As per provisional closing data, the barometer index, the S&P BSE Sensex rose 86.47 points or 0.22% at 38,614.32. The Nifty 50 index added 23 points or 0.2% at 11,408.40.
The Nifty opened higher at 11,452.15, but quickly pared gains. The index traded sideways for most part of the session above 11,400 mark. The index firmed up in mid-afternoon trade and managed to settle with decent gains.
In the broader market, the S&P BSE Mid-Cap index surged 0.58% while the S&P BSE Small-Cap index added 1.16%.
Buyers outnumbered sellers. On the BSE, 1794 shares rose and 989 shares fell. A total of 171 shares were unchanged.
Investors are awaiting minutes from the US Federal Reserve's recent meeting due on Wednesday which may provide some insight into how the central bank sees the recovery playing out. The Fed has cut rates to near zero to bolster business through the pandemic.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,134.57 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 379.38 crore in the Indian equity market on 18 August, provisional data showed.
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COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 22,059,933 with 7,79,557 deaths. India reported 6,76,514 active cases of COVID-19 infection and 52,889 deaths while 20,37,870 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty PSU Bank index gained 2.38% to 1,462.70. The index gained 3.3% in two days.
Bank of India (up 4.73%), Punjab National Bank (up 4.11%), Indian Overseas Bank (up 3.3%), Canara Bank (up 3.09%), Bank of Maharashtra (up 2.9%), Bank of Baroda (up 2.47%) and Union Bank of India (up 1.87%) were top gainers in PSU Bank segment.
Stocks in Spotlight:
Reliance Industries (RIL) was up 0.63% RIL announced that its subsidiary Reliance Retail Ventures (RRVL) has acquired a majority equity stake in Vitalic Health (Vitalic) and its subsidiaries (collectively known as Netmeds') for approximately Rs 620 crore. This investment represents 60% holding in the equity share capital of Vitalic and 100% direct equity ownership of its subsidiaries, viz: Tresara Health, Netmeds Market Place and Dadha Pharma Distribution. Speaking on this strategic investment, Isha Ambani, Director, RRVL, said, the addition of Netmeds enhances Reliance Retail's ability to provide good quality and affordable health care products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers.
ICICI Bank added 0.87% to Rs 372.60. The media reported that the People's Bank of China (PBOC) could have acquired a very small stake in ICICI Bank by investing Rs 15 crore through the recently closed Rs 15,000-crore qualified institutional placement (QIP) of shares of the private bank. The Chinese central bank was reportedly among the 357 institutional investors that subscribed to the issue. Based on the bank's current market capitalization of Rs 2.57 lakh crore, the investment by PBOC translates into a 0.0058% stake in ICICI Bank.
Zee Entertainment Enterprises (ZEEL) jumped 6.24%. The company posted a 95% fall in consolidated net profit to Rs 29.28 crore in Q1 June 2020 as against Rs 529.76 crore in Q1 June 2019. Consolidated operating revenue for Q1 June 2020 stood at Rs 1,312 crore, falling 34.7% from Rs 2,008 crore in Q1 June 2019. ZEEL's advertising revenue tumbled 64.5% to Rs 421.06 crore in Q1 June 2020 from Rs 1,186.71 crore in same period previous year. Subscription revenue in quarter ending June 2020 stood at Rs 744.34 crore, registering a rise of 5% from Rs 708.77 crore in quarter ending June 2019. Separately, the company informed that Subhash Chandra, vide his letter dated 18 August 2020 had tendered his resignation, as the non-executive director of the company. The board requested him to act as 'chairman emeritus' with effect from 19 August 2020 and the same was accepted by him. The company announced the appointment of R. Gopalan as the 'chairman of the board' with immediate effect.
