Indices scale record high in early trade; breadth strong

Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 194.12 points or 0.34% at 58,046.66. The Nifty 50 index was up 50.60 points or 0.29% at 17,284.75. The Sensex hit record high of 58,115.69 in early trade. The Nifty scaled record high of 17,311.95 in early trade.

The S&P BSE Mid-Cap index was up 0.37%. The S&P BSE Small-Cap index was up 0.44%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1688 shares rose and 765 shares fell. A total of 115 shares were unchanged.

On the macro front, India's exports jumped 45.17% to $33.14 billion in August as against $22.83 billion in the same month last year, according to the commerce ministry's provisional data. Imports in August rose 51.47% to $47.01 billion, as against $31.03 billion in the corresponding month of 2020. The trade deficit in August 2021 was $13.87 billion, compared to $8.2 billion in the year-ago period.

Stocks in news:

Reliance Industries (RIL) rose 1.42%. RIL's subsidiary Reliance Retail Ventures (RRVL) has now taken sole control of Just Dial. On July 20, 2021, RRVL acquired 1.31 crore equity shares of Just Dial at a price of Rs.1,020/- per equity share from Mr. VSS Mani. On September 1, 2021, Just Dial, pursuant to the preferential issue, allotted 2.12 crore equity shares at a price of Rs. 1022.25/- per share. Reliance Retail now holds 40.98% in Just Dial.

Hindustan Aeronautics (HAL) rose 1.81%. HAL said that a meeting of the board of directors of the company will be held on 21 September 2021, to consider the sub-division of equity shares of the company.

Granules India rose 1.02%. Granules India has received licence from Defence Research & Development Organisation (DRDO), Ministry of Defence, Government of India, to manufacture and market of 2- Deoxy-D-Glucose (2-DG). Developed by DRDO, 2-DG has been granted permission by Drug Controller General of India (DCGI) for emergency use of this drug as adjunct therapy in moderate to severe Covid 19 patients.

RailTel Corporation of India gained 3.32%. RailTel Corporation of India has received a Contract from Directorate of Information Technology, Indian Air Force, Ministry of Defence for implementation of Secure OPS Network for value of Rs. 299.95 Crore (Inclusive of GST). The work is to be executed over a period of 12 months.

Jammu & Kashmir Bank rose 1.5%. Jammu & Kashmir Bank said that the bank's board has approved raising of equity share capital upto Rs 1,000 crore in one or more tranches by way of Rights Issue/ Preferential Allotment/Private Placement/Qualified Institutional Placement (QIP) or any other approved mode. The board also approved raising Rs 1,000 crore by way of non-convertible, Redeemable, Unsecured, BASEL III Compliant, TIER 2 bonds in the nature of debentures ('debentures') on a private placement basis.

IRB Infrastructure Developers rose 2.3%. IRB Infrastructure Developers has emerged as a preferred bidder for Chittoor - Thachur Six Laning Highway Hybrid Annuity Project in Tamil Nadu.

Global Markets:

Overseas, Asian stocks rose on Friday as investors look ahead to the release of a private survey on China's services sector activity in August.

The S&P 500 and Nasdaq eked out record finishes on Thursday, while the Dow also posted a modest gain, as higher commodity prices helped energy names recover ground and the latest jobs data left investors unfazed about existing positions.

The US trade deficit narrowed more than expected in July as imports declined likely because of shortages and a shift in domestic spending from goods to services. The Commerce Department said on Thursday that the trade gap fell 4.3% to USD 70.1 billion. Data for June was revised to show the deficit at USD 73.2 billion instead of USD 75.7 billion as previously reported.

The number of Americans filing new claims for jobless benefits fell last week. Initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 340,000 for the week ended August 28, the lowest level since mid-March 2020.

Back home, domestic equity benchmarks clocked robust gains on Thursday, amid buying interest in FMCG and IT stocks. The barometer index, the S&P BSE Sensex, surged 514.33 points or 0.9% at 57,852.54. The Nifty 50 index advanced 157.90 points or 0.92% at 17,234.15.

Foreign portfolio investors (FPIs) bought shares worth Rs 348.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 381.70 crore in the Indian equity market on 2 September, provisional data showed.

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