Key barometers further extended gains and hit fresh intraday high in mid-afternoon trade. At 14:23 IST, the S&P BSE Sensex, was up 215.19 points or 0.53% at 41,004.57. The Nifty 50 index was up 88.20 points or 0.74% at 12,067.85. The sentiment got a boost after India's Services PMI in January rose at quickest rates in seven years. Positive global shares also supported buying.
The S&P BSE Mid-Cap index was up 0.98% while the S&P BSE Small-Cap index added 0.52%.
The market breadth was positive. On the BSE, 1208 shares rose and 1102 shares fell. A total of 191 shares were unchanged. In Nifty 50 index, 35 stocks advanced while 14 stocks declined. 1 stock remained unchanged.
Buzzing Index:
The Nifty Auto index was up 0.13% to 8,111.65. The index has risen 2.94% in three sessions.
Tata Motors (up 7.72%), TVS Motor Company (up 2%), Ashok Leyland (up 1.9%), Mahindra & Mahindra (up 1.51%), Escorts (up 1.46%), Eicher Motors (up 0.19%) and Bajaj Auto (up 0.05%) advanced. Hero MotoCorp (down 4.15%) and Maruti Suzuki India (down 2.02%) declined.
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Force Motors rose 0.21% to Rs 1331.05 after its total production rose 10.13% to 2,620 units in January 2020 from 2,379 units in December 2019. The production is up by 52.15% year-on-year (YoY) compared with 1,722 units in January 2019.
Stocks in Spotlight:
Granules India surged 5.21% to Rs 153.55. The US Food & Drug Administration (USFDA) has approved the abbreviated new drug application (ANDA) filed by Granules Pharmaceuticals, a wholly-owned foreign subsidiary of Granules India, for Valganciclovir Hydrochloride for oral solution, 50 mg/mL. The drug is an antiviral medication used to treat cytomegalovirus infections.
BPCL surged 4.74%to Rs 501.40. Media reports suggested that Russia's Rosneft is keen to bid for acquisition of Bharat Petroleum Corp (BPCL).
Bosch slipped 2.14% to Rs 13699.25 after consolidated net profit declined 43.28% to Rs 190.24 crore in Q3 December 2019 (Q3 FY20) as against Rs 335.38 crore reported in Q3 December 2018 (Q3 FY19). Net sales fell 15.66% year-on-year (YoY) to Rs 2,536.64 crore in Q3 FY20. The Profit Before Tax (PBT) fell 70.80% to Rs 139.99 crore YoY. The result was announced during market hours today, 5 February 2020.
Oracle Financial Services Software added 0.88% to Rs 3,015.55 after consolidated net profit rose 27.28% to Rs 456.76 crore in Q3 December 2019 (Q3 FY20) as against Rs 358.85 crore reported in Q2 September 2019 (Q3 FY19). Net sales declined 0.20% year-on-year to Rs 1,160.15 crore in Q3 FY20. The result was announced post trading hours yesterday, 4 February 2020.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.510% at 14:18 IST compared with 6.504% in the previous trading session.
In the foreign exchange market, the rupee appreciated against the dollar. The partially convertible rupee was trading at 71.19, compared with its previous closing low of 71.25.
In the commodities market, Brent crude for April 2020 settlement was up 98 cents at $54.94 a barrel. The contract fell 49 cents or 0.89% to settle at $53.96 a barrel in the previous trading session.
OPEC and its allies could reportedly cut production by more than a million barrels a day. The producer group is said to likely bring forward a planned policy meeting from March to February, which would underscore the serious worries over a double-digital collapse in the price of oil this year.
MCX Gold futures for 5 February 2019 settlement rose 0.21% to Rs 40,060.
Economy:
The Reserve Bank of India (RBI)'s monetary policy committee (MPC) began its sixth bi-monthly monetary policy meeting on Tuesday (4 February). It will conclude on Thursday (6 February). The resolution of the MPC will be placed on the RBI website at 11:45 IST on 6 February 2020.
Meanwhile, the IHS Markit India Services Business Activity jumped to 55.5 in January from 53.3 in December, signalling the strongest upturn in output for seven years. The rebound largely stemmed from favourable market conditions and better underlying demand. A reading below 50 indicates contraction in activity, while a number above it signals expansion.
"The Indian service sector sprung to life at the start of 2020, defying expectations of fragility and building on to the momentum gained at the end of 2019. Strong domestic demand led to expansions in new business and output not seen for seven years. With business revenues rising, service providers continued to increase capacity to meet further strong growth in sales. This is good news for jobseekers, particularly when we consider the results from the manufacturing industry which showed the steepest upturn in employment since August 2012. One worrying development, however, was the trend for inflation. The service survey pointed to the sharpest increase in input prices in just under seven years, with companies mostly absorbing the added cost burdens themselves instead of fully passing these on to their customers. This may translate into quicker increases in selling prices in months to come, which may curb sales. Firms could also choose to restrict hiring in order to protect profit margins," said Pollyanna de Lima, Principal Economist at IHS Markit.
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