Key benchmark indices extended gains and hit fresh intraday high in morning trade as firmness in Asian stocks aided gains overshadowing domestic data showing Q1 June 2017 gross domestic product falling to a three-year low. At 10:20 IST, the barometer index, the S&P BSE Sensex rose 128.43 points or 0.4% at 31,858.92. The Nifty 50 gained 38.70 points or 0.39% at 9,956.60.
The S&P BSE Mid-Cap index rose 0.79%. The S&P BSE Small-Cap index gained 0.8%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers for every loser on the BSE. 1,413 shares rose and 551 shares fell. A total of 88 shares were unchanged.
Cement stocks gained. ACC (up 0.7%), Shree Cement (up 0.42%), Ambuja Cements (up 0.91%), and UltraTech Cement (up 0.08%) gained.
Grasim Industries advanced 2.17%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Telecom stocks were mixed. Tata Teleservices (Maharashtra) (up 1.2%) and Reliance Communications (up 0.86%) gained. Bharti Airtel (don 0.44%) and Idea Cellular (down 0.88%) declined.
Shares of Bharti Infratel rose 0.15%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Bajaj Auto rose 1.64% after total sales rose 3% to 3.35 lakh units in August 2017 over August 2016. Domestic sales was flat at 2 lakh units in August 2017 over August 2016. Export sales rose 7% to 1.34 lakh units in August 2017 over August 2016. The announcement was made before market hours today, 1 September 2017.
Maruti Suzuki India rose 0.94% after total sales rose 23.8% to 1.63 lakh units in August 2017 over August 2016. Domestic sales rose 26.7% at 1.52 lakh units in August 2017 over August 2016. Export sales fell 4.7% to 11,701 units in August 2017 over August 2016. The announcement was made during market hours today, 1 September 2017.
Axis Bank fell 0.11% after the bank said that it has exposure to 12 select accounts as on 30 June 2017 referenced in RBI directions on 28 August 2017 for which viable resolution plan should be initiated by 13 December 2017. The announcement was made before market hours today, 1 September 2017.
Total fund based outstanding of the bank on these accounts was Rs 1843 crore and non fund based outstanding was Rs 649 crore. Around 75% of the outstanding was secured.
Alembic Pharmaceuticals fell 0.05%. The company said that it received EU GMP (European Union Good Manufacturing Practice) Certificate for the audit conducted at the company's formulation facility at Panelav in Gujarat from 8 August 2017 to 10 August 2017. The announcement was made after market hours yesterday, 31 August 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 will unveil the result of a monthly survey on the performance of India's manufacturing sector in August 2017 at 10:30 IST today, 1 September 2017. The Nikkei Manufacturing purchasing managers index (PMI) in India fell to 47.90 in July of 2017 from 50.90 in June.
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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