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Market drifts higher in early trade

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Last Updated : Jul 01 2020 | 10:04 AM IST

Key indices are trading higher in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 168.48 points or 0.48% at 35,084.28. The Nifty 50 index was up 48.35 points or 0.47% at 10,350.45.

The S&P BSE Mid-Cap index was off 0.09%. The S&P BSE Small-Cap index was up 0.15%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 998 shares rose and 819 shares fell. A total of 67 shares were unchanged.

Stocks in news:

ONGC fell 1.04%. ONGC reported consolidated net loss of Rs 6,189.44 crore in Q4 March 2020 as against net profit of Rs 4,751.36 crore in Q4 March 2019. Total income fell 6.6% to Rs 108,312.93 crore in Q4 March 2020 over Q4 March 2019.

Bharti Airtel rose 0.89%. Bharti Airtel and Comfort Investments II, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of The Carlyle Group announced an agreement under which Comfort Investments II will invest US$235 million in Nxtra Data (Nxtra), a wholly owned subsidiary of Airtel engaged in the data centre business.

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Hero MotoCorp rose 0.66%. Hero MotoCorp has commenced the dispatches of its new motorcycle - the Hero Xtreme 160R. The Xtreme 160R further strengthens Hero MotoCorp's presence in the premium motorcycle segment.

Godfrey Phillips India dropped 2.35% after the company reported 19.86% fall in consolidated net profit to Rs 38.69 crore on 3.56% rise in total income to Rs 622.15 crore in Q4 March 2020 over Q4 March 2019.

Techno Electric & Engineering Company lost 4.4% after the company reported 88.84% fall in consolidated net profit to Rs 3.36 crore on 42.04% fall in total income to Rs 121.24 crore in Q4 March 2020 over Q4 March 2019.

Kalpataru Power Transmission rose 3.03% after the company secured new orders / notification of award of Rs 956 crore.

GMM Pfaudler rose 3.25% after the company has entered into a binding term sheet with De Dietrich Process Systems India (DDPSI) for itemized sale of their manufacturing facility at Hyderabad, Telangana.

Ahluwalia Contracts (India) declined 4.03% after the company reported 80.35% fall in consolidated net profit to Rs 6.09 crore on 14.23% rise in total income to Rs 552.12 crore in Q4 March 2020 over Q4 March 2019.

Prime Minister Narendra Modi addressed the nation at 16:00 IST yesterday, 30 June. This was his sixth address to the nation since the outbreak of COVID-19. Modi announced that the Pradhan Mantri Garib Kalyan Anna Yojana, the free foodgrain scheme to poor families, will be extended till November 2020. More than 80 crore people will be given free grains for the next five months.

Fitch Ratings on June 30 lowered India's growth forecast for 2021-22 fiscal to 8% from 9.5% projected last month. The rating agency, however, retained its projection of Indian economy contracting by 5% in the current fiscal.

Global Markets:

Overseas, Asian stocks are trading higher on Wednesday as a private survey showed China's factory activity for June was better than expected. Markets in Hong Kong are closed for trading on Wednesday for a holiday.

Results of a private survey released on Wednesday showed China's manufacturing activity expanded in June, hitting its highest level since December 2019. The Caixin/Markit manufacturing Purchasing Manager's Index came in at 51.2 as compared to 50.7 in May.

A private survey showed Chinese manufacturing activity in June growing more than expected, with the Caixin/Markit manufacturing Purchasing Manager's Index (PMI) coming in at 51.2 last month as compared to 50.7 in May.

The Bank of Japan's quarterly Tankan survey released Wednesday showed a worsening business mood in the country. The headline index for large manufacturers' sentiment worsened to -34 in June, as compared with -8 in March.

Japan's factory activity shrank for a 14th straight month in June on sharp reductions in output and new orders, pointing to a heavy hit to demand from the coronavirus pandemic, a business survey showed on Wednesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 40.1 from 38.4 in May and a preliminary 37.8 released last week.

In US, stocks finished higher Wednesday, as data showed a recovery in consumer confidence and higher home prices, helping to offset ongoing concerns about the rising number of new coronavirus cases in many American states.

Both the Dow and S&P 500 index booked their best quarterly performance in more than 20 years, while the Nasdaq Composite had its best quarter since 1999, as the indexes recovered from the lows seen in late March when the coronavirus crisis forced business activity to grind to a halt.

Stocks rallied after testimony to Congress by Federal Reserve chair Jerome Powell and U.S Treasury Secretary Steve Mnuchin underscored an ongoing commitment to anchor the U.S. economy through the global public health disaster.

Mnuchin said the Treasury and Fed were looking at extending the Fed's established 11 emergency lending facilities to include asset-based lending markets, but also reiterated that additional types of COVID-19 aid likely will need to be addressed by Congress under the next phase of stimulus.

In U.S. economic data, the Case-Shiller house price index rose 4% on an annual basis in April. The index of consumer confidence rose to 98.1 this month from a revised 85.9 in May, the Conference Board said Tuesday.

Back home, the Sensex and the Nifty ended a volatile session with tepid losses on Tuesday. PSU banks and pharma stocks tumbled. Rising coronavirus cases across the globe spooked investors. The barometer S&P BSE Sensex declined 45.72 points or 0.13% at 34,915.80. The Nifty 50 index fell 10.30 points or 0.10% at 10,302.10.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,000.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,051.31 crore in the Indian equity market on 30 June, provisional data showed.

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First Published: Jul 01 2020 | 9:30 AM IST

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