All the sectoral indices on the NSE were in the green. Sentiment was upbeat as the central government yesterday issued new guidelines for opening up of more activities in areas outside the containment zones. Strong manufacturing PMI for September also supported buying.
The broader market lagged the benchmarks. The S&P BSE Mid-Cap index was up 0.72% while the S&P BSE Small-Cap index was up 0.84%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1422 shares rose and 824 shares fell. A total of 144 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 712.48 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 409.47 crore in the Indian equity market on 30 September, provisional data showed.
COVID-19 Update:
India reported 9,40,705 active cases of COVID-19 infection and 98,678 deaths while 52,73,201 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased from 52 in August to 56.8 in September, signalling back-to-back improvements in the health of the sector. Moreover, the latest reading was the highest in over eight-and-a-half years.
The output for India's eight core industries contracted for the sixth straight month, dropping 8.5% in August 2020. The production of eight core sectors had contracted 0.2% in August 2019, showed data released by the Commerce and Industry Ministry on Wednesday. Barring coal and fertiliser, all sectors crude oil, natural gas, refinery products, steel, cement and electricity recorded negative growth in August 2020.
Buzzing Segment:
Shares of PVR (up 8.08%) and Inox Leisure (up 6.95%) rallied, following the government's guideline permitting opening of cinemas, theatres and multiplexes with up to 50% of their seating capacity from 15 October.
The Ministry of Home Affairs (MHA) issued new guidelines on 30 September, for opening up of more activities in areas outside the containment zones. In these guidelines, which come into effect from 1 October 2020, cinemas/ theatres/ multiplexes will be permitted to open with upto 50% of their seating capacity, for which, standard operating procedure (SOP) will be issued by Ministry of Information & Broadcasting.
The Multiplex Association of India (MAI) welcomed the government's decision and said that cinemas are committed to ensure a safe, secure and a hygienic cinema going experience for the people.
Stocks in Spotlight:
Punjab National Bank (PNB) fell 1.22% to Rs 28.20 after the bank reported a borrowal fraud of Rs 1203.26 crore in non-performing assets (NPA) account of Sintex Industries (SIL) at Large Corporate Branch at Ahmedabad. PNB further said it has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms.
MOIL rose 1.43% to Rs 142.25 after the company said it hiked prices of different grades of manganese ore and other products, effective from 1 October 2020. The prices of all grades of ferro, SMGR grades (Mn30% & Mn25%), fines and chemical grades have been increased by about 7.5% from 1 October 2020 on the prices prevailing since 1 September 2020.
Global Markets:
Asian equities were trading higher tracking overnight gains in US stocks. Markets in China, Hong Kong, South Korea and Taiwan are closed on Thursday for holidays. Japan's Tokyo Stock Exchange suspended trading on Thursday due to a technical issue.
On the economic data front, the headline large manufacturers index in the Bank of Japan's quarterly tankan business sentiment survey came in at minus 27. Still, that was better than the minus 34 reading in June.
In US, stocks climbed in volatile trading on Wednesday amid rising hopes for further coronavirus stimulus.
Stocks cut gains in the final hour of trading after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal. The pair will continue talks as they try to craft a fifth package that could pass both chambers of Congress. The market soared earlier in the session after Mnuchin said lawmakers were giving the bill "a serious try."
Meanwhile, Moderna's experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine. However, as per reports Moderna's vaccine won't be ready before the November election.
Sentiment was helped by better-than-expected economic data. ADP's monthly private-sector jobs count showed growth of 749,000 in September. Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.
The US economy plunged at a record rate in the spring. The Commerce Department reported Wednesday that the gross domestic product, the economy's total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago.
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