The benchmark indices opened at record levels on first day of August.
At 09:17 IST, the Sensex was up 129.78 points or 0.23 percent at 57,682.17, and the Nifty was up 36.60 points or 0.21 percent at 17,168.80. About 1250 shares have advanced, 439 shares declined, and 79 shares are unchanged.
Axis Bank was the top gainer in the Sensex pack, rising around 4 per cent, followed by Asian Paints, L&T, Bajaj Auto, IndusInd Bank, Nestle India and UltraTech Cement.
On the other hand, Tata Steel, HDFC, Maruti and Bajaj Finserv were among the laggards.
In the previous session, the BSE index ended 662.63 points or 1.16 per cent higher at its record close of 57,552.39, and Nifty soared 201.15 points or 1.19 per cent to an all-time closing peak of 17,132.20.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 3,881.16 crore on Tuesday, as per provisional exchange data.
According to experts, market sentiment got a boost following record growth in Gross Domestic Product (GDP) during the first quarter of the fiscal, putting India on track to achieving the world''s fastest growth this year.
The Indian economy grew by a record 20.1 per cent in the April-June quarter, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of a devastating second wave of COVID-19.
Asian shares down
Asian shares gave up some of their recent gains in cautious trading on Wednesday while the dollar inched back from three-week lows, as worries about slowing global growth in several markets returned to weigh on traders’ minds.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.40 percent. Japan’s Nikkei gained 0.89 percent while Australian shares fell 0.58 percent.
Data to Watch
10:30 AM: Markit India Manufacturing PMI for August, prior 55.3.
US stocks decline on Tuesday
A gauge of global equities posted its seventh consecutive month of gains and a record closing high on Tuesday, but stocks and the dollar mostly ended the day little changed after US and Chinese economic data suggested slower growth ahead. US stocks closed lower Tuesday, as investors looked ahead to US jobs data for August coming Friday, where they might find clues as to when the Federal Reserve may begin tapering its bond purchases which have helped to support markets during the pandemic.
For August, the S&P 500, Dow and Nasdaq rose 2.9 percent, 1.2 percent and 4 percent, respectively. The dollar slipped to its lowest level in more than three weeks against a basket of currencies
US consumer confidence fell to a six-month low in August at 113.8 (vs 125.1 in July) as soaring COVID-19 infections and rising inflation dampened the economic outlook. The Chicago purchasing managers index dropped to 66.8 in August from a previous reading of 73.4.
Aluminium hits highest point since May 2011
The price of aluminum traded on the London Metal Exchange hit its highest point since May 2011, with three-month aluminum touching $2,726.50 a metric ton before settling around $2,650.
China factory activity slips
China's factory activity slipped into contraction in August for the first time in nearly 1-1/2 years as COVID-19 containment measures, supply bottlenecks and high raw material prices weighed on output in a blow to the economy. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 49.2 last month (vs 50.2 forecast), from 50.3 in July. breaching the 50-mark that separates growth from contraction.
South Korea's factory activity grew at a slower pace in August, as output contracted for the first time in 12 months. The IHS Markit purchasing managers' index (PMI) for August stood at 51.2, falling from 53.0 in July.
Chile’s central bank said on Tuesday it would raise its benchmark interest rate to 1.5 percent from 0.75 percent, as a rapid COVID-19 vaccination program helps the world’s top copper producer resume economic activity and inflation ticks upward. The bank began to withdraw monetary stimulus last month, lifting the rate to 0.75 percent after an extended period of maintaining it at 0.5 percent, its lowest point since the outbreak of the pandemic and associated lockdowns.
GDP growth up by 20.1%
The Indian central government's fiscal deficit stood at Rs 3.21 lakh crore or 21.3 percent of the budget estimates at the end of July. India's real gross domestic product (GDP) grew by 20.1 percent in the April-June quarter of the fiscal year 2021-22, a record quarterly print on the back of a low base last year. The biggest year-on-year rise was in the construction sector at 68.3 percent. Manufacturing, which fell 36 percent in April-June last year, bounced back to grow by 49.6 percent.
The Apr-July fiscal deficit figures for India at Rs 3.21 lakh crore or 21.3 percent of the budget estimates appear much better than the previous financial year, when it soared to 103.1 percent of the estimate, mainly on account of a jump in expenditure to deal with the COVID-19 pandemic. Total receipts stood at Rs 6.83 lakh crore or 34.6 percent of corresponding BE 2021-22 up to July 2021. The total receipts were 10.4 percent of the BE of 2019-20 in the same period of the last financial year. Total expenditure was Rs 10.04 lakh crore or 28.8 percent of the corresponding BE 2021-22. The expenditure was 34.7 percent of BE of 2019-20 in the same period last fiscal.
Oil inventories fall
Oil inventories fell more than expected last week, according to data from the American Petroleum Institute.
Crude inventories showed a draw of 4.045 million barrels. Expectations had been for a draw of 2.833 million barrels last week, against an actual draw of 1.622 the week before that.
The price of Crude Oil WTI Futures, the U.S. benchmark, fell 0.98 percent, to $68.52, after the data were released. Brent Oil Futures, the international standard, was down 0.8 percent, at $71.64.The industry report also showed a draw of 1.96 million barrels of distillate stocks but an increase of 2.71 million barrels of gasoline.
MapMyIndia files DRHP documents for IPO
Indian digital mapping firm MapMyIndia filed its DRHP documents on August 31, 2021. The initial public offering (IPO) will see an offer-for-sale up to 7,547,959 equity shares by selling shareholders, according to the draft red herring prospectus (DRHP).
“The objects of the Offer are to carry out the Offer for Sale of up to 7,547,959 equity shares by the Selling
Shareholders and achieve the benefits of listing the Equity Shares on the Stock Exchanges,” the DRHP read.
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