Don’t miss the latest developments in business and finance.

Broader market trades lower; telcos in action

Image
Capital Market
Last Updated : Sep 01 2020 | 12:50 PM IST
Key barometer indices traded with modest gains in early afternoon trade. At 12:27 IST, the barometer index, the S&P BSE Sensex, added 236.81 points or 0.61% at 38,865.13. The Nifty 50 index gained 62 points or 0.55% at 11,450.10. Rising COVID-19 cases and disappointing domestic economic data capped gains.

In broader market, the S&P BSE Mid-Cap index was down 0.21% while the S&P BSE Small-Cap index was slipped 0.66%.

The market breadth was weak. On the BSE, 714 shares rose and 1688 shares fell. A total of 134 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.03% to 22.37. The Nifty September 2020 futures were trading at 11,493.50, at a premium of 31.3 points compared with the spot at 11,462.20.

The Nifty option chain for 3 September 2020 expiry showed maximum Call OI of 31.73 lakh contracts at the 12,000 strike price. Maximum Put OI of 24.59 lakh contracts was seen at 11,400 strike price.

The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 20.09 lakh contracts at the 12,000 strike price. Maximum Put OI of 27.88 lakh contracts was seen at 11,000 strike price.

More From This Section

Buzzing Segment:

Shares of telecom companies turned volatile after the Supreme Court on Tuesday (1 September) allowed telecom operators 10 years to pay up dues related to adjusted gross revenue (AGR).

Vodafone Idea slumped 20% and Tata Teleservices (Maharashtra) shed 0.85% while Bharti Airtel jumped 4.69%.

Reliance Industries, which controls Reliance Jio Infocomm, was up 0.88% to Rs 2096.80.

The BSE Telecom index was up 2.09% at 1,253.04.

A three-judge apex court bench, headed by Justice Arun Mishra, directed telecom operators to make 10% upfront payment of their AGR dues, with the rest of the payments to begin from 1 April 2021.

In October 2019, the Supreme Court delivered the verdict on the AGR issue for calculating government dues of telecom companies as licence fee and spectrum usage charges.

Later in March 2020, the department of telecommunications (DoT) appealed to the apex court seeking 20 years for paying AGR dues. However, SC expressed reservations about granting 20-year time, voicing doubt about recovery of dues.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 25,405,845 with 849,389 deaths. India reported 7,85,996 active cases of COVID-19 infection and 65,288 deaths while 28,39,882 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index stood at 52 in August 2020 from 46.0 in July signalling an improvement in operating conditions across the manufacturing sector following four consecutive months of contraction.

Commenting on the latest survey results, Shreeya Patel, Economist at IHS Markit said,"August data highlighted positive developments in the health of the Indian manufacturing sector, signalling moves towards a recovery from the second quarter downturn. The pick-up in demand from domestic markets gave rise to upturns in production and input buying. However, not all was positive in August, delivery times lengthened to another marked rate amid ongoing COVID-19 disruption. Meanwhile, employment continued to fall despite signs of capacity pressures, as firms struggled to find suitable workers. "The rate of input price inflation was solid, following four monthly declines in cost burdens. Firms, however, continued in their efforts to drive sales amid greater competitive pressure and reduced their selling prices further."

India's GDP contracted 23.9% in Q1 June 2020 compared to the same period last year, showed official data released by the National Statistics Office (NSO) on Monday. This was mainly on account of limited economic activity in the country during the quarter amid lockdowns to control the spread of the coronavirus pandemic. The economy expanded 3.1% year-on-year in the quarter ended March 2020.

India's fiscal deficit stood at Rs 8.21 lakh crore, or 103.1% of the budgeted target for the current fiscal year upto the end of July 2020 exceeding its target in first four months of FY21. The Government of India has received Rs. 2,32,860 crore (10.4% of corresponding BE 2020-21 of Total Receipts) upto July, 2020 comprising Rs. 2,02,788 crore Tax Revenue (Net to Centre), Rs 24,614 crore of Non Tax Revenue and Rs 5,458 crore of Non Debt Capital Receipts.

Powered by Capital Market - Live News

Also Read

First Published: Sep 01 2020 | 12:25 PM IST

Next Story