As long as Nifty stays above 7,985, the index is headed towards 8,100
We had mentioned in Thursday closing report that the Nifty may continue to head higher subject to it has to maintain itself above the level of 7,900. Today the index opened above Thursday’s close and moved in a narrow range throughout the session.
Sensex opened at 26,733 while Nifty opened at 7,990. Sensex moved from 26,732 to 26,900 and closed at 26,868 (up 229 points or0.86%) while Nifty moved up from 7,984 to 8,035 and closed at 8,028 (up 73 points or 0.92%). Today for the second consecutive session Sensex hit a new life time high. NSE recorded a volume of 80.72 crore shares. India VIX rose 3.54% to close at 13.5300.
Except for FMCG (0.70%), all the other indices on the NSE closed in the green. The top five gainers were Nifty Midcap 50 (2.98%), Metal (2.88%), Realty (2.70%), Infra (2.61%) and CPSE (2.57%).
Of the 50 stocks on the Nifty, 42 ended in the green. The top five gainers were Hero MotoCorp (6.46%), Jindal Steel (6.39%), Maruti (5.14%), IndusInd Bank (4.88%) and Tata Power (4.45%). The top five losers were Sun Pharma (1.56%), ITC (1.45%), HDFC (1.42%), Bhel (1.00%) and Tata Motors (0.83%).
Of the 1,627 companies on the NSE, 1,104 companies closed in the positive, 466 companies closed in the negative while 57 companies closed flat.
The Gross Domestic Product (GDP) grew at its fastet rate in two-and-half years clocking 5.7% growth in June 2014 of the fiscal year ending 31 March 2015 (FY2015). Growth over corresponding quarter last year was 4.7% according to The Central Statistical Office, which released quarterly estimates of India's GDP on Friday.
HSBC Manufacturing PMI for August 2014 was due today (1 September 2014).
Seasonally adjusted HSBC India Purchasing Managers' Index (PMI) dipped slightly from July's 17-month high of 53 to 52.4 in August. The latest PMI data highlighted a tenth consecutive monthly improvement in operating conditions in August.
Prime Minister Narendra Modi started his five-day trip to Japan on Saturday. He said Japan will invest $33.5 billion in infra projects over a period of five years to build smart cities and infra projects. It will also provide technical and financial support for bullet trains in India. India will also create a 'fast-track channel' for Indo-Japan ties.
Ashok Leyland (6.02%), hit its 52-week high today, was among the top six gainers in the ‘A’ group on the BSE. Ashok Leyland's total sales for August 2014 rose by 17% to 8,331 units over the month of August 2013. The sales of medium and heavy commercial vehicles went up by 18% to 5,830 units, while sales of light commercial vehicles rose by 14% to 2,501 units for the relevant period.
Bhushan Steel continued to be among the leading losers in the ‘A’ group on the BSE. Today again it hit a new 52-week low. GlaxoSmithKline Consumer Healthcare (1.73%), today hit its 52-week high, but ended among the top four losers in the ‘A’ group on the BSE. Maruti Suzuki (4.71%), which hit its 52-week high today, was among the top two gainers in the Sensex 30 pack. It reported 26.9% increase in its total sales in August at 110,776 units as against 87,323 units in the same month of the previous year. Except for the mid-size segment (SX4 model), the company’s sales recorded growth in all the other segments. Hero MotoCorp (5.79%) too hit its 52-week high today, and was the top gainer in the pack.
Sun Pharma (1.46%) was at the bottom among Sensex 30 stocks today. It received directions from CCI to publish the details of the proposed combination (Sun Pharma- Ranbaxy deal) within 10 working days from August 27, 2014.
US markets closed in the positive on Friday. It will remain closed today for Labour Day. Asian indices showed mixed performance, Shanghai Composite (0.83%) was the top gainer while KLSE Composite (0.51%) was the top loser.
China's official manufacturing PMI for August, reported today, was 51.1, compared with July's 51.7. Growth in China's large factory sector. It slipped to a three-month low in August as foreign and domestic demand cooled, a private survey showed on Monday. The final HSBC/Markit Purchasing Managers' Index (PMI) retreated to 50.2 in August, roughly in line with a preliminary reading of 50.3 and only a shade above the 50-point mark that demarcates an expansion in activity from a contraction.
European indices were showing mixed trading. Data released today showed that Germany's exports 0.9% in the second quarter from the first three months of the year. Imports jumped 1.6%.