Market ends with modest gains

July 13,2020

Key benchmark indices ended with modest gains on Monday, led by gains in Reliance Industries and select IT stocks. As per provisional closing, the barometer S&P BSE Sensex rose 99.36 points or 0.27% at 36,693.69. The Nifty 50 index added 47.15 points or 0.44% at 10,815.20.

Intraday volatility was high. After opening with strong gains, the benchmark indices erased all gains as profit booking emerged at higher levels. After sinking in the negative zone, equity benchmarks staged a comeback in mid-afternoon trade.

In the broader market, the S&P BSE Mid-Cap index gained 0.05% while the S&P BSE Small-Cap index lost 0.15%.

The market breadth was weak. On the BSE, 1127 shares rose and 1567 shares fell. A total of 182 shares were unchanged. In the Nifty 50 index, 33 stocks advanced while 16 stocks declined. 1 stock remained unchanged.

Economic data:

The ministry of statistics and programme implementation on Friday released quick estimates of the Index of Industrial Production (IIP) which showed the index value at 88.4 in May against 53.6 in April, indicating a graded pickup in industrial activity. The index stood at 135.4 in May 2019. IIP for May 2020 declined by 34.7% but at a slower pace compared to April 2020, where the index had contracted by 57.6%.

COVID-19 Update:

India reported 3,01,609 active cases of COVID-19 infection and 23,174 deaths while 5,53,470 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 12,910,357 with 569,128 deaths so far, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty Financial Services index fell 1.55% to 10,919.20, declining for second day. The index has lost 3.42% in two sessions.

Among the index constituents, Bajaj Finance (down 2.75%), HDFC Bank (down 2.04%), HDFC (down 2.35%), ICICI Bank (down 2.04%), Shriram Transport Finance Co (down 1.53%), SBI (down 1.64%), Kotak Mahindra Bank (down 1.19%), Power Finance Corporation (down 0.78%), Bajaj Finserv (down 0.76%), Bajaj Holdings (down 0.59%), REC (down 0.53%), Mahindra & Mahindra Financial (down 0.29%) and Axis Bank (down 0.25%) declined.

ICICI Prudential Life Insurance (up 1.34%), Edelweiss Financial Services (up 1.07%), HDFC Life Insurance Company (up 1.11%), ICICI Lombard (up 0.93%), Indiabulls Housing Finance (up 0.62%) and SBI Life Insurance (up 0.31%) advanced.

Stocks in Spotlight:

Tech Mahindra (up 5.51%), HCL Technologies (up 3.56%), Hindalco Industries (up 3.54%), Wipro (up 2.66%) and JSW Steel (up 2.43%) were the top index gainers.

Power Grid Corporation of India (down 2.06%), Gail (India) (down 1.27%), Adani Ports and Special Economic Zone (down 0.76%) and Coal India (down 0.46%) were the top index losers.

Reliance Industries (RIL) gained 3.22% to Rs 1939. The scrip surged 3.64% to hit an all time high of Rs 1947 in intraday trade today. RIL said that Qualcomm Ventures has committed to invest upto Rs 730 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

Avenue Supermarts fell 4.22% to Rs 2224.25 after the company's consolidated net profit slumped 85.22% to Rs 49.56 crore on 32.94% fall in total income to Rs 3,884.57 crore in Q1 June 2020 over Q1 June 2019.

BASF India surged 10.01% to Rs 1313.10. The company's board approved the acquisition of 100% stake in BASF Performance Polyamides from BASF Nederland B.V. and BASF SE, for a consideration of an amount not exceeding Rs. 305 crore. This acquisition would strengthen the Company's position as a solution provider for key industries & would enhance market access to key growth markets. It would help the Company in expanding its existing 'Materials' segment and extend value chain through backward integration into key raw materials.

Steel Authority of India (Sail) lost 3.25% to Rs 35.75. The company's consolidated net profit surged 382.9% to Rs 2,647.52 crore on 12.5% decline in net sales to Rs 16,171.83 crore in Q4 March 2020 over Q4 March 2019.

Clariant Chemicals (India) soared 16.89% to Rs 568.45 after the company declared a special interim dividend of Rs 140 per equity share for the financial year FY 2020-21. The company has fixed 18 July 2020 as the record date for the purpose of payment of special interim dividend.

Global Markets:

Shares in Europe and Asia advanced across the board on Monday buoyed by hopes of a coronavirus vaccine, though a spike in infections around the world capped gains.

Investors remained watchful of the corporate earnings as that would reveal how companies fared during the second quarter of the fiscal year 2020-21, the period during which when nationwide lockdowns were imposed in most of the countries around the globe.

The US stock market settled session higher after recouping early losses on Friday, 10 July 2020, as a positive update from Gilead's antiviral drug to treat COVID-19 brushed off worries about a fresh wave of coronavirus infections and its impact on the economic recovery.

Gilead Sciences said on Friday that an analysis of clinical-trial data for its remdesivir drug found a 62% reduction in mortality risk among severely ill COVID-19 patients compared with standard care.

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