HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Indian markets maintain upward momentum
Aug-02-2021

Indian equity markets maintained their upward momentum in the noon session, following gains in Realty, Energy and Consumer Durables stocks. Healthy buying was observed in blue-chip stocks like Titan Company, Reliance Industries and Axis Bank. Besides, broader indices were also trading in green, supporting their larger peers. Sentiments were upbeat as India's manufacturing sector activities witnessed the strongest rate of growth in three months in July amid improved demand conditions and easing of some local COVID-19 restrictions. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months. Adding more positivity, Union Finance Minister Nirmala Sitharaman states that Goods and Services Tax (GST) collection for July 2021 has again crossed Rs 1 lakh crore with easing out of COVID-19 restrictions and added it indicates that the economy is recovering at a fast pace. On the global front, Asian markets were trading mostly higher despite worries over the spread of the Delta Covid variant as well as China's regulatory crackdown.

The BSE Sensex is currently trading at 52941.77, up by 354.93 points or 0.67% after trading in a range of 52840.58 and 52976.26. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.93%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were Realty up by 3.83%, Energy up by 1.51%, Consumer Durables up by 1.49%, Oil & Gas up by 1.21% and Consumer Discretionary was up by 1.17%, while Power was down by 0.01% was the only losing index on BSE.

The top gainers on the Sensex were Titan Company up by 2.91%, Reliance Industries up by 1.73%, Axis Bank up by 1.72%, Indusind Bank up by 1.24% and Mahindra & Mahindra was up by 1.23%. On the flip side, Tata Steel down by 1.01%, Power Grid Corp down by 0.56%, Tech Mahindra down by 0.50%, Bajaj Finserv down by 0.36% and Bajaj Auto was down by 0.24% were the top losers.

Meanwhile, growth of eight core infrastructure industries grew by 8.9 percent in June 2021 as compared to same month last year, mainly due to a low base effect and uptick in production of natural gas, steel, coal and electricity. The eight infrastructure sectors had contracted by 12.4 per cent in June 2020 due to the lockdown restrictions imposed to control the spread of coronavirus infections. In May this year, these key sectors had recorded a growth of 16.3 per cent, while it was 60.9 per cent in April. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).   

Among eight core sectors, Coal production having 10.33 percent weight increased by 7.4 per cent in June, 2021 over June, 2020 and its cumulative index increased by 8.0 per cent during April to June, 2021-22 over corresponding period of the previous year. Natural Gas production having 6.88 percent weight increased by 20.6 per cent in June, 2021 over June, 2020 and its cumulative index increased by 21.8 per cent during April to June, 2021-22 over the corresponding period of previous year. Petroleum Refinery production having 28.04 percent weight increased by 2.4 per cent in June, 2021 over June, 2020 and its cumulative index increased by 15.4 per cent during April to June, 2021-22 over the corresponding period of previous year. Fertilizers production having 2.63 percent weight increased by 2.0 per cent in June, 2021 over June, 2020 and its cumulative index decreased by 1.7 per cent during April to June, 2021-22 over the corresponding period of previous year.

Steel production having 17.92 percent weight increased by 25.0 per cent in June, 2021 over June, 2020 and its cumulative index increased by 86.0 per cent during April to June, 2021-22 over the corresponding period of previous year. Cement production having 5.37 percent weight increased by 4.3 per cent in June, 2021 over June, 2020 and its cumulative index increased by 52.9 per cent during April to June, 2021-22 over the corresponding period of previous year. Electricity generation having 19.85 percent weight increased by 7.2 per cent in June, 2021 over June, 2020 and its cumulative index increased by 16.4 per cent during April to June, 2021-22 over the corresponding period of previous year.  On the flip side, Crude Oil production having 8.98 percent weight declined by 1.8 per cent in June, 2021 over June, 2020 and its cumulative index declined by 3.4 per cent during April to June, 2021-22 over the corresponding period of previous year.

The CNX Nifty is currently trading at 15876.00, up by 112.95 points or 0.72% after trading in a range of 15834.65 and 15881.45. There were 40 stocks advancing against 9 stocks declining, 1 stock remain unchanged on the index.

The top gainers on Nifty were Titan Company up by 3.06%, Adani Ports up by 2.74%, Britannia Inds up by 2.44%, Eicher Motors up by 2.28% and Grasim Industries was up by 2.26%. On the flip side, UPL down by 1.92%, Tata Steel down by 1.15%, Power Grid Corp down by 0.53%, Tech Mahindra down by 0.48% and Bajaj Finserv was down by 0.42% were the top losers.

Asian markets were trading mostly higher; Shanghai Composite gained 58.83 points or 1.73% to 3,456.19, Taiwan Weighted strengthened 255.87 points or 1.48% to 17,503.28, Nikkei 225 surged 497.43 points or 1.82% to 27,781.02, Hang Seng increased 198.80 points or 0.77% to 26,159.83, KOSPI rose 20.72 points or 0.65% to 3,223.04 and Jakarta Composite was up by 15.14 points or 0.25% to 6,085.18. On the other hand, Straits Times was down by 11.81 points or 0.37% to 3,155.13.
  RELATED NEWS >>
Most Viewed >>
April 06 , 2024
RBI to allow UPI payments from PPI wallets via
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 19 , 2024
Lok Sabha Elections 2024: How will they impact
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.