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Market drifts lower in early trade

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Last Updated : Aug 07 2020 | 9:50 AM IST

Key indices are trading lower in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 154.06 points or 0.41% at 37,871.39. The Nifty 50 index was down 37.30 points or 0.33% at 11,162.85. The market breadth, indicating the overall health of the market, is strong.

The S&P BSE Mid-Cap index was up 0.69%. The S&P BSE Small-Cap index was up 0.61%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1104 shares rose and 547 shares fell. A total of 67 shares were unchanged.

Results to watch:

Mahindra & Mahindra, Cipla, Siemens, Abbott India, Alkem Laboratories, among others will declare their April-June quarterly results on 7 August 2020.

Stocks in news:

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Wipro fell 0.16%. Wipro announced that it will join forces with Intel to enable Wipro's LIVE Workspace, Wipro's digital workspace solution with the Intel vPro platform.

Hindustan Petroleum Corporation (HPCL) rose 0.67% after the company reported 156.72% rise in consolidated net profit to Rs 2,252.65 crore on 46.6% fall in total income to Rs 38,315.41 crore in Q1 June 2020 over Q1 June 2019.

Vodafone Idea dropped 1.94% after the company reported consolidated net loss of Rs 25,460 crore in Q1 June 2020 as compared to net loss of Rs 4,873.90 crore in Q1 June 2019. Total income fell 6.93% to Rs 10,803.50 crore in Q1 June 2020 over Q1 June 2019.

Pidilite Industries rose 0.8%. The company reported 90.86% drop in consolidated net profit to Rs 26.78 crore on 56.32% fall in total income to Rs 898.31 crore in Q1 June 2020 over Q1 June 2019.

Lupin dropped 4.76% after the company reported 64.73% fall in consolidated net profit to Rs 106.90 crore on 10.34% fall in total income to Rs 3,571.70 crore in Q1 June 2020 over Q1 June 2019.

Lupin announced that its U.S. based wholly-owned subsidiary Lupin Pharmaceuticals Inc. has entered into an agreement with ForDoz Pharma Corp (ForDoz) for granting Lupin the exclusive rights to market and distribute 2 complex injectable assets in advanced stages of development in the U.S. and its territories.

Adani Enterprises fell 0.94%. The company reported 95.04% drop in consolidated net profit to Rs 29.79 crore on 50.05% fall in total income to Rs 5,502.02 crore in Q1 June 2020 over Q1 June 2019.

Indian Hotels Co reported rose 0.26%. The company reported consolidated net loss of Rs 279.92 crore in Q1 June 2020 as compared to net profit of Rs 5.66 crore in Q1 June 2019. Total income fell 75.32% to Rs 261.41 crore in Q1 June 2020 over Q1 June 2019.

Global Markets:

Overseas, Asian stocks are trading lower Friday as investors await several economic data releases for July.

In US, shares on Wall Street shrugged off a sluggish start and closed higher on Thursday, with the Nasdaq ending the session above 11,000 for the first time as investors hoped for a new fiscal stimulus package.

Investors remain hopeful that lawmakers can strike a deal on a fresh round of coronavirus relief for those Americans out of work, while both Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi said they remained optimistic on an agreement.

Democrats and Republicans have been at loggerheads, as they run up against a self-imposed deadline of Friday, over the scope of any new aid package, including over how much to provide in federal jobless assistance, which provided an extra $600 a week before it expired in July, in addition to state-provided benefits. The Trump administration on Wednesday also floated the idea of taking executive action if Democrats and Republicans aren't able to reach a compromise on providing further assistance to those worst hit by the viral outbreak.

Investors took heart after the number of Americans filing for jobless benefits for the week ended Aug. 1 fell to a three-week low of 1.186 million, a decline of 249,000 from the previous week's reading of 1.435 million. The number of people receiving traditional jobless benefits through the states, known as continuing claims, dropped by a seasonally adjusted 844,000 to 16.1 million in the week ended July 25.

US President Donald Trump said on Thursday it was possible the United States would have a coronavirus vaccine before the November election, a far more optimistic forecast than timing put forth by White House health experts.

Meanwhile, signs of growing China-U.S. tensions were evident as Secretary of State Mike Pompeo reportedly asked American companies to consider withholding their apps from phones made by China's Huawei Technologies. Those comments come as the U.S. has threatened to ban China-owned entertainment applications TikTok unless Microsoft Corp. can strike a deal to buy all or part of the company from ByteDance.

Back home, key benchmarks ended a volatile session with strong gains on Thursday. Banks and financial stocks were in action after the Reserve Bank of India (RBI) left key interest rates unchanged and allowed banks to restructure certain loans as part of efforts to revive the economy. The barometer index, the S&P BSE Sensex spurted 362.12 points or 0.96% at 38,025.45. The Nifty 50 index jumped 98.50 points or 0.89% at 11,200.15.

Foreign portfolio investors (FPIs) bought shares worth Rs 637.43 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 468 crore in the Indian equity market on 6 August, provisional data showed.

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First Published: Aug 07 2020 | 9:34 AM IST

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