Market held firm after hitting fresh intraday high in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex rose 134.80 points or 0.42% at 31,865.29. The Nifty 50 gained 46 points or 0.46% at 9,963.90. 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 0.8%. The S&P BSE Small-Cap index gained 0.88%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,577 shares rose and 909 shares declined. A total of 144 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.
Most capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.74%), BEML (up 5.29%), ABB India (up 0.28%), Bharat Electronics (up 0.89%), L&T (up 0.26%), and Siemens (up 0.59%) gained. Havells India (down 0.3%) and Thermax (down 0.41%) declined.
Shares of power generation and power distribution companies were mixed. Torrent Power (up 0.98%), Tata Power Company (up 1.58%), Reliance Infrastructure (up 3.73%) and Reliance Power (up 2.59%) gained. NHPC (down 0.3%), Adani Power (down 1.2%), and Power Grid Corporation of India (down 0.8%) declined.
NTPC fell 0.15% after the company disclosed after market hours yesterday, 31 August 2017, that Life Insurance Coporation of India (LIC) raised its stake in the company to 14.24% from 11.15% earlier. LIC purchased 3.089% stake in NTPC via the recently concluded offer for sale of shares. The two-day OFS opened for institutional investors on 29 August 2017, and retail investors got to bid on 30 August 2017. The government received bids for about 7% stake in NTPC, which will fetch over Rs 9000 crore to the exchequer.
Coal India gained 0.38% after the company said that board of directors approved revision in sizing charges and rapid loading silo (RLS) charges and revision in additional charges and for supply of slack and steam coal. Due to this revision, the company will generate approximate additional annual revenue of Rs 527 crore. The announcement was made during market hours today, 1 September 2017.
Reliance Industries gained 1.24% after the company said that it has issued and allotted on private placement basis the second tranche of unsecured non-convertible redeemable debentures aggregating Rs 2500 crore. The announcement was made during market hours today, 1 September 2017.
Minda Industries advanced 4.68% to Rs 886 after a bulk deal of 1.20 lakh shares was executed on the scrip at Rs 855.50 per share at 11:07 IST on BSE.
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 rose as Euro zone manufacturing activity accelerated in August, clocking the fastest rise in export orders since February 2011 despite a strengthening currency, a business survey showed. IHS Markit's Manufacturing Purchasing Managers' Index for the euro zone rose to 57.4 in August, in line with the preliminary reading and up from 56.6 in July.
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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