SENSEX ADDS 177 PTS; PSU BANKS STOCKS ADVANCE

The key equity indices continued to trade with minor gains in mid-morning trade. The Nifty hovered above the 24,800 level. PSU bank shares advanced after declining in the past trading session. Trading could be volatile due to weekly F&O series expiry today.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 177.55 points or 0.23% to 81,087.38. The Nifty 50 index added 52.50 points or 0.22% to 24,824.90.

The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index added 0.58% and the S&P BSE Small-Cap index gained 0.68%.

The market breadth was strong. On the BSE, 2,499 shares rose and 1,254 shares fell. A total of 137 shares were unchanged.

Economy :

The latest HSBC �flash� PMI survey, compiled by S&P Global, also highlighted a sharp upturn in new business intakes, solid job creation and upbeat expectations towards growth prospects. On the price front, there were softer increases in both input costs and selling prices.

The headline HSBC Flash India Composite Output Index � a seasonally adjusted index that measures the month-on-month change in the combined output of India`s manufacturing and service sectors � stood at 60.5 in August, little changed from 60.7 in July and pointing to a sharp rate of expansion that was above its long-run trend level (54.6).

There was a softer increase in manufacturing industry output and a fractionally stronger rise in activity across the service economy. Yet, the former led the upturn.

The HSBC Flash India Manufacturing PMI � a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases � slipped from 58.1 in July to a three-month low of 57.9 in August.

The latest reading was nevertheless above the historical average (54.0) and signaled a strong improvement in the health of the sector.

Goods producers reported the first decline in outstanding business volumes in just under a year, while service providers indicated a thirty-second consecutive monthly rise. The pace of accumulation was mild among the latter, and the weakest since February.

The HSBC Flash India Services PMI rose to 60.4 in August from 60.3 in July.

IPO Update :

The initial public offer (IPO) of Orient Technologies received 7,69,10,976 bids for shares as against 74,49,846 shares on offer, according to stock exchange data at 11:15 IST on Thursday (21 August 2024). The issue was subscribed 10.32 times.

The issue opened for bidding on Wednesday (21 August 2024) and it will close on Friday (23 August 2024). The price band of the IPO is fixed between Rs 195 to Rs 206 per share. An investor can bid for a minimum of 72 equity shares and in multiples thereof.

Buzzing Index :

The Nifty PSU bank index rose 0.90% to 7,075.35. The index shed 0.43% in the past consecutive trading sessions.

Punjab & Sind Bank (up 1.41%), Indian Overseas Bank (up 1.33%), Punjab National Bank (up 1.13%), Central Bank of India (up 0.96%), Bank of Baroda (up 0.95%), UCO Bank (up 0.82%), Union Bank of India (up 0.77%), Bank of Maharashtra (up 0.71%), State Bank of India (up 0.59%) and Indian Bank (up 0.58%) advanced.

Stocks in Spotlight :

Zomato shed 0.03%, The company said that its board approved to enter into share purchase agreement (SPA) with One97 Communication (Paytm), Wasteland Entertainment (WEPL) and Orbgen Technolgies (WEPL) to acquire their entertainment ticketing business.

The food delivery company will acquire for total consideration of Rs 2,048 crore, OTPL will be acquire by the company for Rs 1,264.6 crore and WEPL will be acquire by the company for Rs 783.8 crore.

Transformers and Rectifiers (India) (TRIL) was locked in 5% upper circuit after the company announced that it has bagged two export orders worth $16.80 million (approximatelty equal to Rs 141 crore).

Global Markets :

Asian stocks traded higher on Thursday, primarily driven by a downward revision in U.S. payrolls data. This revision raised concerns about a potential economic slowdown in the world`s largest economy.

Japan`s stock market bucked the regional trend, supported by stronger-than-expected services sector data. The au Jibun Bank flash Japan manufacturing purchasing managers` index (PMI) rose to 49.5 in August from 49.1 in July.

On Wednesday, U.S. stock markets closed higher, extending a positive streak. The S&P 500 and the Nasdaq advanced for the ninth day in the last 10 trading sessions with the former gaining 0.42% and the tech-heavy Nasdaq adding 0.57%. The Dow Jones saw modest gain of 0.14%. The minutes from the Federal Reserve`s latest meeting reinforced expectations for a rate cut in September, with a majority of FOMC members indicating that such a move would be appropriate based on current economic indicators.

But optimism over a rate cut was offset by data showing a severe downward revision in U.S. payrolls data in the year to March 2024, drumming up concerns that a slowing labor market could spur a potential recession in the world�s biggest economy. The Bureau of Labor Statistics revised down March 2024�s employment gains by 818,000 positions earlier in the session, as part of the agency�s annual benchmark review of payroll data.

Investors now eagerly await Federal Reserve Chair Jerome Powell`s speech at the Jackson Hole Symposium on Friday.

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