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Bourses trim some gains in late afternoon session
Aug-02-2021

Indian equity benchmarks trimmed some of gains but continued to show a positive trend in late afternoon session. Titan Company, Reliance Industries and Axis Bank were the prime gainers among heavy-weights. Traders remained optimistic after India’s unemployment rate fell to a four-month low of 6.95% in July, staging a near-complete recovery in all parameters of the labour markets, which were hit by the second wave of the pandemic. The labour participation rate, unemployment rate and employment rate have all bounced back to close to their March 2021 levels. Some support also came, 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. Sector wise, coal sector remained in focus, as 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.

On the global front, Asian markets were trading mostly in green with Philippine equities leading gains, tracking a rebound in Chinese shares, while currencies in the region weakened on rising COVID-19 cases. European markets were trading higher with rising to a new record on earnings updates and easing concern about China’s regulatory crackdown.

The BSE Sensex is currently trading at 52,843.91, up by 257.07 points or 0.49% after trading in a range of 52840.58 and 52986.77. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.90%, while Small cap index was up by 1.10%.

The top gaining sectoral indices on the BSE were Realty up by 4.69%, Energy up by 1.77%, Oil & Gas up by 1.53%, Consumer Discretionary up by 1.19% and Consumer Durables was up by 1.19%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were Titan Company up by 2.75%, Reliance Industries up by 1.92%, Axis Bank up by 1.88%, Mahindra & Mahindra up by 1.48% and Infosys up by 1.43%. On the flip side, Tata Steel down by 1.45%, NTPC down by 0.68%, Power Grid down by 0.64%, Bajaj Finserv down by 0.63% and Tech Mahindra down by 0.40% were the top losers.

Meanwhile, Indian manufacturing activity improved in the month of July, as output, new orders, exports, quantity of purchases and input stocks all returned to expansion territory, while a marginal increase in employment ended a 15-month sequence of job shedding. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 55.3 in July as against 48.1 in June.

The report further said that factory orders rose amid reports of improved demand and the easing of some local COVID-19 restrictions. The upturn was sharp and compared with a marked decline in June. Strengthening international demand contributed to the uptick in total order books. New export orders expanded markedly in July, following a moderate contraction in June.

On the price front, with demand for inputs outstripping supply, there was another substantial increase in purchasing prices. The rate of cost inflation remained above its long-run average, but eased to a seven-month low. Output charges also increased at a slower rate, the weakest in 2021 so far. But here the rate of inflation was slight and below its long-run average.

The CNX Nifty is currently trading at 15,851.35, up by 88.30 points or 0.56% after trading in a range of 15834.65 and 15889.90. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 3.06%, Titan Company up by 2.95%, Eicher Motors up by 2.90%, Britannia up by 2.89% and Adani Ports up by 2.41%. On the flip side, UPL down by 2.31%, Tata Steel down by 1.53%, Power Grid down by 0.73%, NTPC down by 0.72% and Bajaj Finserv down by 0.54% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 497.43 points or 1.82% to 27,781.02, Hang Seng increased 274.77 points or 1.06% to 26,235.80, Taiwan Weighted strengthened 255.87 points or 1.48% to 17,503.28, Shanghai Composite gained 66.93 points or 1.97% to 3,464.29, Jakarta Composite soared 26.50 points or 0.44% to 6,096.54 and KOSPI was up by 20.72 points or 0.65% to 3,223.04. On the flip side, Straits Times was down by 11.30 points or 0.36% to 3,155.64.

European markets were trading higher, UK’s FTSE 100 increased 65.74 points or 0.93% to 7,098.04, France’s CAC increased 55.57 points or 0.84% to 6,668.33 and Germany’s DAX was up by 42.74 points or 0.27% to 15,587.13.
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