As per provisional closing, the barometer S&P BSE Sensex rallied 429.25 points or 1.21% at 35,843.45. The Nifty 50 index surged 131.95 points or 1.27% at 10,562.
The Nifty opened higher at 10,493.05 and firmed up as the session progressed. The index crossed 10,550 level in afternoon trade and hit the day's high of 10,598.20, before profit booking set in in late trade.
In the broader market, the S&P BSE Mid-Cap index surged 1.11% while the S&P BSE Small-Cap index rose 0.91%. Both these indices lagged the Sensex.
The market breadth was strong. On the BSE, 1,711 shares rose and 1,052 shares fell. A total of 127 shares were unchanged. In Nifty 50 index, 36 stocks advanced and 14 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 1,06,95,608 far with 5,16,255 deaths. India reported 2,26,947 active cases of COVID-19 infection and 17,834 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
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Buzzing Index:
Financial stocks were in demand after the government on Wednesday launched special liquidity scheme of Rs 30,000 crore for the non-bank lenders.
Among the non-banking finance companies (NBFCs), Mahindra & Mahindra Financial Services (up 6.64%), Muthoot Capital Services (up 4.99%), IDFC (up 2.69%), Indiabulls Housing Finance (up 2.25%), LIC Housing Finance (up 1.99%), Edelweiss Financial Services (up 1.43%), Muthoot Finance (up 1.05%) and Manappuram Finance (up 0.97%) advanced.
With a view to improving the liquidity position of NBFCs as well as HFCs, the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman had launched a special liquidity scheme of Rs 30,000 crore on 13 March 2020. The Reserve Bank of India (RBI) will provide funds for the scheme by subscribing to government guaranteed special securities issued by the Trust. The total amount of such securities issued outstanding shall not exceed Rs 30,000 crores at any point of time.
The Government of India will provide an unconditional and irrevocable guarantee to the special securities issued by the Trust. The scheme was launched on 1 July 2020 through a Special Purpose Vehicle in the form of SLS Trust set up by SBI Capital Markets (SBICAP). The scheme will remain open for 3 months for making subscriptions by the Trust. The period of lending (CPs/NCDs of NBFCs/HFCs for short duration of upto 90 days) by the Trust shall be for a period of upto 90 days. The financing would be used by the NFBCs/HFCs only to repay existing liabilities and not to expand assets. Further, those market participants who are looking to exit their standard investments with a residual maturity of 90 days may also approach the SLS Trust.
Stocks in Spotlight:
Tata Motors was up 0.79%. The company's total domestic automobile sales slumped 82% to 23,845 units in Q1 June 2020 as against 1.31 lakh units in Q1 June 2019.Sales were impacted by a sharp decline in the production of commercial as well as passenger vehicles owing to the lockdown and subdued market demand. Total commercial vehicles (CV) sales were down 90% to 10,476 units while the total passenger vehicles (PV) sales slumped 61% to 14,571 units in Q1 FY21 over Q1 FY20.
Bajaj Auto was up 1.17%. The auto major reported 31% decline in total vehicles sales to 2.78 lakh units in June 2020 as against 4.04 lakh units in June 2019. The company's total vehicle sales surged 119% in June from 1.27 lakh units registered in May 2020. Due to nationwide lockdown, the company's sales were disrupted in April and May this year. In April, there were no sales in the domestic market, but the company exported 37,878 units.
TVS Motor Company rose 0.36%. The company recorded over three-fold increase in June 2020 sales to 198,387 units from 58,906 units sold in the month of May 2020. Its June sales, however, are lower by 33.22% as compared to 297,102 units sold in the same period last year. Total exports were 53,123 units in the month of June 2020, down by 24% from 69,900 units in June 2019. TVS Motor said it is witnessing a positive uptake in both domestic retail as well as exports. The company faced supply chain constraints in June; however, it has undertaken various countermeasures, some of which have started yielding results in June itself. The company is expecting to overcome these in the month of July.
Pfizer jumped 5.37% after the company's US-based parent reported positive preliminary results from a joint project to develop a coronavirus vaccine. An early trial of an experimental coronavirus vaccine from US-based Pfizer and Germany's BioNTech showed it's safe and prompted patients to produce antibodies against the new virus, keeping it in the lead pack for a pandemic shot. The preliminary data come from a so-called phase 1/2 trial that aimed to show the vaccine is not toxic and triggers an immune system response to prepare the body to fight off the virus.
NMDC rose 0.93%. The state-owned miner said its iron ore production was flat at 2.52 million tonnes (MT) in June 2020 compared with June 2019. Iron ore sales declined 6.77% to 2.48 MT in June 2020 as against 2.66 MT in June 2019.
Coal India shed 0.15% after provisional coal production dropped 12.8% to 39.20 million tonnes (MT) while provisional coal offtake shrunk by 15% to 41.61 MT in June 2020 over June 2019.
Jindal Steel & Power (JSPL) gained 0.2%. The company recorded a 12% growth in sales volumes to 1.56 million tonnes (MT) and 8% rise in standalone steel (including pig iron) production to 1.67 MT in Q1 June 2020 over Q4 March 2020 (Q-o-Q). The export sales contributed to 58% of total sales volumes in Q1 FY21. The company's consolidated sales rose by 7% to 2.07 MT (Q-o-Q) during Q1 FY21. Consolidated production fell 4% (Q-o-Q) to 2.03 MT in Q1 FY21.
Eveready Industries India gained 1.90% to Rs 88.50 after consolidated net profit surged to Rs 63.07 crore in Q4 March 2020, higher than net profit of Rs 4.54 crore in Q4 March 2019. The company reported exceptional gain of Rs 62.03 crore on sale of land at Hyderabad. Consolidated net sales declined 32.4% to Rs 224.08 crore in Q4 FY20 over Q4 FY19. Profit before tax (PBT) stood at Rs 78.09 crore in Q4 FY20, higher than Rs 6.06 crore in Q4 FY19. Current tax expense jumped to Rs 14.23 crore in Q4 FY20 as against Rs 1.08 crore in Q4 FY19.
Global Markets:
Shares in Europe and Asia jumped on Thursday, taking cues from the overnight rally on Wall Street as hopes for development of a coronavirus vaccine offset some of the concerns about rising coronavirus cases in the United States.
Investors continued to monitor the escalating tension between American and Beijing, over the Hong Kong issue. As per media reports, China said it will announce reciprocal curbs on U.S. media outlets in the country. The comment reportedly comes after the United States said in June it would start treating another four major Chinese media outlets as foreign embassies, following similar moves on other outlets earlier in the year, in a move likely to further sour fraught ties between the world's top two economies, media reports said.
The US stock market finished session mostly higher on Wednesday, 1 July 2020, with the Nasdaq close at a record high, as bullish investors took heart from cheering economic data and news of a potential coronavirus vaccine.
The ADP National Employment Report showed the nonfarm private sector created 2.4 million jobs in June, with 70% of new jobs in the leisure, hospitality, trade and construction industries. Meanwhile, data from the Institute for Supply Management (ISM) showed index of US factory activity jumped to a reading of 52.6 last month from 43.1 in May, ending three straight months of contraction, or readings below 50.
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