MARKET WRAP: Sensex settles 178 pts higher; defense stocks rally up to 12%

All that happened in the markets today

Benchmark indices climbed off the day's top, but still ended around 0.5 per cent higher on Friday amid buying in IT, auto, and FMCG counters. 

The S&P BSE Sensex ended at 36,021, up 178 points or 0.5 per cent, having risen to as high as 36,110 earlier in the day. The Nifty50 index settled above the 10,600 level at 10,607, up 56 points or 0.53 per cent. India VIX slipped 3 per cent to 25.69 levels.

On a weekly basis, Sensex gained 2.41 per cent while Nifty added 2.16 per cent. 
 

Bharti Airtel (up 4 per cent) and Bajaj Auto (up 2.5 per cent) were the top Sensex gainers. Reliance Industries gained 1.5 per cent after the company announced that Intel has invested Rs 1,894.5 crore in Jio Platforms for a 0.39 per cent stake. 

Further, shares of defence companies rallied in the trade and climbed up to 12 per cent on the BSE after the Ministry of Defence (MoD) approved the purchase of weapons and equipments worth Rs 38,900 crore. Bharat Dynamics ended 12.55 per cent higher at Rs 375.80 on the BSE while Bharat Electronics gained 9 per cent to Rs 97.25. READ MORE

Moreover, JB Chemcials rose 3 per cent during the day after it said global investment firm KKR will pick up a controlling stake of 54 per cent in the company. The stock, however, ended flat. Meanwhile, HDFC Life gained around 4.5 per cent as the company will replace Vedanta on Nifty with effect from July 31.

In the broader market, the S&P BSE MidCap index rose 0.56 per cent while the S&P BSE SmallCap index gained 0.47 per cent.

Global markets

European stocks paused on Friday after gains through the week as another record surge in US coronavirus cases dulled optimism from a brisk recovery in China’s services sector.

The pan-European STOXX 600 index was largely flat after opening marginally higher, with trading volumes thinned by a US market holiday.

In commodities, oil fell below $43 a barrel as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economic recovery.

Brent crude was down 52 cents, or 1.2 per cent, at $42.62 a barrel at the time of writing of this report, and US West Texas Intermediate (WTI) crude fell 50 cents, or 1.2 per cent, to $40.15.

(With inputs from Reuters)

4:11 PM

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

"The benchmark indices ended with a gain of 2.4 per cent, on a weekly basis, as optimism about a continued recovery in economic activity offset the concerns raised by an unabated rise in virus infections. Globally the US monthly employment report and domestically the PMI survey seemed to indicate that the worst of the lockdown economic impact is over. However, any extension or resetting of lockdown measures, due to increasing infections, could negate the gains. Progress of a vaccine trial also added to the optimism. In spite of improving economic data, markets are still largely moving on hope rather than on any real change in the ground realities. With intraday volatility increasing, investors are advised to remain cautious."

3:43 PM

SECTOR WATCH: Here's how sectoral indices on the NSE fared today

3:42 PM

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 178 points or 0.5 per cent to settle at 36,021.42 while NSE's Nifty ended at 10,607, up 56 points or 0.5 per cent.

3:29 PM

Balkrishna Industries hits 52-week high; stock rallies 49% in two months

Shares of Balkrishna Industries (BKT) hit a 52-week high of Rs 1,316, up 3 per cent on the BSE on Friday, on the expectation of strong earnings going forward. The stock surpassed its previous high of Rs 1,298 touched on February 20, 2020. It was trading higher for the sixth straight day. In the past two months, the stock of BKT has rallied 49 per cent, as compared to a 13.4 per cent rise in the S&P BSE Sensex. READ MORE

3:12 PM

NEWS ALERT :: Commercial international flights to remain suspended till July 31, says DGCA

3:05 PM

MARKET UPDATE :: S&P BSE Healthcare index holds gains in a choppy trade

2:58 PM

Telecom stocks gain

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	10.05	0.10
BHARTI AIRTEL	579.65	3.79
TATA COMM	625.00	2.27

2:54 PM

BUZZING STOCK:: Bharat Electronics surges 9%

2:46 PM

MARKET CHECK:: Omaxe continues to decline; falls another 10%

2:36 PM

Amid global crisis, Moody's rates TCS, Infosys, RIL above the sovereign

Moody's Investors Service has rated Tata Consultancy Services (TCS), Infosys and Reliance Industries above the sovereign due to their strong financials and significant global earnings.

 

Moody's said the stable outlooks on Genpact and UPL Corporation, in contrast to the negative outlook on India's Baa3, rating reflect that they can maintain their current ratings if the sovereign was downgraded to Ba1. READ MORE

2:29 PM

MARKET UPDATE:: Affle (India) freezes at 5% upper circuit

2:21 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

2:17 PM

Motorcycle segment to outperform other auto verticals amid Covid-19: Fitch

Domestic motorcycle production would gain some support from shift in demand but more benefit would accrue from the export market as the demand for motorcycles remains relatively robust in many emerging markets (EMs), the Fitch Group unit said in a statement.

 

In India, motorcycle producers have largely returned to normal operations and the segment does not depend on imported components as much as other parts in the country's automotive industry, which reduces the risk of further supply chain disruptions, it added. READ MORE

2:09 PM

Rupee Closing

Rupee ends stronger at 74.64 per US dollar vs Thursday's close 75.01/$