Key benchmark indices held firm in mid-morning trade as firmness in Asian stocks and private data showing rebound in India's manufacturing activity in August boosted sentiment. At 11:20 IST, the barometer index, the S&P BSE Sensex rose 115.45 points or 0.37% at 31,849.01. The Nifty 50 gained 36.20 points or 0.36% at 9,954.10. 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.
The S&P BSE Mid-Cap index rose 0.81%. The S&P BSE Small-Cap index gained 0.91%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were more than two gainers for every loser on the BSE. 1,535 shares rose and 665 shares fell. A total of 105 shares were unchanged.
Coal India gained 0.29% 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.
Realty stocks jumped on expectations that the Reserve Bank of India may further cut policy rates to perk up growth after the latest data showed Q1 June 2017 GDP falling to 3-year low. Purchases of both residential and commercial property are largely driven by finance. DLF (up 2.62%), D B Realty (up 1.76%), Indiabulls Real Estate (up 6.4%), Unitech (up 1.22%), NBCC (up 0.85%), Godrej Properties (up 1.3%), Housing Development & Infrastructure (HDIL) (up 2.5%), and Oberoi Realty (up 1.82%) edged higher.
Metal & mining stocks gained on positive economic data in China. JSW Steel (up 0.37%), Bhushan Steel (up 1.23%), Hindustan Copper (up 0.64%), Vedanta (up 0.63%), Hindalco Industries (up 0.86%), Hindustan Zinc (up 1.38%), Jindal Steel & Power (up 0.8%), Tata Steel (up 0.71%), Steel Authority of India (Sail) (up 0.74%), National Aluminum Company (up 0.69%) and NMDC (up 2.21%) gained. China is the world's largest consumer of steel, copper and aluminum.
Dr Reddy's Laboratories jumped 8.45% after report suggested that the District Court of Delaware has ruled in favour of the company against Reckitt Benckiser for the blockbuster drug Suboxone. Judge Richard Andrews, who presided over the hearing, reportedly said that plaintiffs failed to meet their burden of showing Dr Reddy's infringes the asserted claims of the patent.
Kridhan Infra fell 3.81% after consolidated net profit fell 7.42% to Rs 10.72 crore on 29.53% increase in total revenue to Rs 187.60 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 31 August 2017.
Shankara Building Products rose 4.42% after the company announced that it has started new processing facility in Secunderabad, Telangana to capitalize on the growing requirements of the region through network of Telangana state retail outlets. Further, the company has relocated processing capacity from Surat, Gujarat to Chegunta, Hyderabad. The relocation will ensure better utilization levels on back of increased availability of raw materials which was hampering production and sales in Surat. 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 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, 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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