Trading for the September month started on a positive note as key benchmark indices provisionally settled with modest gains as 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 barometer index, the S&P BSE Sensex rose 144.31 points or 0.45% at 31,874.80, as per the provisional closing data. The Nifty 50 gained 53.05 points or 0.53% at 9,970.45, as per the provisional closing data. Firmness in global stocks and private data showing rebound in India’s manufacturing activity in August also boosted sentiment. Indices gained for the third day in a row.
The S&P BSE Mid-Cap index provisionally rose 0.95%. The S&P BSE Small-Cap index provisionally gained 0.78%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,592 shares rose and 994 shares declined. A total of 150 shares were unchanged.
The total turnover on BSE amounted to Rs 3311.10 crore, lower than the turnover of Rs 3695.28 crore registered during the previous trading session.
After opening higher and witnessing a bout of initial volatility, key indices strengthened and hit fresh intraday high in morning trade on firm Asian stocks. After holding firm till afternoon trade, indices extended gains in mid-afternoon trade tracking higher European stocks. A bout of volatility was witnessed in late trade.
Eicher Motors rose 0.83% after total motorcycles sales rose 22% to 67,977 units in August 2017 over August 2016. The announcement was made during trading hours today, 1 September 2017.
Separately, sale volume of VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors rose 9.06% to 4,571 units in August 2017 over August 2016.
Tata Motors jumped 4.04% after the company said passenger and commercial vehicles total sales (including exports) rose 14% at 48,988 vehicles in August 2017 over August 2016. The company’s domestic sales of commercial and passenger vehicles rose 26% to 45,906 units in August 2017 over August 2016, due to growing demand across segments and increased positive customer sentiments. The announcement was made during market hours today, 1 September 2017.
The overall commercial vehicles sales in August 2017, in the domestic market were at 31,566 units higher by 34% over August 2016. The sales grew on the back of growing demand across segments supported by the continued ramp-up in production of BSIV vehicles since April this year. The company also passed on the benefits of GST to consumers by reducing the prices of its vehicles across all commercial vehicle segments. The company’s sales from exports fell 53% to 3 082 units in August 2017 over August 2016, due to continued drop in industry volumes in Sri Lanka and Nepal.
Bajaj Auto rose 3.9% after total sales rose 3% to 3.35 lakh units in August 2017 over August 2016. Domestic sales was flat at 2 lakh units in August 2017 over August 2016. Export sales rose 7% to 1.34 lakh units in August 2017 over August 2016. The announcement was made before market hours today, 1 September 2017.
Dr Reddy’s Laboratories surged 9.48% after the company issued a clarification with regard to media reports. The company said that on 31 August 2017, the United States District Court, for the District of Delaware, issued its judgment in favour of Dr. Reddy’s Laboratories, ruling that the proposed generic version of Suboxone (buprenorphine and naloxone) sublingual film does not infringe US Patents as asserted by Indivior.
Suboxone (buprenorphine and naloxone) sublingual film is indicated for the maintenance treatment of opioid dependence. Reckitt Benckiser developed Suboxone sublingual film using MonoSol Rx’s PharmFilm technology. In December 2014, Reckitt Benckiser de-merged its pharmaceuticals business as Indivior. The US Food and Drug Administration (USFDA) has approved Suboxone film in four strengths viz. 2 mg /0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg (buprenorphine/naloxone). 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 3.38%), D B Realty (up 5.68%), Indiabulls Real Estate (up 5.22%), Unitech (up 2.44%), NBCC (up 1.58%), Godrej Properties (up 2.68%), Housing Development & Infrastructure (HDIL) (up 2.98%), and Oberoi Realty (up 2.48%) edged higher.
Garware-Wall Ropes jumped 9.91% after net profit rose 31.14% to Rs 25.98 crore on 13.71% increase in total income to Rs 250.47 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 1 September 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, 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.