The broader market advanced for second trading session after the Sebi on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index was up 0.72% while the S&P BSE Small-Cap index jumped 1.13%.
Buyers outpaced sellers. On the BSE, 1393 shares rose and 1032 shares fell. A total of 180 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 298.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 120.35 crore in the Indian equity market on 14 September, provisional data showed.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.68% to 20.8325. The Nifty September 2020 futures were trading at 11,495.30, at a premium of 2.6 points compared with the spot at 11,492.70.
The Nifty option chain for 17 September 2020 expiry showed maximum Call OI of 33.64 lakh contracts at the 11,500 strike price. Maximum Put OI of 28.40 lakh contracts was seen at 11,400 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 22.73 lakh contracts at the 12,000 strike price. Maximum Put OI of 26.98 lakh contracts was seen at 11,000 strike price.
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COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 29,190,588 with 9,27,245 deaths. India reported 9,90,061 active cases of COVID-19 infection and 80,776 deaths while 38,59,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's retail inflation which is measured by the Consumer Price Index (CPI) eased to 6.69% in the month of August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The CPI for the month of July was revised to 6.73% from 6.93%.
The Scheduled commercial banks (SCBs) credit growth was steady on sequential basis to 5.5% YoY to Rs 1,02,11,730 crore as on 28 August 2020, compared with 5.5% growth a fortnight ago. The credit growth has decelerated from 10.2% at end July 2019. Aggregate deposits growth of the scheduled banks increased 10.9% YoY at Rs 1,41,76,765 crore as on 28 August 2020, compared with 11.0% growth a fortnight ago and 9.7% rise a year ago.
RBI Mandates Automated Recognition of NPAs:
The Reserve Bank of India (RBI) on Monday mandated the automation of bad-loan recognition by banks by 30 June 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly. In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements. The system-based asset classification shall be an ongoing exercise for both downgradation and upgradation of accounts.
Buzzing Index:
The Nifty Bank index was up 0.49% to 22,210.30. The index bounced back after sliding as much as 0.18% in morning trade. The index tumbled 1.68% in the previous session.
ICICI Bank (up 1.46%), IndusInd Bank (up 1.04%), HDFC Bank (up 0.63%), IDFC First Bank (up 0.32%) and Axis Bank (up 0.31%) advanced.
Earnings Impact:
Raymond slumped 0.97% after the company reported a consolidated net loss of Rs 242.15 crore in the June quarter as compared to a net loss of Rs 14.85 crore recorded in the same period last year. Net sales slumped 88.6% year-on-year (YoY) to Rs 163.16 crore during the quarter. The company has undertaken cost rationalization & various cost control measures relating to sales & marketing, manpower, rentals and others. This has resulted in operating cost at Rs 275 crore, lower by 50% on a sequential basis from Rs 551 crore in Q4FY20 and lower by 44% on a YoY basis from Rs 494 crore in Q1FY20.
JB Chemicals & Pharmaceuticals soared 11.13% after the company's consolidated net profit surged 92.4% to Rs 119.51 crore on 17.1% increase in net sales to Rs 522.29 crore in Q1 June 2020 over Q1 June 2019. The business performance during the quarter improved due to a 18% growth in revenue coupled with an increase in other income (primarily from current investments) and a better product mix with savings in some heads of expenditure on account of the current situation due to the COVID-19 pandemic.
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