The key equity indices pared early gains in mid-morning trade. The Nifty was trading below the 15,650 mark. Media stocks advanced for third day. Asian markets were trading higher.
At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 200.53 points or 0.39% to 52,050.01. The Nifty 50 index added 65.15 points or 0.42% to 15,641.35.
In broader market, the S&P BSE Mid-Cap index gained 0.79% while the S&P BSE Small-Cap index rose 1.15%.
The market breadth was strong. On the BSE, 2094 shares rose and 833 shares fell. A total of 153 shares were unchanged.
Services PMI:
IHS Markit India Services PMI stood at 46.4 in May, down from 54.0 in April. The figure contracted for the first time in eight months. The latest reading pointed to a solid rate of reduction that was nevertheless slower than those seen in the aftermath of the COVID-19 outbreak. According to panel members, the fall in output stemmed from the escalation of the pandemic and the reintroduction of restrictions.
Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: While PMI data released at the start of the month showed that the manufacturing industry managed to keep its head above water in May, the service sector struggled as the pandemic escalated."The intensification of the COVID-19 crisis and associated restrictions suppressed domestic and international demand for Indian services. Total sales decreased for the first time in eight months, while the fall in external orders was the most pronounced since last November."Amid efforts to keep a lid on expenses given the deterioration in new business, services companies reduced payroll numbers to the greatest extent in seven months. Concerns towards the outlook, evidenced by a dip in sentiment, could prevent job creation in the near-term.Anecdotal evidence indicated that a fall in staff expenses indeed helped curb the rate of input price inflation. Yet, the overall rise in cost burdens was historically sharp as prices for a wide range of inputs and fuel continued to surge. Only a small proportion of firms shared additional cost burdens with their clients, resulting in only a marginal increase in services fees.
Economy:
India's merchandise exports in the last month recorded a steep rise of over 67% compared to the corresponding period last year. The Union Commerce & Industry Ministry has informed that in the month of May this year the total merchandise export from the country stood at over $32 billion.
It informed that the figure is nearly 8% higher even when compared to the pre COVID statistics for the month of May in 2019. Collectively the merchandise export for the month of April and May this year is more than 12.5% as compared to the corresponding period in the year 2019.
The Commerce Ministry also informed that the merchandise imports in the first two months of the current financial year has been recorded to be 5.41% less than that of the corresponding period in 2019. However, due to the value of the imports pegged at around $38 billion, the country has registered a trade deficit of over $6 billion in the previous month.
Buzzing Index:
The Nifty Media index rose 1.71% to 1,800.85, extending gains for third day. The index has added 2.24% in three sessions.
Jagran Prakashan (up 2.58%), T.V. Today Network (up 2.45%), PVR (up 2.11%), Zee Entertainment (up 1.97%), Inox Leisure (up 1.89%), Sun TV Network (up 1.84%), Dish TV India (up 1.65%) and Hathway Cable (up 0.78%) advanced.
Global Markets:
Asian stocks are trading higher on Thursday. A private survey released Thursday showed slowing Chinese services activity growth in May. China's Caixin/Markit services Purchasing Managers' Index for May came in at 55.1 on Thursday, lower than the reading of 56.3 in April. Still, that was well above the 50 level that separates expansion from contraction.
US stocks rose slightly on Wednesday with the S&P 500 hovering near an all-time high.
The U.S. Federal Reserve published its "Beige Book" report, which pointed to labour shortages and inflation pressures.
Philadelphia Fed President Patrick Harker said it's appropriate to slowly, carefully move back on bond purchases at the appropriate time.
Investors are also digesting President Joe Biden's plans to amend a U.S. ban on investments in companies linked to China's military, and looking ahead to Friday's U.S. jobs report for the latest insight into the rebound from the pandemic and inflation risks.
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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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