Key benchmark indices provisionally settled with small gains after a volatile and rangebound session of trade as firmness in European stocks perked up indices in the latter half of the session. The barometer index, the S&P BSE Sensex, rose 93.62 points or 0.3% at 31,740.08, as per the provisional closing data. The Nifty 50 index gained 31.15 points or 0.32% at 9,915.55, as per the provisional closing data.
Trading was rangebound as investors maintained caution ahead of announcement of Q1 June 2017 gross domestic product data later during the day. Volatility was witnessed due to expiry of near month futures & options contracts today, 31 August 2017. Indices gained for the second straight day.
The Sensex rose 110.72 points or 0.34% at the day’s high of 31,757.18 in late trade, its highest level since 28 August 2017. It fell 94.61 points or 0.29% at the day’s low of 31,551.85 in mid-morning trade. The Nifty rose 40.70 points or 0.41% at the day’s high of 9,925.10 in late trade, its highest level since 28 August 2017. It shed 27.45 points or 0.27% at the day’s low of 9,856.95 in early trade.
After opening with small gains, indices soon slipped into the red and traded with small losses till mid-morning trade. Indices recovered and turned positive in early afternoon trade. Stocks swung between gains and losses around the flat line till mid-afternoon trade. Indices regained strength in late trade on firm European stocks.
The S&P BSE Mid-Cap index rose 0.22%, underperforming the Sensex. The S&P BSE Small-Cap index gained 0.84%, outperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,510 shares rose and 1,062 shares fell. A total of 136 shares were unchanged.
The total turnover on BSE amounted to Rs 3683.39 crore, higher than the turnover of Rs 2478.72 crore registered during the previous trading session.
Reliance Industries (RIL) gained 1.99% after the company said it will make an offer for issuing non-convertible debentures (NCDs) worth Rs 2500 crore next week. The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and for any other purpose in the ordinary course of business, it said. The announcement was made after market hours yesterday, 30 August 2017.
Meanwhile, RIL said it fixed 9 September 2017 as the record date for the proposed 1:1 bonus issue of the company.
Separately, the company said that it has issued and allotted first tranche of unsecured, non convertible redeemable debentures aggregating Rs 5000 crore on private placement basis. The announcement was made during market hours today, 31 August 2017.
Realty stocks rose. Sobha (up 2.85%), Godrej Properties (up 2.55%), Prestige Estates Projects (up 1.05%), DLF (up 1.48%), Indiabulls Real Estate (up 2.4%) and Oberoi Realty (up 0.35%) advanced. Unitech fell 1.07%.
Idea Cellular rose 3.52%. With respect to news item titled “TRAI received complaints from customers of the company charging higher amount to the customers” the company clarified that TRAI direction does not refer to any penalty but only relates to a direction to the company to deposit around Rs 2.97 crore in the Telecom Consumers Education and Protection Fund which relates to FY 20015-06 and is an industry issue. The clarification was issued during market hours today, 31 August 2017.
Dhunseri Tea & Industries lost 2.66% after the company reported net loss of Rs 2.45 crore in Q1 June 2017 as compared with net profit of Rs 5.58 crore in Q1 June 2016. The announcement was made after market hours yesterday, 30 August 2017.
RPP Infra Projects rose 1.96% after the company said it bagged a construction order worth Rs 38.90 crore from Sumitomo Electric Industries. The announcement was made during trading hours today, 31 August 2017. Scope of the work includes construction of concrete duct bank and supply of all necessary items including HDPE pipes for 13.50 kilometres from Vadakkancherry. The work to be completed within 18 months.
On the macro front, the government will announce data on Q1 June 2017 gross domestic product (GDP) after market hours today, 31 August 2017. India’s GDP rose at moderated pace of 6.1% in Q4 March 2017, which is the lowest pace of growth in last nine quarters. The GDP growth decelerated sharply from 7% growth recorded in the preceding last quarter and 8.7% surge posted in the corresponding quarter last year.
Overseas, European stocks edged higher after inflation in the eurozone picked up markedly in August and the jobless rate remained at its lowest level for over eight years. The European Union’s statistics agency said that the region’s annual inflation rate rose to 1.5% from 1.3% in July, propelled by energy prices.
Asian stocks were mixed amid volatility. An official gauge of China’s factory activity rose in August, government data showed. China’s official manufacturing purchasing managers’ index rebounded to 51.7 from July’s 51.4. The index has now stayed above the 50 mark, which separates an expansion of activity from a contraction, for 13 months.
China’s official non-manufacturing purchasing-managers’ index, a measure of activity outside the nation’s factory gates, fell for a second straight month to 53.4 in August from 54.5 in July, the National Bureau of Statistics said.
Japan’s industrial output fell more than expected in July. Industrial output fell 0.8% in July from the previous month, dragged down by production of semiconductor production equipment, turbines and power generators, preliminary data from the Ministry of Economy, Trade and Industry showed.
US stocks climbed yesterday, 30 August 2017, after the Commerce Department said the economy grew faster than expected in the second quarter. President Donald Trump also made a speech calling on Congress to act to advance tax reform, a proposal favoured by many businesses. The Commerce Department said the US economy grew at a 3% annual rate over the three months to the end of June, up from an earlier 2.6% estimate. The revision means that growth for the quarter was at the fastest rate since the first quarter of 2015.
Private-sector hiring skyrocketed in August, according to data released. Employers added a seasonally adjusted 237,000 jobs during the month, payroll processor ADP said. That was a big gain from the 178,000 jobs ADP reported in July, and which it revised up to 201,000.