Key equity indices were trading sideways with decent gains in mid-morning trade. The Nifty hovered above its crucial 11,150 level. Buying was broad based with IT and pharma stocks making the biggest moves. At 11:28 IST, the barometer index, the S&P BSE Sensex, surged 233.36 points or 0.62% at 37,896.46. The Nifty 50 index was up 70.65 points or 0.64% at 11,175.80.
All eyes are on RBI MPC's stance on policy rates. The Monetary Policy Committee (MPC) of the Reserve Bank of India is expected to keep its policy stance accommodative when it announces the decisions of the panel at 12 noon today. Investors will also see if RBI extends moratorium beyond August 2020.
In broader market, the S&P BSE Mid-Cap index added 0.46% while the S&P BSE Small-Cap index rallied 0.83%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1392 shares rose and 863 shares fell. A total of 162 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 60.18 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 425.98 crore in the Indian equity market on 5 August, provisional data showed.
COVID-19 Update:
Also Read
Total COVID-19 confirmed cases worldwide stood at 18,752,917 with 706,761 deaths. India reported 5,95,501 active cases of COVID-19 infection and 40,699 deaths while 13,28,336 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Metal index rose 0.31% to 2,270.90, rising for fifth trading session. The index has gained 6.3% in five days.
Hindustan Zinc (up 5.52%), Ratnamani Metals (up 2.19%), Steel Authority of India (up 1.36%), Coal India (up 1.28%), Vedanta (up 0.25%), NMDC (up 0.17%) were the top gainers. Among the other gainers were National Aluminium Company (up 0.14%) and Hindalco Industries (up 0.11%).
Stocks in Spotlight:
Housing Development Finance Corporation (HDFC) fell 0.62%. The company declared the opening of the qualified institutional placement (QIP) issue on Wednesday (5 August). HDFC has set the floor price at Rs 1,838.94 per share for its qualified institutional placement (QIP) issue that opened on Wednesday. On 30 July, the board of HDFC had approved raising funds by way of issuance of equity shares and secured redeemable non-convertible debentures simultaneously with warrants aggregating up to a cumulative amount of Rs 14,000 crore on a QIP basis.
National Fertilizers jumped 3.15% after the company reported record total fertilizer sales of 18.79 lakh metric tonne (MT) in April- July 2020 period, showing a growth of more than 20% than the previous best of 15.64 LMT recorded during the same period last year. Out of this, the sale of the company's core product Urea registered a sale of 15.87 Lakh MT higher by 17% than CPLY.
InterGlobe Aviation fell 1.09%. The airline company said that the meeting of the board of directors of the company is scheduled on 10 August 2020 to consider and approve raising of funds through equity, debt and/or any other permitted means. The announcement was made after market hours yesterday, 5 August 2020.
Global Markets:
Asian markets were mixed as investors continued to watch tensions between the US and China.
On Wednesday, U.S. Secretary of State Mike Pompeo said that President Donald Trump's administration wants to ban untrusted Chinese apps such as TikTok and WeChat from U.S. app stores. That development followed tensions between Washington and Beijing heating up in recent weeks.
In US, Wall Street's main indexes rose on August 5 after Disney delivered a surprise quarterly profit, with sentiment aided by signs that a coronavirus fiscal relief package was imminent.
US services industry activity gained momentum in July as new orders jumped to a record high, but hiring declined, supporting views that the labor market recovery was faltering amid a resurgence in new COVID-19 infections across the country. The Institute for Supply Management (ISM) said on August 5 its non-manufacturing activity index increased to a reading of 58.1 last month, the highest since March 2019, from 57.1 in June. The index slumped to 41.8 in April, which was the lowest reading since March 2009.
In economic news, the final monthly reading of the closely-watched ISM service sector purchasing managers index jumped to a reading of 58.1 in July, signalling stronger economic growth.
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