Market nudges higher amid volatility

·3-min read

Volatility struck bourses in early trade as the key indices turned positive after opening lower. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 165.15 points or 0.41% at 40,596.75. The Nifty 50 index was up 47.15 points or 0.4% at 11,920.20.

The S&P BSE Mid-Cap index was up 0.18%. The S&P BSE Small-Cap index was up 0.24%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 875 shares rose and 663 shares fell. A total of 68 shares were unchanged.

Stocks in news:

Britannia Industries lost 4.26%. The company posted a 23% rise in consolidated net profit to Rs 498.13 crore in Q2 September 2020 from Rs 404.22 crore reported in Q2 September 2019. Consolidated revenue from operations stood at Rs 3,419.11 crore in Q2 September 2020, rising 12% from Rs 3,048.84 recorded in Q2 September 2019.

Wipro rose 1.44%. Wipro announced that it has won an Application Management (AMS) and Services Integration & Management (SIAM) contract from Fortum, one of the leading clean-energy companies headquartered in Espoo, Finland.

ACC gained 2.85%. The company's consolidated net profit rose 20.26% to Rs 363.85 crore on 0.26% increase in net sales to Rs 3537.31 crore in Q3 September 2020 over Q3 September 2019.

HDFC Life Insurance Company rose 0.68%. The company reported 6.1% rise in consolidated net profit to Rs 327.83 crore on 89.6% increase in total income to Rs 16,426.03 crore in Q2 September 2020 over Q2 September 2019.

Reliance Industries (RIL) rose 0.63%. RIL's subsidiary Reliance Retail Ventures received the subscription amount of Rs 1,837.50 crore from TPG Asia VII SF Pte. Ltd. (TPG) and allotted 26,932,942 equity shares to TPG.

MRPL rose 1.92%. MRPL's board has approved acquisition of 1,24,66,53,746 equity shares of Rs. 10 each of ONGC Mangalore Petrochemicals (OMPL), a subsidiary of MRPL from ONGC (an existing shareholder of OMPL). MRPL was holding 51.0017% of the paid up equity of OMPL, which has been increased to 99.9998% pursuant to the acquisition of equity shares from ONGC.

Bank of Baroda dropped 2.06%. A meeting of the Capital Raising Committee (CRC) of whole time Directors of the Bank is scheduled to be held on 23 October 2020 to consider raising of capital funds through issue of capital debt instruments.

Global Markets:

Overseas, Asian stocks are trading lower on Tuesday as a deadline for U.S. lawmakers to pass an economic stimulus bill approached and record daily coronavirus infections in Europe ignited concerns about more severe lockdowns.

China's latest one-year and five-year loan prime rates (LPRs) were left unchanged on Tuesday. At present, the one-year LPR sits at 3.85% while the five-year rate is at 4.65%.

In US, Wall Street's main indexes closed lower on Monday as Washington lawmakers still appeared to struggle to reach an agreement on coronavirus stimulus ahead of a Tuesday deadline that would make a relief package possible ahead of the November 3 elections.

Back home, the benchmarks indices ended with strong gains on Monday, led by the rally in bank stocks. The barometer index, the S&P BSE Sensex, jumped 448.62 points or 1.12% to 40,431.60. The Nifty 50 index added 110.60 points or 0.94% to 11,873.05.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,656.78 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,621.73 crore in the Indian equity market on 19 October, provisional data showed.