of a sharp fall in output and new orders.

The BSE Sensex is currently trading at 82534.77, up by 169.00 points or 0.21% after trading in a range of 82440.93 and 82725.28. There were 16 stocks advancing against 13 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading in red; the BSE Mid cap index declined 0.04%, while Small cap index was down by 0.54%.

The top gaining sectoral indices on the BSE were FMCG up by 0.76%, Utilities up by 0.58%, IT up by 0.39%, Bankex up by 0.39% and Energy was up by 0.02%, while Telecom down by 1.94%, Metal down by 1.20%, Capital Goods down by 0.95%, Industrials down by 0.95% and Consumer Durables was down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.43%, Bajaj Finance up by 3.27%, HCL Tech up by 2.69%, ITC up by 1.59% and Indusind Bank up by 1.23%. On the flip side, Bharti Airtel down by 1.35%, Tata Motors down by 1.32%, NTPC down by 1.28%, Mahindra & Mahindra down by 1.14% and Larsen & Toubro down by 0.86% were the top losers.

Meanwhile, India's manufacturing sector growth slowed down in the month of August, amid softer increases in new business and output, albeit with rates of expansion remaining elevated by historical standards. Besides, business confidence retreated, but firms scaled up buying levels in a bid to safeguard against input shortages.  

According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.5 in August 2024 as against 58.1 in July 2024, but above its long-run average of 54.0, signaling a substantial improvement in operating conditions.

The report noted that new business rose sharply midway through the second fiscal quarter, but the pace of expansion eased to a seven-month low. Competitive conditions reportedly dampened growth. New export orders likewise increased at the weakest pace since the start of the 2024 calendar year. Although output continued to rise at a historically sharp pace, the rate of expansion moderated to the slowest since January. 

On the price front, with input cost inflation receding, goods producers sought to rebuild safety stocks by purchasing additional raw materials and semi-finished goods. Despite the slowdown in cost pressures, there was a marked increase in prices charged for Indian goods in August. The rate of inflation was the second-fastest in close to 11 years. Firms reportedly shared additional cost burdens with their clients amid demand resilience.

Further, job creation softened midway through the second fiscal quarter as a few firms trimmed headcounts. Nevertheless, the overall rate of employment growth was solid in the context of historical data. Besides, competitive pressures and inflation concerns hampered business confidence in the reported month.

The CNX Nifty is currently trading at 25273.60, up by 37.70 points or 0.15% after trading in a range of 25235.50 and 25333.65. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.47%, Bajaj Finance up by 3.38%, HCL Tech up by 2.62%, Hero MotoCorp up by 2.04% and Bajaj Auto up by 1.97%. On the flip side, Hindalco down by 2.50%, Dr. Reddy's Lab down by 2.19%, Tata Motors down by 1.44%, Bharti Airtel down by 1.31% and ONGC down by 1.22% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 53.12 points or 0.14% to 38,700.87, Jakarta Composite gained 31.36 points or 0.41% to 7,702.09, Straits Times rose 21.85 points or 0.63% to 3,464.78 and KOSPI was up by 6.69 points or 0.25% to 2,681.00. On the flip side, Shanghai Composite weakened 31.17 points or 1.11% to 2,811.04, Taiwan Weighted lost 32.99 points or 0.15% to 22,235.10 and Hang Seng was down by 297.1 points or 1.68% to 17,691.97. 

European markets were trading lower; UK’s FTSE 100 decreased 4.87 points or 0.06% to 8,371.76, France’s CAC fell 24.86 points or 0.33% to 7,606.09 and Germany’s DAX was down by 32.65 points or 0.17% to 18,874.27.