Domestic shares resumed uptrend on Thursday after a day's pause. Banks and metal shares rallied while FMCG shares declined. Indices witnessed a bout of volatility due to expiry of weekly index options on NSE.
The barometer S&P BSE Sensex jumped 408.68 points or 1.12% at 36,737.69. The Nifty 50 index climbed 107.70 points or 1.01% at 10,813.45.
HDFC (up 3.05%), Reliance Industries (up 1.52%) and HDFC Bank (up 1.47%) were major index movers.
IT major TCS fell 0.60% ahead of its Q1 results later today.
After opening higher at 10,755.55, the Nifty pared gains and hit a low of 10,733. The index reclaimed 10,800 mark in afternoon session. After some range bound trading, fresh buying in the final hour pushed the Nifty near the day's high of 10,836.85.
In the broader market, the BSE Mid-Cap index rose 0.07% and the BSE Small-Cap index gained 0.49%. Both these indices lagged the Sensex.
The market breadth was positive. On the BSE, 1422 shares rose and 1273 shares fell. A total of 156 shares were unchanged.
India reported 2,69,789 active cases of COVID-19 infection and 21,129 deaths while 4,76,377 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 12,043,080 with 549,508 deaths so far, according to data from Johns Hopkins University.
SEBI, CBDT data-sharing pact:
A formal Memorandum of Understanding (MoU) was signed between the Central Board of Direct Taxes (CBDT) and the Securities and Exchange Board of India (SEBI) for data exchange between the two organizations. The MoU will facilitate the sharing of data and information between SEBI and CBDT on an automatic and regular basis. In addition to regular exchange of data, SEBI and CBDT will also exchange with each other, on request and suo moto basis, any information available in their respective databases, for the purpose of carrying out their functions under various laws.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 5.772% as compared with 5.778% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.9950, compared with its close of 75.02 during the previous trading session.
In the commodities market, Brent crude for September 2020 settlement rose 7 cents at $43.36 a barrel. The contract rose 21 cents, or 0.49% to settle at $43.29 a barrel in the previous trading session.
Most shares in Europe declined and while Asian shares ended higher on Thursday as investors monitored upcoming company earnings, with hopes that global stimulus efforts will result in upbeat business outlooks.
In the Malaysian market, shares of AirAsia Group, the budget airline operator, gained over 6% on Thursday after the company reportedly said that it was in talks to raise more than 1 billion ringgit ($234.52 million) in funds, be it debt or equity, as it looked to at least halve cash expenses this year. This comes a day after the airline's auditor cast doubt on its ability to continue as a going concern after the group had liabilities that exceeded its current assets by more than $400 million at the end of 2019, media reports said. Consequently, AirAsia's shares fell as much as 17.54% in the previous session.
Meanwhile, the US stock market settled session higher after fluctuating in and out of the boundary line over the course of the trading day on Wednesday, 08 July 2020, as investors assessed economic-reopening efforts in the face of climbing coronavirus cases, causing many regions to pause or reverse their reopening plans.
Stock investors took sidelines due to nagging unease over the outlook for the global economy in the midst of rising U.S. coronavirus infections. Investor concerns that a resurgence of coronavirus cases, specifically across the Southeast and Southwest of the U.S.—known as the Sun Belt—will make a quick global recovery more difficult. Several states have had to pull back or postpone reopening efforts to control surging COVID-19 cases, threatening the speed of the economic recovery in the US. A lockdown in Australia's city of Melbourne has also raised concerns.
Buzzing Indian Index:
The Nifty FMCG index fell 0.33% to 30,671.75. It was the only losing sectoral index on the NSE.
Procter & Gamble Hygiene & Health Care (down 3.3%), Marico (down 1.63%), Jyothy Laboratories (down 0.75%), Colgate Palmolive (India) (down 0.69%), Godrej Consumer Products (down 0.47%), Hindustan Unilever (down 0.45%), Nestle India (down 0.29%), Britannia Industries (down 0.19%) and Bajaj Consumer Care (down 0.17%) declined.
