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Market drifts higher in early trade

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Capital Market
Last Updated : Sep 28 2020 | 9:50 AM IST

Trading for the week began on a firm note as the key indices are trading higher in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 221.57 points or 0.59% at 37,610.23. The Nifty 50 index was up 74.70 points or 0.68% at 11,124.95.

The S&P BSE Mid-Cap index was up 1.3%. The S&P BSE Small-Cap index was up 1.53%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1172 shares rose and 283 shares fell. A total of 58 shares were unchanged.

Stocks in news:

Reliance Industries (RIL) rose 0.82%. RIL on Saturday (26 September 2020) announced that its subsidiary, Reliance Retail Ventures, had received the subscription amount of Rs 7,500 crore from SLP Rainbow Holdings (Silver Lake). Reliance Retail Ventures has allotted equity shares to SLP Rainbow Holdings following which SLP Rainbow Holdings holds 1.75% of the fully diluted equity share capital of Reliance Retail Ventures, RIL said in a statement.

Dr. Reddy's Laboratories gained 1.07%. Dr. Reddy's Laboratories on 26 September 2020 announced the launch of Dimethyl Fumarate delayed-release capsules, a generic version of Tecfidera, approved by the US Food and Drug Administration (USFDA). Dr. Reddy's Dimethyl Fumarate delayed-release capsules are available in 120 mg and 240 mg capsules in bottle count sizes of 14 and 60 capsules, respectively. The drug is used to treat adults with various forms of multiple sclerosis.

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State Bank of India (SBI) advanced 1.65%. SBI said the board will on 30 September 2020 consider raising additional AT1 bonds to the extent of Rs 5,000 crore by way of issuance of Basel III compliant debt instruments in INR, within the overall capital plan earlier approved by the board for raising equity during FY 2021.

Indoco Remedies jumped 6.51%. Indoco Remedies on 26 September 2020 announced the launch of Fevindo (Favipiravir) 400 mg tablets in India. Fevindo-400 (Favipiravir) is an antiviral drug, effective against the RNA-based influenza virus. The drug has been approved by DCGI in the treatment of Covid-19. The drug reduces pill burden by 50% and ensures convenient dosing and better patient compliance, the company said in a statement.

Grasim Industries rose 1.69%. State-owned Life Insurance Corporation (LIC) of India has purchased 1.33 crore equity shares (2.033% equity) of Grasim Industries. Following the transaction, LIC has increased its shareholding in Grasim Industries to 11.864% from 9.831% earlier. The transaction took place through open market purchases between 14 May 2019 and 24 September 2020.

JSW Energy rose 1.99%. JSW Energy on Friday said its subsidiary, JSW Solar, received letter of awards for total blended wind capacity of 810 MW from Solar Energy Corporation (SECI).

CEAT gained 2.77%. CEAT on Friday (25 September 2020) said that its board approved raising Rs 250 crore through issue of 2,500 non-convertible debentures (NCDs) on a private placement basis, in one or more tranches. Further, the board also authorized the finance and banking committee of the company to approve the further raising of funds upto Rs 250 crore (over and above the raising of funds of Rs 250 crore) through issuance of NCDs on private placement basis, in one or more tranches.

Global Markets:

Overseas, Asian stocks are trading higher as investors turn cautious ahead of a U.S. Presidential debate and as coronavirus cases spike again in a blow to global economic recovery hopes.

China's industrial profits rose 19.1% in August, the country's National Bureau of Statistics announced over the weekend. Chinese economic data has been watched by investors for signs of the country's continued recovery from the coronavirus pandemic.

Investor focus will next be on the first debate between U.S. President Donald Trump and rival Joe Biden on Tuesday ahead of the November election.

In US, stock indexes closed higher after a choppy session Friday, as tech shares clawed back some of their big September declines. The Dow Jones Industrial Average closed 358.52 points higher, or 1.3%, at 27,173.96. The S&P 500 climbed 1.6% to 3,298.46. The Nasdaq Composite popped 2.26% to 10,913.56.

Shares of Amazon rose 2.5% and Facebook gained 2.1%. Apple advanced 3.8% and Microsoft climbed 2.3%. Netflix closed 2.1% higher. Novavax shares jumped nearly 11% after the company said Thursday it has started a final-stage study of its experimental COVID-19 vaccine in the U.K.

Cruise operators also contributed to Friday's gains. Carnival Corp, Norwegian Cruise Line and Royal Caribbean were up 9.7%, 13.7% and 7.7%, respectively.

Meanwhile, House Democrats are reportedly preparing a $2.4 trillion relief package that they could vote on as soon as next week. The bill would include enhanced unemployment benefits and aid to airlines, but the overall price tag remains well above what Republican leaders have said they are willing to spend.

Back home, the domestic equity benchmarks surged on Friday amid value buying after a recent selloff. The Nifty managed to regain the 11,000 mark as banks and IT shares bounced. The barometer index, the S&P BSE Sensex, jumped 835.06 points or 2.28% at 37,388.66. The Nifty 50 index surged 244.70 points or 2.26% at 11,050.25. The 50-unit index tumbled 6.89% in the previous six sessions.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,080.21 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,070.63 crore in the Indian equity market on 25 September, provisional data showed.

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First Published: Sep 28 2020 | 9:20 AM IST

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