Indices trade with tiny gains

Key benchmark indices were trading with small gains amid initial volatility as firmness in Asian stocks overshadowed domestic data showing Q1 June 2017 gross domestic product falling to a three-year low. At 9:25 IST, the barometer index, the S&P BSE Sensex rose 25.50 points or 0.08% at 31,755.99. The Nifty 50 gained 6.20 points or 0.06% at 9,924.10.

The S&P BSE Mid-Cap index rose 0.59%. The S&P BSE Small-Cap index gained 0.55%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 828 shares rose and 285 shares fell. A total of 47 shares were unchanged.

Dr Reddy's Laboratories (up 6.66%) and Bajaj Auto (up 1.98%) gained.

Wipro declined 0.35% to Rs 297.45. The company said that the board of directors and shareholders, respectively, have approved the proposal to buyback up to 34.37 crore fully paid-up equity shares of the company at a price of Rs 320 per equity share on a proportionate basis through the tender offer process. The announcement was made before market hours today, 1 September 2017.

NTPC fell 0.41% after the company disclosed after market hours yesterday, 31 August 2017, that Life Insurance Coporation of India (LIC) raised its stake in the company to 14.24% from 11.15% earlier. LIC purchased 3.089% stake in NTPC via the recently concluded offer for sale of shares. The two-day OFS opened for institutional investors on 29 August 2017, and retail investors got to bid on 30 August 2017. The government received bids for about 7% stake in NTPC, which will fetch over Rs 9000 crore to the exchequer.

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 will unveil the result of a monthly survey on the performance of India's manufacturing sector in August 2017 at 10:30 IST today, 1 September 2017. The Nikkei Manufacturing purchasing managers index (PMI) in India fell to 47.90 in July of 2017 from 50.90 in June.

Overseas, Asian stocks gained after American and Chinese economic data lifted equities on Wall Street and before US jobs numbers ahead of a long weekend. 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.

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