Metal shares rallied. Hindalco Industries jumped 6.90% to Rs 165.70. Jindal Steel & Power climbed 4.86% to Rs 164.10. SAIL rallied 3.82% to Rs 36.70.
Tata Steel rose 3.05%. The steel major's production volume in India declined 33.5% to 2.99 million tons (MT) (provisional) in Q1 June 2020 from 4.50 MT in Q1 June 2019. The company's sales volume in India stood at 2.92 MT (provisional) in Q1FY21, declining 26.2% from 3.96 MT in Q1FY20.
Tata Steel Europe achieved production of 2.14 MT (provisional) in Q1FY21, declining 19% from 2.65 MT in Q1FY20. Sales volume stood at 1.94 MT (provisional) in Q1FY21, falling 14% from 2.26 MT in Q1FY20.
Stocks in Spotlight:
ICICI Bank rose 0.45%. The private lender on Wednesday said that it will raise up to Rs 15,000 crore via share sale.
Yes Bank rose 2.11% after the bank said it will launch its follow-on public offer (FPO) on 15 July. The FPO will close on 17 July, the lender said in a filing to the stock exchanges on Thursday (9 July). The bank has set 14 July as anchor investor bidding date. The bank filed a red herring prospectus on 7 July 2020 for the FPO to raise up to Rs 15,000 crore via a fresh issue of equity shares. The offer will include an employee reservation portion of Rs 200 crore.
Yes Bank's capital raising committee of the board will meet "on or after July 10, 2020" to consider and approve the price band and discount if any as permitted under SEBI regulations.
Meanwhile, State Bank of India's board approved a maximum investment of up to Rs 1,760 crore in Yes Bank's upcoming FPO.
State Bank of India gained 3.72%. The executive committee of State Bank of India's central board on Wednesday accorded its approval to SBI Capital Markets (SBICAP), the bank's wholly-owned investment banking subsidiary, to invest in lnvestec Capital Services lndia to form a joint venture (JV) entity.
South Indian Bank hit an upper circuit of 5% at Rs 8.37 after the bank's standalone net profit jumped 11.05% to Rs 81.65 crore on a 4.6% increase in total income to Rs 2,171.86 crore in Q1 June 2020 over Q1 June 2019. Net Interest Income (NII) rose 10% to Rs 587 crore in Q1 June 2020 as compared to Rs 536 crore in Q1 June 2019. The bank's provisions and contingencies surged 42.95% to Rs 293.08 crore in Q1 June 2020 over Q1 June 2019. The provision coverage ratio of the bank was at 58.8% as on Q1 June 2020, higher than 45.1% in Q1 June 2019.
Can Fin Homes rose 1.13%. The company said that the meeting of the board of directors of the company is scheduled on 17 July 2020 to consider and approve the proposal of raising funds by way of issue of equity shares through qualified institutions placement and/or preferential issue to promoters or rights issue and/ or any other permissible securities.
GAIL (India) rose 2.73%. Life Insurance Corporation of India (LIC)'s stake in GAIL (India) has increased to 7.019% from 5.004% earlier, after it bought 20.37 crore shares of the state-run company between 13 February 2019 and 7 July 2020.
Strides Pharma Science rose 2.35% after its Singapore-based subsidiary, Strides Pharma Global, received US FDA approval for butalbital, acetaminophen, caffeine, and codeine phosphate capsules. The drug is indicated for the relief of the symptom complex of tension (or muscle contraction) headache.
BASF India fell 1.81% after the company said it has received a tax demand notice of Rs 46.01 crore for the period 2015-2016 from Commercial Tax Department, Karnataka.
Bharat Heavy Electricals (BHEL) gained 1.94% after the company said it commissioned a 1.7 megawatts solar photovoltaic plant in Madhya Pradesh for the Indian Railways.