MARKET WRAP: Sensex trims losses, ends 12 pts down; Nifty closes at 11,194

All that happened in the markets today

The Indian stock market ended Friday's volatile session on a flat note with negative bias led by selling in financial, auto, and metal counters. However, Reliance Industries (RIL) and IT stocks gave much-needed support. 

The S&P BSE Sensex today ended at 38,129, down 12 points or 0.03 per cent while NSE's Nifty ended 21 points or 0.19 per cent lower at 11,194 points. 

Of 30 stocks on Sensex, 23 declined and the rest 7 advanced. HCL Tech (up over 4 per cent) ended as the top gainer on the index, followed by RIL (up 4 per cent) and Tech Mahindra (up over 3 per cent). On the flip side, Axis Bank (down over 3 per cent) emerged as the biggest loser. 

During the day, the index hit a high and low of 38,235.73 and 37,748.41, respectively.  

On a weekly basis, Sensex rallied 3 per cent while Nifty gained 2.68 per cent. 

Among individual stocks, Reliance Industries continued to soar and hit a new high of Rs 2,162.80 on the BSE. The market capitalisation of the company breached Rs 14 trillion today. The stock ended at Rs 2,146, up over 4 per cent on the BSE. READ MORE

Shares of Mphasis jumped over 14 per cent to Rs 1,118.70 on the BSE after the company’s April-June quarter (Q1FY21) earnings came in-line with Street estimate. Besides, signing of new deal worth $216 million deal in July 2020, in addition to the Q1 TCV declared wins worth $259 million, boosted sentiment. READ MORE

In the broader market, the S&P BSE MidCap index slipped 0.6 per cent to 13,702.55 while the S&P BSE SmallCap ended at 12,967, down 0.23 per cent. 

On the sectoral front, barring Nifty IT, all the other indices ended in the red. Nifty Bank declined 422 points or 1.83 per cent to 22,662 while Nifty Metal slipped over 2 per cent to 2,087.50 levels. Nifty IT, on the other hand, gained 1.4 per cent to 17,286 levels. 

Global markets

Global shares skidded further from five-month peaks on Friday as a bounce-back in European business activity did little to ease the jitters surrounding Sino-US tensions, while gold approached a record high.

European shares were on course for their worst day in a month, with the pan-region Euro Stoxx 50 down 1.9 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.9 per cent. Tokyo was closed for a holiday, but Nikkei futures were trading 1 per cent lower.

E-Mini futures for the S&P 500 edged down 0.8 per cent.

Oil prices edged higher, supported by a weaker dollar, though tensions between the United States and China weighed.

(With inputs from Reuters)

4:07 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"In spite of negative global cues and profit booking at the beginning of trade, Indian indices overcame a negative start to finally end the day flat with a negative bias. Reliance Industries stock performance boosted the benchmark indices and helped limit further losses, while financials led the losses. The record virus infections in India have also unsettled investors, with its related delay in business and earnings recovery. Global markets were also affected on account of rising US-China tensions. Markets head into the weekend with this uncertainty in mind, after a quid pro quo from the Chinese government. Any further developments in this front will impact trade for next week".

3:44 PM

SECTOR WATCH:: Nifty IT ends in the red

3:43 PM

MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex

3:41 PM

CLOSING BELL

The S&P BSE Sensex ended flat at 38,129, down 12 points while NSE's Nifty ended at 11,194, down 21 points or 0.19 per cent.

3:25 PM

RIL surges 5% to hit fresh record high; market-cap crosses Rs 14 trillion

Shares of Reliance Industries hit a fresh record high of Rs 2,163, up 5 per cent on the National Stock Exchange (NSE) on Friday, after media reports said Amazon.com Inc is in talks to buy a 9.9 per cent stake in the company’s retail arm. With today’s gain, the stock has rallied nearly 150 per cent in the past three months from Rs 867, touched on March 23, 2020. READ MORE 

3:13 PM

BROKERAGE VIEW:: Centrum Broking on HDFC AMC

HDFC AMC Q1FY21 earnings were largely in-line. Revenues at Rs 4.1bn missed estimates, led by a sharp decline of equity share in the overall AUM. Though higher other Income and lower tax protected earnings with PAT being Rs 3.02bn. Focus is on diversifying fund management startegies to reduce the performance volatility of equity schemes across cycles and controlling opex in the near term. To further this, HDFC AMC hired 2-3 fund managers during the quarter. On the opex front, the company targets cost savings of Rs 350-400mn in FY21E. We like HDFC AMC given its opex efficiency, pan-India distribution network and continued market leadership. We maintain our P/E multiple at 36.0x to arrive at a TP of Rs 2,974. BUY.

3:02 PM

We are all charged up for the next 25 years: Bharti Airtel chairman

One thing that everybody acknowledges today is the stellar contribution made by the telecom industry to keep India running during Covid-19 lockdown and after.

 

A nation of one billion connected 24x7 by seamless networks at the most affordable tariffs globally is no mean feat. And I take this opportunity to commend everyone across the telecom ecosystem – the operators and their partners, the government and the regulator for having made this possible.  READ MORE

Sunil Bharti Mittal, Chairman, Bharti Enterprises

2:57 PM

Sector Alert :: Metal stocks decline on weak global cues

2:52 PM

SECTOR WATCH:: Nifty IT index's the only sectoral index trading in the green

2:46 PM

US, China clash to impair global trade vital for India's reopening: Rajan

"Certainly as we get closer to the US election, the conflict between the US and China is going to increase and that impairs global trade, whichis going to be extremely important going forward, especially for emerging markets like India, Brazil, Mexico, which are going to be significantly impaired by the virus and need some source of demand to pull them out as they start opening up again," he said. READ MORE

2:39 PM

Oil edges higher on weaker dollar, but demand threats from US China tension

Oil prices edged higher on Friday on the back of a weaker US dollar, although demand concerns stemming from rising coronavirus cases and escalating US-China tensions kept a cap on prices. The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually ups buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. READ MORE

2:33 PM

UPDATE :: S&P BSE Sensex gains 90 points

2:25 PM

Result Tomorrow | ICICI Bank Q1 PAT may jump 60% YoY on stake sale in insurance arms

Darpin Shah, analyst tracking the sector at HDFC Securities, meanwhile, pegs the net profit marginally lower at Rs 2,900 crore, up 52 per cent YoY.

 

“We have factored in higher provisions (up 71 per cent YoY, albeit lower QoQ), as ICICI Bank proactively utilises the gains from stake sale in subsidiaries. Consequently, we expect the PAT to register a sharp 52 per cent YoY growth,” he wrote in a results preview note. READ MORE

2:17 PM

UPDATE :: Market off lows

2:16 PM

Stocks that hit 52-week high in an otherwise weak market today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
DEEPAK NITRITE	578.70	583.80	5.00
DIXON TECHNOLOG.	7672.45	7809.75	0.24
ESSEL PROPACK	204.35	216.60	1.21
GRANULES INDIA	292.85	294.25	4.48
HCL TECHNOLOGIES	666.30	667.85	2.09