Yes Bank hit an upper circuit of 5% at Rs 15.78 after the private lender said it has repaid Rs 35,000 crore to the RBI out of the total special liquidity facility (SLF) of Rs 50,000 crore drawn for interim support. In its FY20 annual report, Yes Bank's chairman Sunil Mehta said, "In addition to the Special Liquidity Facility (SLF) of Rs 50,000 crore extended by RBI, the bank has since then received strong customer liquidity inflows. I am pleased to report that the bank has, as of date repaid Rs 35,000 crore of SLF and the balance will be repaid within the timelines set by RBI."
The Phoenix Mills declined 1.03%. The realty major informed that its board approved opening the qualified institutional placement (QIP) issue on Tuesday (18 August 2020). The company has set the floor price at Rs 611.31 per share for its qualified institutional placement (QIP) issue. The company's capital raising committee is scheduled to meet on Friday, 21 August 2020, to consider and approve the issue price of the equity shares to be allotted to qualified institutional buyers pursuant to the QIP issue.
CSB Bank spurted 11.50% to Rs 222 after net profit surged 174.10% to Rs 53.56 crore on a 28.84% jump in total income to Rs 496.88 crore in Q1 June 2020 over Q1 June 2019. The bank's gross non-performing assets (NPAs) stood at Rs 401.03 crore as on 30 June 2020 as against Rs 409.43 crore as on 31 March 2020 and Rs 513.41 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 3.51% as on 30 June 2020 as against 3.54% as on 31 March 2020 and 4.71% as on 30 June 2019. The ratio of net NPAs to net advances stood at 1.74% as on 30 June 2020 as against 1.91% as on 31 March 2020 and 2.04% as on 30 June 2019. The bank's provisions and contingencies soared 471.30% to Rs 57.53 crore in Q1FY21 over Rs 10.07 crore in Q1FY20. Provision Coverage Ratio (PCR) improved to 81.7% as on 30 June 2020 from 79.9% as on 30 June 2019 and 80% as on 31 March 2020. The operating profit of the bank increased to Rs 129.10 crore as on 30 June 2020 from Rs 40.10 crore as on 30 June 2019, registering a Y-o-Y (year-on-year) increase of 221.85%. It also registered an increase of 20.66% over Q4 FY20 due to improved NII and treasury profits. In Q1 FY21, the bank earned a Net Interest Income (NII) of Rs 185.30 crore as against Rs 132.50 crore with an absolute growth of Rs 52.80 crore or 40% Y-o-Y & 18% Q-o-Q (quarter-on-quarer). Net Interest Margin (NIM) improved to 4.06% in Q1 FY21 from 3.45% in Q1 FY20.
Global Markets:
European shares advanced while Asian stocks ended mixed on Wednesday. Japan's exports in July declined 19.2% as compared to a year ago, according to provisional trade statistics from the country's Ministry of Finance released Wednesday.
In Europe, UK inflation jumped unexpectedly last month to its highest rate since March, as clothing stores refrained from their usual summer discounts as they reopened after the coronavirus lockdown, official data showed on Wednesday.
Annual consumer price inflation rose to 1.0% in July from 0.6% in June, the Office for National Statistics (ONS) said. Clothing and footwear prices were the biggest contributor to the rise in inflation, the ONS said.
In US, the S&P 500 closed at a record high on Tuesday, rebounding from huge losses triggered by the coronavirus pandemic. Amazon, which rose 4.1%, was the largest gainer in the S&P 500. Strong sales growth was reported by major US retailers including Walmart, Kohl's and Home Depot. Meanwhile, Nasdaq clocked a record closing high.
The Dow Jones Industrial Average fell 66.84 points, or 0.24%, to 27,778.07, the S&P 500 gained 7.79 points, or 0.23%, to 3,389.78 and the Nasdaq Composite added 81.12 points, or 0.73%, to 11,210.84.
Data on Tuesday showed US homebuilding accelerated by the most in nearly four years in July in the latest sign the housing sector is emerging as one of the few areas of strength in an economy suffering a record slowdown. That further added to market optimism.
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