Market continued to trade firm with modest gains in afternoon trade. At 13:19 IST, the barometer index, the S&P BSE Sensex rose 136.14 points or 0.43% at 31,866.63. The Nifty 50 gained 41.75 points or 0.42% at 9,959.65. Domestic data showing Q1 June 2017 gross domestic product falling to a three-year low raised expectations that the central bank may cut rates to perk up growth. Firmness in global stocks and private data showing rebound in India's manufacturing activity in August also boosted sentiment.
The S&P BSE Mid-Cap index rose 0.93%. The S&P BSE Small-Cap index gained 1.02%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,591 shares rose and 831 shares declined. A total of 128 shares were unchanged.
After opening higher and witnessing a bout of initial volatility, key indices strengthened and hit fresh intraday high in morning trade. Stocks held firm later during the session.
IT stocks declined. TCS (down 1.89%), Persistent Systems (down 0.78%), Tech Mahindra (down 0.77%) and HCL Technologies (down 0.34%) edged lower.
Infosys rose 0.37% after the company said it has started engaging in broad-based shareholder consultations to determine what further actions, if any, the company can take to ensure that it continues to adhere to high governance standards. During such consultations, no material unpublished price sensitive information or financial updates will be provided, it added. The announcement was made during market hours today, 1 September 2017.
Wipro declined 0.67% at Rs 297.05. The company said that the board of directors and shareholders, respectively, approved the proposal to buyback up to 34.37 crore fully paid-up equity shares of the company at a price of Rs 320 per equity share on a proportionate basis through the tender offer process. The announcement was made before market hours today, 1 September 2017.
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FMCG stocks were mostly higher. Emami (up 0.84%), Britannia Industries (up 0.75%), Colgate-Palmolive (India) (up 0.58%) and Godrej Consumer Products (up 0.57%) gained. Nestle India (down 1.11%), Dabur India (down 0.71%) and Hindustan Unilever (down 0.37%) declined.
Mahindra & Mahindra (M&M) rose 0.05% at Rs 1,345.45 after the company said its total auto sales rose 4% to 42,116 units in August 2017 over August 2016. The company's total tractor sales rose 22% to 16,516 units in August 2017 over August 2016. The announcement was made during market hours today, 1 September 2017.
Dr Reddy's Laboratories surged 8.1% at Rs 2,184 after the company issued a clarification with regard to media reports. The company said that on 31 August 2017, the United States District Court, for the District of Delaware, issued its judgment in favour of Dr. Reddy's Laboratories, ruling that the proposed generic version of Suboxone (buprenorphine and naloxone) sublingual film does not infringe US Patents as asserted by Indivior.
Suboxone (buprenorphine and naloxone) sublingual film is indicated for the maintenance treatment of opioid dependence. Reckitt Benckiser developed Suboxone sublingual film using MonoSol Rx's PharmFilm technology. In December 2014, Reckitt Benckiser de-merged its pharmaceuticals business as Indivior. The US Food and Drug Administration (USFDA) has approved Suboxone film in four strengths viz. 2 mg /0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg (buprenorphine/naloxone). The announcement was made during market hours today, 1 September 2017.
On macro data front, which were released after market hours yesterday, 31 August 2017, gross domestic product (GDP) at constant (2011-12) prices in Q1 June 2017 is estimated at Rs 31.10 lakh crore, as against Rs 29.42 lakh crore in Q1 June 2016, showing a growth rate of 5.7%. Quarterly gross value added (GVA) at basic price at constant (2011-2012) prices for Q1 of 2017-18 is estimated at Rs 29.04 lakh crore, as against Rs 27.51 lakh crore in Q1 June 2016, showing a growth rate of 5.6%.
The eight core industries comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 2.4% in July. Its cumulative growth during April to July, 2017-18 was 2.5%.
The fiscal deficit stood at Rs 5.05 trillion ($79.01 billion) for April-July or 92.4% of the budgeted target for the current fiscal year that ends in March 2018, showed a data released by the government. The data furnished by the Comptroller General of Accounts (CAG), showed that the deficit was 73.7% of the full-year target during the corresponding period last year. Net tax receipts in the first four months of the financial year 2017-18 were Rs 2.58 trillion, the data added. The government aims to trim the fiscal deficit to 3.2% of gross domestic product (GDP) in 2017-18 compared with 3.5% in the previous year.
Markit Economics said today, 1 September 2017 that August saw a rebound in manufacturing new orders and output across India. The expansions were modest, but represented a substantial turnaround from July's GST-related contraction. Up from July's 101-month low of 47.9 to 51.2 in August, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) signalled a renewed improvement in the health of the sector. The upturn reflected resumed growth of new orders, production and employment.
India Meteorological Department said cumulative area weighted rainfall for the country as a whole till 30 August 2017 in the ongoing monsoon season was 3% lower than the normal rainfall. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Overseas, European stocks opened higher as investors geared up for economic data releases, while taking note of the positive trading seen overseas. Asian stocks gained after positive economic data in China. The financial markets looked to the US jobs report for August due later in the global day. China's manufacturing activity expanded at the fastest pace in six months in August, a private survey showed, buoyed by a surge in export orders and higher prices. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 51.6 in August, compared with 51.1 in July.
US stocks advanced yesterday, 31 August 2017, with the main indexes posting their fifth consecutive monthly gain as investors responded to strong economic data and drew some cautious hope from the Donald Trump administration's latest promises for long-awaited details of a tax reform plan.
US consumer spending increased by less than estimated in July, though rising incomes and an upward revision to June purchases put the economy on a stable footing for the second half.
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