Market breadth turns weak; Nifty below 11,150

Key indices declined further and hit the day's low in mid-afternoon trade amid steep selling pressure. The Nifty slipped below 11,150 level. At 14:25 IST, the barometer index, the S&P BSE Sensex, slipped 273.4 points or 0.72% at 37,797.52. The Nifty 50 index lost 91.55 points or 0.82% at 11,111.15.

In broader market, the S&P BSE Mid-Cap index declined 0.71% while the S&P BSE Small-Cap index fell 0.4%.

The market breadth favoured the bears. On the BSE, 974 shares rose and 1590 shares fell. A total of 176 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 352.62 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 505.62 crore in the Indian equity market on 29 July, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,039,160 with 667,218 deaths. India reported 5,28,242 active cases of COVID-19 infection and 34,968 deaths while 10,20,582 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Unlock 3.0 guidelines:

The Ministry of Home Affairs (MHA) on 29 July issued new guidelines for opening up of more activities in areas outside containment zones, as a part of Unlock 3.0, which will come into effect from 1 August. The Centre directed the states governments to allow/prohibit activities outside containment zones after proper assessment of the situation. As per the guidelines, yoga institutes and gymnasiums will be allowed to open from 5 August 2020. Schools, colleges and coaching institutions will remain closed till 31 August 2020.

Sebi Regulation:

Market regulator Sebi on Wednesday gave relaxation of one month till 15 September to listed companies for submitting their June quarter results amid coronavirus pandemic.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.825% compared with previous closing of 5.835% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 74.8225 compared with its previous closing 74.80.

In the commodities market, Brent crude for September 2020 settlement fell 28 cents to $43.47 a barrel. The contract rose 1.23% to end at $43.75 in the previous trading session.

MCX Gold futures for 5 August 2020 settlement fell 0.45% to Rs 52,950.

Buzzing Index:

The Nifty PSU Bank declined 1.42% to 1,399.15. It underperformed other sectoral indices on NSE.

Punjab National Bank (down 2.14%), Bank of Maharashtra (down 2.02%), J&K Bank (down 1.86%), SBI (down 1.83%), Bank of Baroda (down 1.27%), Indian Bank (down 1.18%) and Union Bank of India (down 1.01%) were top losers in PSU Bank segment.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) fell 1.50% to Rs 1851.10 after standalone net profit fell 4.7% to Rs 3051.52 crore in Q1 FY21 from Rs 3203.10 crore in Q1 FY20. Total income rose marginally by 0.2% on a year-on-year basis (YoY) to Rs 13,019.29 crore during the period under review. Impairment on financial instruments (expected credit loss) sugred 34.7% to Rs 1199 crore in Q1 June 2020 from Rs 890 crore in Q1 June 2019.

Chambal Fertilisers was down 3.95%. The fertilizer manufacturer's consolidated net profit surged 81.5% to Rs 298.38 crore on 12.8% jump in net sales to Rs 3,218.67 crore in Q1 June 2020 over Q1 June 2019. On a standalone basis, net profit jumped 33.1% to Rs 314.03 crore on 12.8% spurt in net sales to Rs 3,218.67 crore in Q1 June 2020 over Q1 June 2019. The firm witnessed an increase in sale quantity of both UREA and P&K fertilisers. However, revenue has not increased proportionately due to lower gas price and lower cost of P&K fertilisers. PAT increased on account of better performance of manufacturing of urea and marketing of P&K fertilisers.

JK Paper declined 4.44% to Rs 95.70 after consolidated net profit tumbled 97.8% to Rs 2.66 crore on 34.2% drop in net sales to Rs 469.24 crore in Q1 June 2020 over Q1 June 2019. Consolidated profit before tax (PBT) slumped 93.2% to Rs 12.82 crore in Q1 June 2020 as against Rs 188.07 crore in Q1 June 2019. Current tax expenses for the quarter skid 87.9% at Rs 7.69 crore as against Rs 63.56 crore paid in Q1 June 2019. The Q1 result was announced post market hours yesterday, 29 July 2020.

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