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Indices trade with decent gains; strong market breadth

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Capital Market
Last Updated : Sep 05 2022 | 9:50 AM IST

The key equity benchmarks traded with decent gains in early trade, amid some buying in index pivotals. The Nifty traded above the 17,600 mark. Metals, banks and financials advanced while pharma and auto shares lagged behind. Markets in Asia edged mostly lower.

At 09:20 IST, the barometer index, the S&P BSE Sensex, was up 236.78 points or 0.40% to 59,040.11. The Nifty 50 index added 74.85 points or 0.43% to 17,614.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.40% while the S&P BSE Small-Cap index advanced 0.77%.

The market breadth was strong. On the BSE, 2011 shares rose and 677 shares fell. A total of 141 shares were unchanged.

Stocks in Spotlight:

Bharat Electronics (BEL) rose 0.22%. BEL has signed an MoU with Smiths Detection, a global leader in threat detection and security inspection technologies, for offering advanced, high-energy scanning systems to the Indian market. The MoU will leverage the high-end, technological capabilities of both the firms to meet India's domestic security needs.

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GMR Infrastructure shed 0.38%. The company's board of directors has approved raising of funds of up to Rs 6,000 crore in one or more tranche(s) through issue of securities.

HFCL lost 0.13%. The board of directors of the company considered and approved raising of funds upto Rs 650 crores by way of private placement or preferential issue or public issue or rights issue or qualified institutions placement or through any other permissible mode and/or combination thereof, including by way of issue of equity shares/ preference shares/ bonds/ debentures/ non-convertible debt instruments/ any other securities.

One 97 Communications fell 2.69%. The company, which operates under the Paytm brand, on Sunday denied any link with the merchants that are under the Enforcement Directorate scanner in the Chinese loan app case. The ED on Saturday said it has conducted raids at six premises of online payment gateways, such as Razorpay, Paytm and Cashfree in Bengaluru, over the alleged irregularities in instant app-based loans "controlled" by Chinese persons.

Global markets:

Asian stocks are trading mixed on Monday as investors digest the results of a private survey on Chinese services sector activity. China's Caixin Services Purchasing Managers' Index came in at 55.0, compared with July's print of 55.5.

The au Jibun Bank Japan Services Purchasing Managers' Index dropped to a seasonally adjusted 49.5 for August, lower than 50.3 in July. The marginal decline marks the first contraction in service sector business activity since March, S&P said in the report, citing the recent spike in Covid cases in the nation.

US stocks closed lower on Friday, as early gains from a jobs report that showed a labor market that may be starting to loosen gave way to worries about the European gas crisis.

American employers slowed down their hiring in August in the face of rising interest rates, high inflation and sluggish consumer spending. The US government reported on Friday that the economy added 315,000 jobs last month, down from 526,000 in July and below the average gain of the previous three months. The unemployment rate rose to 3.7%, from a half-century low of 3.5% in July.

Meanwhile, the G-7 agreed to explore the prospect of imposing a ban on shipments of Russian oil above a certain price in June. The statement from the G-7 added that the price cap's effectiveness and impact would be closely monitored and revisited as necessary. The G-7 price cap on Russian oil comes as Western economic powers seek to deplete Russia's war chest.

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First Published: Sep 05 2022 | 9:26 AM IST

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