Key benchmarks extended gains and hit fresh intraday high in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 211.84 points or 0.69% at 30,821.14. The Nifty 50 index was up 63.20 points or 0.70% at 9,092.25.
In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index were almost flat.
The market breadth was positive. On the BSE, 962 shares rose and 895 shares fell. A total of 119 shares were unchanged. In the Nifty 50 index, 32 stocks advanced while 17 shares declined.
Buzzing Index:
The Nifty Metal index added 0.96% to 1,773.20, extending gains for second day. The index has added 3.67% in two sessions as China's trade data and macro-economic indicators for April indicate that economic activity after the Covid-19 lockdown is resuming.
Steel Authority of India (up 3%), Hindalco Industries (up 2.98%), Hindustan Copper (up 2.64%), National Aluminium Company (up 1.99%), JSW Steel (up 1.48%) and Tata Steel (up 0.57%) advanced.
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NMDC (down 1.78%), Jindal Steel & Power (down 0.41%) and Hindustan Zinc (down 0.3%) and Vedanta (down 0.17%) declined.
Earnings Impact:
Deepak Nitrite rose 0.72% to Rs 504.75. The chemical maker's standalone net profit soared 105.6% to Rs 116.26 crore on an 8.1% rise in net sales to Rs 525.24 crore in Q4 March 2020 over Q4 March 2019. PBT surged 83.5% to Rs 159.71 crore in Q4 March 2020 over Q4 March 2019. Total tax expenses rose 42.6% to Rs 43.45 crore in Q4 March 2020. EBITDA margin improved to 35.2% in Q4 March 2020 from 22.7% reported in Q4 March 2019. Performance was led by realisation gains in both fine & speciality chemicals (FSC) and performance products (PP) segment.
Torrent Pharmaceuticals tumbled 4.82% to Rs 2456.90. The company reported consolidated net profit of Rs 314 crore in Q4 March 2020 as against net loss of Rs 152 crore in Q4 March 2019. Net sales rose 4.9% to Rs 1,912 crore in Q4 March 2020 over Q4 March 2019. The research & development (R&D) spend gained 7% to Rs 118 crore in Q4 March 2020 as against Rs 139 crore in Q4 March 2019. Pre-tax profit stood at Rs 293 crore in Q4 March 2020 as against pre-tax loss of Rs 150 crore in Q4 March 2019. Current tax expenses fell 22.2% to Rs 49 crore in Q4 March 2020 compared with Rs 63 crore in Q4 March 2019.
Global Markets:
Asian shares slipped on Wednesday as investor concerns about rising tensions between the United States and China over Hong Kong tempered optimism about a re-opening of the world economy. The White House reportedly said a proposed national security law might jeopardize the Chinese territory's status as a global financial center. The law being considered for Hong Kong by the Chinese legislature has prompted warnings it might erode the independence of courts and other elements that help to make the former British colony a business center.
As per reports, the US was considering sanctions on Chinese firms and officials over the situation in Hong Kong. US President Donald Trump will reportedly make an announcement about the administration's response to China's actions by the end of this week.
The US equity market finished session sharply higher on Tuesday, 26 May 2020, as investors were emboldened by fresh coronavirus vaccine news from Novavax and Merck and signs that global economies are crawling back from the pandemic shutdown. The S&P 500 exceeded its 200-day moving average (DMA) for the first time since 5 March, but failed to close above the key level. Rising above 200 DMA could signal a change in long-term trend from bearish to bullish.
Risk sentiments also improved on hopes that the worst of the economic impact of the shutdown is in the past after data showing U.S. consumer confidence nudged up in May. Consumer confidence edged higher in May after two months of steep declines as businesses shuttered by the coronavirus pandemic gradually reopened, but the measure still hovers near six-year lows. The closely watched index of Americans' outlook rose to 86.6 from 85.7 in April, the Conference Board said Tuesday, driven by a pickup in expectations for the next six months. That comes after a record plunge last month.
Shares of Novavax Inc closed 4.5% higher after the US biotech group has announced the launch of human trials for its COVID-19 vaccine, expecting initial results in July.
Shares of Merck rose 1.2% after pharma giant also announced it is jumping into the coronavirus space with two deals involving two separate vaccine candidates for COVID-19 and a deal linked to a possible treatment for the disease. Merck on Tuesday said that it plans to work with nonprofit research organizations to develop a vaccine.
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