The benchmark indices hit fresh intraday high in early afternoon trade. The Nifty regained the 9,900 mark. Sentiment got a boost after Prime Minister Narendra Modi assured industry leaders on Tuesday that India will get its economic growth back and is already on that path with government's various reforms.
At 12:32 IST, the barometer index, the S&P BSE Sensex, was up 309.12 points or 0.93% at 33,612.64. The Nifty 50 index gained 89.55 points or 0.91% at 9,915.70.
The broader market traded firm. The S&P BSE Mid-Cap index rose 1.05% while the S&P BSE Small-Cap index added 1.70%.
The market breadth was strong. On the BSE, 1536 shares rose and 679 shares fell. A total of 149 shares were unchanged. In the Nifty 50 index, 37 shares advanced while 13 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,575.46 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 459.25 crore in the Indian equity market on 1 June, provisional data showed.
Economy:
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Prime Minister Narendra Modi while addressing the annual session of the Confederation of Indian Industry (CII), through via a virtual online meeting on Tuesday called for the corporate leaders to take an oath to make India self-reliant. PM Modi shared his vision on 'Getting Growth Back' with representatives of the India Inc. "We will take structural reforms that will change course of the country; we will together build self-reliant India." Getting back on track is highest priority for government, he added.
Modi pointed out how reforms like allowing private enterprises into strategic sectors like space and atomic energy, labour reforms, removal of APMC, which will allow farmers freedom to sell their produce freely, etc will all throw up growth prospects.
Meanwhile, Moody's Investors Service on Monday downgraded India's rating to Baa3 and maintained the negative outlook. Moody's has downgraded India's local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2.
The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period. Moody's expects prolonged period of slow growth to continue well beyond the pandemic. India's progress has been hamstrung by tardy implementation of reforms, it said.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.73% to 30.51. The Nifty June 2020 futures were trading at 9,872, a discount of 66.40 points compared with the spot at 9,905.15.
On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 18.93 lakh contracts at the 10,000 strike price. Maximum put OI of 27.14 lakh contracts was seen at 9,000 strike price.
Covid-19 Update:
Total COVID-19 confirmed cases worldwide stood at 62,71,577 far with 3,75,656 deaths. India reported 97,581 active cases of COVID-19 infection and 5,598 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Realty index rose 2.80% to 190.80, extending gains for sixth day. The index has gained 16.7% in six sessions while the benchmark Nifty 50 index has added 9.7% during the same period.
Brigade Enterprises (up 7.23%), Godrej Properties (up 5.94%), Phoenix Mills (up 5.28%), D B Realty (up 4.98%), Unitech (up 4.62%), Peninsula Land (up 4.35%), Oberoi Realty (up 2.76%), Sobha (up 2.56%), Mahindra Lifespace Developers (up 2.53%), Prestige Estates Projects (up 1.63%) and Omaxe (up 0.88%) edged higher.
Stocks in Spotlight:
Coal India (CIL) fell 3.27% to Rs 143.65 after provisional coal production dropped 11.3% to 41.43 million tonnes (MT) in May 2020 compared with 46.69 MT in May 2019. Provisional coal offtake slipped 23.3% to 39.95 million tonnes (MT) in May 2020 as against 52.1 MT in May 2019.
NMDC rose 1.30% to Rs 85.40. The iron miner's monthly production dropped 24.67% to 2.29 million tonnes (MT) in May 2020 from 3.04 MT in May 2019. The company's monthly sales tanked 24.33% to 2.55 MT in May 2020 as against 3.37 MT in May 2019. On a month-on month (MoM) basis, monthly production jumped 27.22% in May 2020 from 1.80 MT in April 2020. Sales surged 84.78% during the month from 1.38 MT in April 2020.
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