Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 328.08 points or 0.89% at 37,348.22. The Nifty 50 index was up 90.35 points or 0.83% at 10,992.05. The Nifty is currently trading a tad below the psychological 11,000 mark after hitting day's high above that level in early trade.
The S&P BSE Mid-Cap index was up 0.55%. The S&P BSE Small-Cap index was up 0.7%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1096 shares rose and 472 shares fell. A total of 85 shares were unchanged.
Stocks in news:
HDFC Bank gained 2.86% after net profit rose 19.58% to Rs 6,658.62 crore on a 6.46% increase in total income to Rs 34,453.28 crore in Q1 June 2020 over Q1 June 2019. Profit before tax (PBT) rose 4.73% to Rs 8,937.75 crore in Q1 FY21 as against Rs 8,533.58 crore in Q1 FY20. Tax expense dropped 23.14% to Rs 2,279.13 crore in Q1 FY21 compared with Rs 2,965.42 crore in Q1 FY20.
The private sector lender said that the continued slowdown in economic activity due to COVID-19 outbreak has led to a decrease in retail loan origination, sale of third-party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees.
Muthoot Finance dropped 2.36%. The board of directors of Muthoot Finance on Saturday (18 July) decided to defer the proposal to sub-divide the equity shares of the company to a future date. The decision was taken due to the economic uncertainties amid Covid-19 outbreak and related slowdown in the economy.
Also Read
ICICI Lombard General Insurance Company rose 1.13% after the company reported a 28.5% rise in net profit to Rs 398.1 crore in Q1 June 2020 compared with Rs 309.81 crore in Q1 June 2019. The insurance company's total income rose nearly 2% to Rs 2844.17 crore in Q1 June 2020 compared with Rs 2791.08 crore in Q1 June 2019.
Mahindra & Mahindra Financial Services gained 2.21% after the company reported a 302.61% rise in consolidated net profit to Rs 431.72 crore in Q1 June 2020 compared with Rs 107.23 crore in Q1 June 2019. The company's total income rose 16.09% to Rs 3,310.65 crore in Q1 June 2020 compared with Rs 2,851.70 crore in Q1 June 2019.
The board of directors of the company has approved a proposal to issue equity shares on a rights basis to its existing shareholders for an amount not exceeding Rs 3,500 crore.
Cadila Healthcare rose 1.13%. Cadila Healthcare has received final approval from the US drug regulator to market butalbital, acetaminophen and caffeine tablets of various strengths. This combination of medication is used to treat symptom complex of tension (or muscle contraction) headache.
Housing and Urban Development Corporation (HUDCO) rose 0.99%. HUDCO said it achieved loan sanctions of Rs 1172.04 crore and loan releases of Rs 2284.76 crore as on 30 June 2020, for the financial year 2020-21.
Yes Bank fell 2.53% to Rs 19.30. Yes Bank's FPO ended with 93% subscription on Friday. The issue attracted bids for 847.86 crore equity shares as against the total issue size of 909.97 crore equity shares. The follow-on public offer (FPO) received bids for 523.48 crore shares from qualified institutional buyers (QIBs). The QIB segment was subscribed 1.90 times. Retail investors, non-institutional investors and employees of the bank had not fully subscribed their portion.
UCO Bank advanced 3.73%. The meeting of the board of directors of the bank is scheduled on 23 July 2020 to consider and approve the proposal of raising of equity capital during the financial year 2020-21. The capital will be raised through various modes such as Follow on Public Offer (FPO), Qualified Institutional Placement (QIP), Preferential issue, right issue etc.
Global Markets:
Overseas, Asian stocks were trading lower on Monday as China maintained its benchmark lending rate for the third straight month.
China kept both its one-year and five-year loan prime rate unchanged, as its economy continued to recover after reopening following the coronavirus crisis. The one-year loan prime rate (LPR) was kept unchanged at 3.85%, while the five-year LPR remained at 4.65%.
Japan's exports dived 26.2% in June from a year earlier, data showed. Imports fell 14.4%. In May, Japan's exports had fallen 28.3%, the fastest pace since the global financial crisis as U.S.-bound car shipments plunged.
In US, stocks closed Friday mostly along the flatline as investors reacted to disappointing consumer sentiment data and gauged the potential for additional fiscal stimulus in the U.S. and Europe while COVID-19 cases continue to climb.
Netflix reported second-quarter earnings that missed analyst expectations, pushing the stock down 6.5%. The company's weak guidance for third-quarter subscriber growth a key metric for the streaming giant also contributed to the steep sell-off in the stock.
On the macro front, the early reading of the consumer-sentiment survey in July fell to 73.2 from 78.1 last month, the University of Michigan said Friday. Final results for July will be released in two weeks. The index has fallen close to a pandemic low, erasing almost all the gains in the prior two months.
Back home, key barometers ended with strong gains on Friday, extending their winning streak for third consecutive session. Significant buying in the final hour of trade pushed the indices near their day's high. Positive global cues supported buying in domestic shares.
The barometer S&P BSE Sensex surged 548.46 points or 1.50% at 37,020.14. The Nifty 50 index jumped 161.75 points or 1.51% at 10,901.70. Both these indices jumped over 2.7% in three sessions.
Foreign portfolio investors (FPIs) bought shares worth Rs 697.08 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 209.42 crore in the Indian equity market on 17 July, provisional data showed.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content