Indian equity markets started the day on a negative note but quickly bounced backed into positive territory. The strengthening of the Indian rupee coupled with value-buying by investors propelled the Indian equity markets in the afternoon. All the sectoral indices barring Realty ended the day in green. Auto, metal and Pharma sectors were the leading pack of gainers. While the BSE-Sensex closed higher by 332 points, the NSE-Nifty closed higher by 106 points. BSE Mid Cap and the BSE Small Cap closed on a positive note.
As regards global markets, Asian indices closed in the green. European indices have opened in the red. The rupee was trading at Rs 67.1 to the dollar at the time of writing.
Indian services activity shrank in August at its quickest pace since the depths of the global financial crisis as new business dried up. The HSBC Services Purchasing Managers' Index (PMI) slipped to 47.6 in August, the weakest since April 2009, from 47.9 in July. A number below 50 denotes contraction. The new business sub-index fell to 46.6 in August from 47.8 in July, the lowest in over four years and the second month running that demand has declined. Firms were also less optimistic about the future. The business optimism sub-index posted its biggest one-month fall in nearly a year.
According to a leading financial daily, Mahindra and Mahindra is planning to invest Rs 100 bn in the next three years on capex and launching new products. The company is scouting for locations, including options outside its Chakan plant in Maharashtra, to set up its new plant to manufacture new products. Out of Rs 100 bn, 75 bn are for capex on automotive and farm equipment and another Rs 25 bn investment will be on group companies. As part of overall capex, the company is developing two-three new platforms for brand new products which will hit the market around FY16. These new products will be rolled out from completely new plant. Location for which will be decided within this fiscal. The company is also working on six new engines out of which three will be from Mahindra and Mahindra and three from Sangyong. The company is also working on smaller engines with higher power.