The equity barometers neared the day's high in afternoon trade amid significant bouts of volatility. At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 115.12 or 0.32% at 36,602.40. The Nifty 50 index added 16.55 points or 0.15% at 10,780.20.
In the broader market, the S&P BSE Mid-Cap index rose 0.38% while the S&P BSE Small-Cap index gained 0.49%.
The market breadth was negative. On the BSE, 1217 shares rose and 1365 shares fell. A total of 141 shares were unchanged. In Nifty 50 index the breadth was negative with 22 stocks advancing and 28 stocks declining.
Foreign portfolio investors (FPIs) bought shares worth Rs 348.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 263.47 crore in the Indian equity market on 6 July, provisional data showed.
India reported 2,59,557 active cases of COVID-19 infection and 20,160 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,622,741 with 538,079 deaths so far, according to data from Johns Hopkins University.
The World Bank and the Government of India signed the $750 million agreement for the MSME Emergency Response Programme to support increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis. The World Bank's MSME Emergency Response Programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.
The Nifty Bank index rose 0.81% to 22,379.30 as it extended gains for second day. The index has added 2.41% in two sessions.
In the derivatives segment, the Nifty Bank July 2020 futures were trading at 22,351.90, at a discount of 27.4 points compared with the spot at 22,379.30.
Among the index constituents, Bandhan Bank (up 3.39%), ICICI Bank (up 3%), IndusInd Bank (up 2.64%), Axis Bank (up 1.68%), RBL Bank (up 1.66%) and IDFC First Bank (up 1.10%) advanced.
Bank of Baroda (down 2.33%), Punjab National Bank (down 1.75%), SBI (down 1.17%), Federal Bank (down 0.84%), Kotak Mahindra Bank (down 0.78%) and HDFC Bank (down 0.29%) declined.
Stocks in Spotlight:
Bajaj Finserv (up 2.79%), Zee Entertainment Enterprises (up 2.57%), Asian Paints (up 1.74%), Eicher Motors (up 1.39%) and Maruti Suzuki India (up 1.36%) were the top index gainers.
Adani Ports and Special Economic Zone (down 3.70%), Power Grid Corporation of India (down 2.92%), Mahindra & Mahindra (down 2.72%), Grasim Industries (down 2.68%) and BPCL (down 2.60%) were the top index losers.
Infosys rose 3.10% to Rs 787.45. A foreign brokerage has reportedly given a buy call on the stock with target being raised to Rs 895 per share. The brokerage said the firm is likely to benefit from acceleration of information systems' digitalisation. There's an increasing need for work moving offshore to India and the company's large Indian delivery base would be a key competitive advantage, the brokerage reportedly added.
Bajaj Finance jumped 5.09% to Rs 3,267.25 after the company's asset under management (AUM) under moratorium reduced to about 15.5% as of 30 June from 27% as of end April.
The company's customer franchise stood at 43 million as of 30 June 2020, up by 16.5% or 0.5 million from 36.9 million as on 30 June 2019. New loans booked during Q1 FY21 were down by 76.7% to 1.7 million as compared to 7.3 million in Q1 FY20. Assets under management (AUM) increased by 7.8% to approximately Rs 1.38 lakh crore as of 30 June 2020 as compared to approximately Rs 1.28 lakh crore as of 30 June 2019.
Its deposit book grew 32.6% to Rs 20,000 crore in Q1 June 2020 from Rs 15,084 crore in Q1 June 2020. The company said that it may consider additional accelerated provisioning for COVID-19 in Q1 FY21 as well to further strengthen its balance sheet.
Tata Consultancy Services was down 0.40% to Rs 2254, as it pared early gains. On Monday (6 July), JP Morgan Funds purchased 11.23 lakh equity shares, or 0.03% stake, of TCS at an average price of Rs 2,199 per share via block deal on the BSE.
The IT major's board will meet on 9 July 2020 to approve the financial results for June quarter. The board will also consider declaration of interim dividend to equity shareholders.
European shares fell while Asian stocks traded mixed on Tuesday as concerns over rising COVID-19 cases in the US dimmed hopes of a faster economic recovery.
German industrial production rose to 7.8% in May, following a 17.5% contraction in April.
In US, stocks finished sharply higher Monday, with the Nasdaq scoring a record close, as a rebound in U.S. services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States. The gains came despite a record surge in new COVID-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.
Amazon.com rose 5.8% to close at $3,057 a share, topping the $3,000 level for the first time in its history and clinching a $1.5 trillion valuation.
The Institute for Supply Management's (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, a report showed.