Key indices are trading with modest gains in early trade. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 165.13 points or 0.44% at 37,828.46. The Nifty 50 index was up 44.15 points or 0.4% at 11,145.80. Investors are awaiting outcome of the Monetary Policy Committee (MPC) meeting.
The S&P BSE Mid-Cap index was up 0.56%. The S&P BSE Small-Cap index was up 0.51%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1067 shares rose and 549 shares fell. A total of 81 shares were unchanged.
RBI policy outcome:
Monetary Policy Committee (MPC) meeting outcome will be watched. The Reserve Bank of India's three-day monetary policy meeting commenced on 4 August 2020. RBI will announce its policy stance today, 6 August 2020. Investors will keep an eye on whether RBI extends moratorium beyond August 2020.
Meanwhile, Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi's term of appointment was extended by 18 months. The current SEBI Chairman's term was due to end on August 31, 2020.
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Stocks in news:
HDFC rose 0.78%. HDFC on Wednesday said that its board had approved the launch of qualified institutional placement (QIP) offering to raise up to Rs 14,000 crore by selling equity shares and warrants. HDFC had fixed a floor price of Rs 1,838.94 per share for the QIP offering. The lender added that it's board has also approved raising up to Rs 9,000 crore through issuance of secured redeemable non convertible debentures.
Canara Bank gained 0.97% after the bank reported 23.45% rise in net profit to Rs 406.24 crore on 47.1% rise in total income to Rs 20,685.91 crore in Q1 June 2020 over Q1 June 2019.
DLF surged 3.23%. DLF reported consolidated net loss of Rs 70.65 crore in Q1 June 2020 as compared to net profit of Rs 414.72 crore in Q1 June 2019. Total income fell 64.79% to Rs 646.98 crore in Q1 June 2020 over Q1 June 2019.
JK Lakshmi Cement lost 4.25% after the company reported 1.79% fall in consolidated net profit to Rs 48.92 crore on 19.56% fall in total income to Rs 918.54 crore in Q1 June 2020 over Q1 June 2019.
Hawkins Cooker rose 2.03%. The company reported 52.85% fall in net profit to Rs 6.45 crore on 28.88% fall in total income to Rs 101.61 crore in Q1 June 2020 over Q1 June 2019.
Apollo Tyres dropped 3.41% after the company reported consolidated net loss of Rs 134.58 crore in Q1 June 2020 as compared to net profit of Rs 141.60 crore in Q1 June 2019. Total income fell 33.46% to Rs 2,900.28 crore in Q1 June 2020 over Q1 June 2019.
Inox Leisure shed 0.23%. The company reported consolidated net loss of Rs 73.64 crore in Q1 June 2020 as compared to net profit of Rs 27.01 crore in Q1 June 2019. Total income fell 99.4% to Rs 2.97 crore in Q1 June 2020 over Q1 June 2019.
Global Markets:
Overseas, Asian stocks were mixed Thursday as investors continued to watch tensions between the U.S. 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.
Reports suggested that Trump administration officials and congressional Democratic leaders are working to reach a coronavirus aid bill deal by the end of the week even if the parties still remain far apart on the issues.
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.
Back home, key benchmark indices ended near flat line after a volatile session on Wednesday. Weak domestic macroeconomic data spoiled investors sentiment. Investors were also cautious ahead of the outcome of the RBI's monetary policy meeting on Thursday, 6 August 2020. The barometer index, the S&P BSE Sensex fell 24.58 points or 0.07% at 37,663.33. The Nifty 50 index rose 6.40 points or 0.06% at 11,101.65.
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.
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