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Indices extend losses; Nifty holds 17,100

Capital Market 

The benchmark indices further extended losses in early afternoon trade. The Nifty held above 17,100 level. Realty shares extended recent gains.

At 12:20 IST, the barometer index, the S&P BSE Sensex, shed 130.24 points or 0.23% at 57,422.15. The Nifty 50 index lost 28.80 points or 0.17% at 17,103.40.

The Sensex hit a record high of 57,918.71 while the Nifty hit all time high of 17,225.75 in morning trade today.

In the broader market, the S&P BSE Mid-Cap index added 0.47% while the S&P BSE Small-Cap index rose 0.06%. Both these indices outperformed the Sensex.

The market breadth was negative. On the BSE, 1,384 shares rose and 1,628 shares fell. A total of 171 shares were unchanged.

Economy:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 52.3 in August, pointing to an improvement in overall operating conditions for the second straight month. The headline figure fell from 55.3 in July, indicating a softer rate of growth that was subdued in the context of historical survey data.

India's gross domestic product (GDP) surged 20.1% in the April-June quarter of the current fiscal. The GDP logged a high growth amid the opening of the economy after the lockdown to arrest Covid-19 and low base effect as the economy witnessed a contraction of 24.4% in the first quarter of 2020-21 fiscal.

Briefing the media, Chief Economic Advisor Krishnamurthy Subramanian said the banking sector has now developed a cushion to withstand impending bad loans. He said inflation is expected to be in the 5 to 6% range going forward. Subramanian said India is poised for stronger growth from structural reforms, government CAPEX push and rapid inoculation. He said high-frequency indicators such as the Google mobility indicator shows activity has picked up, even grocery activity has picked up to pre-COVID 19 levels. Subramanian said MNREGA work requirement has declined in August. He said power consumption is indicating strong recovery as well.

Further, India's fiscal deficit for April-July period stood at Rs 3.21 lakh crore ($43.98 billion), which is 21.3% of the full fiscal's target. The deficit figures this fiscal appear much better than the previous financial year, when it soared to 103.1% of the estimate, mainly on account of a jump in expenditure to deal with the COVID-19 pandemic.

Meanwhile, the production of eight core industries rose by 9.4% in July against a 7.6% decline in the year-ago month. According to official data released on Tuesday showed that all sectors except crude oil registered an increase in output. The output of core sectors had registered a 7.6% decline in July 2020 due to COVID-19 related restrictions. On a month-on-month basis, output rose 5.4% in July after growing 1.5% in June.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 21,77,12,392 with 45,19,259 deaths. India reported 3,78,181 active cases of COVID-19 infection and 4,39,020 deaths while 3,19,93,644 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India administered more than 1 crore COVID-19 vaccine doses yesterday. With the administration of 1,33,18,718 vaccine doses in the last 24 hours, India's COVID-19 vaccination coverage has surpassed the cumulative figure of 65.41 crore as per provisional reports till 7 am today.

The recovery of 33,964 patients in the last 24 hours has increased the cumulative tally of recovered patients (since the beginning of the pandemic) to 3,19,93,644. Consequently, India's recovery rate stands at 97.51%.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.91% to 14.7975. The Nifty 30 September 2021 futures were trading at 17,097.60, at a discount of 5.80 points as compared with the spot at 17,103.40.

The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 17.7 lakh contracts at the 17,000 strike price. Maximum Put OI of 27.4 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty Realty index advanced 2.49% to 396.45. The index added 6.14% in the five sessions.

Oberoi Realty (up 9.10%), Brigade Enterprises (up 5.26%), Sobha (up 5%), Hemisphere Properties (up 2.31%) and Prestige Estate Projects (up 1.98%) climbed.

Stocks in Spotlight:

Wipro lost 0.47%. The IT major and HERE Technologies, the location data and technology platform, announced that they are partnering to offer location-based services and analytics for customers globally from Energy & Utilities, Manufacturing, Transport & Logistics, Telecom and Automotive industry verticals.

Shoppers Stop gained 1.47% after the company sold its controlling stake in Crossword Bookstores to the owners of Agarwal Business House (ABH) for approximately Rs 41.62 crore. Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 01 2021. 12:33 IST
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