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Bourses continue to trade under selling pressure in late afternoon session
Oct-03-2023

Indian equity markets continued to trade under selling pressure in late afternoon session amid India's manufacturing sector growth eased in the month of September. Metal and Oil& Gas stocks were on the priority list of the sellers. Traders overlooked report that output of eight core industries rose to a 14-month high of 12.1 percent in August 2023 as against 4.2 percent a year ago, mainly due to expansion in production of coal, crude oil, and natural gas. Core sector growth in July 2023 was 8.4 percent. Besides, the finance ministry has said gross goods and services tax (GST) collection rose 10 percent to over Rs 1.62 lakh crore in September 2023. On the global front, Asian markets were trading mostly in red after comments from some Federal Reserve officials suggested that the U.S. central bank may have to raise its key interest rate higher than previously expected in the current battle against inflation. European markets were trading mostly in green as investors digested gloomy economic data from the region.

The BSE Sensex is currently trading at 65519.72, down by 308.69 points or 0.47% after trading in a range of 65344.59 and 65813.50. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.06%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.98%, Capital Goods up by 0.88%, Industrials up by 0.54% and Realty was up by 0.02%, while Oil & Gas down by 1.26%, Energy down by 1.12%, Auto down by 1.10%, Metal down by 0.89% and Power was down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.62%, Bajaj Finance up by 1.50%, Larsen & Toubro up by 1.44%, Bajaj Finserv up by 1.11% and Ultratech Cement up by 0.70%. On the flip side, Maruti Suzuki down by 2.21%, NTPC down by 1.45%, Tata Motors down by 1.44%, Sun Pharma down by 1.40% and JSW Steel down by 1.21% were the top losers.

Meanwhile, India's manufacturing sector growth eased in the month of September, however remained firmly above the no-change mark of 50.0 and its long-run average (53.9), therefore signaling a sharp rate of expansion, on the back of a sharp rise in new orders which underpinned sustained expansions in output, input purchasing and employment. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 57.5 in September 2023 from 58.6 in August 2023. 

The report stated that manufacturers' purchasing of inputs continued to grow at a robust rate that was aligned with those seen for new orders and production. This contributed to another increase in pre-production inventories. Holdings of finished goods meanwhile fell further as companies reportedly fulfilled some orders directly from warehoused items. It further said the growth of new export orders softened from August's nine-month high, but remained sharp. 

On the price front, average prices charged by Indian manufacturers rose at a solid and faster rate that outpaced its long-run average, driven by higher labour costs and demand strength. Indian manufacturers were confident that output volumes would increase over the course of the coming 12 months, with the overall level of positive sentiment improving to its highest in 2023 so far. Buoyant customer appetite, advertising, and expanded capacities all boosted optimism.

The CNX Nifty is currently trading at 19532.45, down by 105.85 points or 0.54% after trading in a range of 19479.65 and 19623.20. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.60%, Bajaj Finance up by 1.47%, Larsen & Toubro up by 1.41%, Bajaj Finserv up by 1.06% and Adani Ports &Special up by 0.82%. On the flip side, ONGC down by 3.67%, Eicher Motors down by 3.08%, Hindalco down by 2.58%, Maruti Suzuki down by 2.32% and Dr. Reddy's Lab down by 2.00% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 521.94 points or 1.67% to 31,237.94, Hang Seng declined 478.44 points or 2.76% to 17,331.22, Taiwan Weighted lost 102.97 points or 0.63% to 16,454.34 and Straits Times was down by 15.8 points or 0.49% to 3,193.06. On the flip side, Jakarta Composite was up by 13.4 points or 0.19% to 6,974.86.

European markets were trading mostly in green; UK’s FTSE 100 increased 26.58 points or 0.35% to 7,537.30 and France’s CAC was up by 0.88 points or 0.01% to 7,069.04. On the flip side, Germany’s DAX was down by 2.38 points or 0.02% to 15,244.83.
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