Nifty trades above 10,800 mark

Key domestic indices traded in narrow range with modest gains in afternoon trade. The barometer index, the S&P BSE Sensex rose 179.95 points or 0.49% at 36,651.63. The Nifty 50 index gained 62.85 points or 0.58% at 10,802.45.

The broader market outperformed the Sensex. The S&P BSE Mid-Cap index was up 1.06%. The S&P BSE Small-Cap index rose 1%.

Buyers outnumbered sellers. On the BSE, 1,527 shares rose and 902 shares fell. A total of 153 shares were unchanged. In Nifty 50 index, 39 stocks advanced while 11 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,091.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,659.91 crore in the Indian equity market on 16 July, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 1,38,09,681 far with 5,89,990 deaths. India reported 3,42,473 active cases of COVID-19 infection and 25,602 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

BPCL (up 9.49%), JSW Steel (up 4.42%), Bharti Infratel (up 4.13%), ONGC (up 4.07%) and Tata Steel (up 3.75%) were top gainers.

Nestle India (down 1.69%), TCS (down 1.66%), Infosys (down 1.34%), Axis Bank (down 1.08%) and Dr Reddy's Laboratories (down 1.02%) were major losers.

Q4 Results Today:

Britannia Industries (up 0.83%), ICICI Lombard General Insurance Company (up 3.09%) will announce their quarterly earnings today.

Earnings Impact:

HCL Technologies was up 0.55%. The IT company's consolidated net profit rose 31.7% to Rs 2,925 crore on 8.6% increase in revenue to Rs 17,841 crore in Q1 June 2020 over Q1 June 2019. On a sequential basis, net profit declined 7.3% and revenue fell 4% in Q1 June 2020 over Q4 March 2020. Consolidated EBITDA fell 3.3% to Rs 4566 crore in Q1 June 2020 over Q4 March 2020. Operating margin (EBIT) fell 5.7% to Rs 3660 crore in Q1 June 2020 over Q4 March 2020. EBIT margin stood at 20.5% in Q1 June 2020, lower than 20.9% in Q4 March 2020 and higher than 17.1% in Q1 June 2019. The result was announced before market hours today, 17 July 2020.

L&T Technology Services (LTTS) declined 3.83% after the company's consolidated net profit declined 42.5% to Rs 117.20 crore on a 3.9% fall in net sales to Rs 1,294.70 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin stood at 15.9% in Q1 June 2020, lower than 20.2% in Q1 June 2019. Meanwhile, LTTS has executed a definitive agreement to acquire 100% stake in Orchestra Technology, a specialist technology solutions provider for the telecom industry.

L&T Finance Holdings advanced 2.26%. The company's consolidated net profit tanked 73.2% to Rs 147.44 crore on 1.8% slip in total income to Rs 3,623.14 crore in Q1 June 2020 over Q1 June 2019. An exceptional item during the quarter ended 30 June 2020 represents net gain of Rs 225.61 crore on the divestment of entire stake in the subsidiary company, L&T Capital Market concluded on 24 April 2020. The company created an incremental provision of Rs 577 crore against its standard assets book in this quarter. The COVID-19 provision was at Rs 277 crore in Q1 FY21 (5% of 1-90 DPD book with moratorium, along with Rs 209 crore in Q4 FY20). Its macro-prudential provisions was at Rs 300 crore during the quarter. The Average Assets under Management (AAUM) of the Investment Management business stood at Rs 58,362 crore in Q1 FY21.

Cyient jumped 4.80% after the Hyderabad based IT company's consolidated net profit surged 80% to Rs 81.40 crore on 7.62% decline in revenue from operations to Rs 991.70 crore in Q1 June 2020 over Q4 March 2020. The company's services revenue was at $112.2 million, registering a de-growth of 15.2% Q-o-Q (quarter-on-quarter) and de-growth of 18.6% Y-o-Y (year-on-year). DLM revenue stood at $18.4 million, recording a growth of 8.5% Q-o-Q and de-growth of 1.4% Y-o-Y.

Stocks in Spotlight:

Yes Bank gained 0.78%. The bank's FPO to raise Rs 15,000 crore was subscribed 59% till 13:30 IST on Friday (17 July). The FPO opened on 15 July 2020 and will close today, 17 July 2020. A discount of Re 1 per equity share will be given to the eligible employees of the bank bidding in employee reservation portion. In the FPO, shares can be bid in lots of 1,000 equity shares. The private sector bank is offering 909.98 crore shares under the public offer at a price band of Rs 12-13 per share. Yes Bank plans to utilise the proceeds from issue to meet its capital requirements to support growth and expansion. On Tuesday (14 July), the private lender allotted 3,41,53,84,614 equity shares to a total of 14 anchor investors at Rs 12 per share.

PTC India rallied 3.84% after the company said it has invited bids from interested investors for acquiring controlling stake in its subsidiary PTC India Financial Services (PFS). As on March 2020, PTC India held 64.99% in PFS.

Global Markets:

Most European shares declined while most Asian shares advanced on Friday. European leaders will meet in Brussels on Friday to look forward to a deal on the proposed 750 billion euro ($853.8 billion), which could face opposition from the four member-states, namely, Austria, Denmark, Sweden and the Netherlands. The bill may also be subject to a veto from Hungary, which has opposed linking the distribution of funds with the upholding of the EU's democratic values.

The ECB, for the time being, has made no changes to its asset-buying program or to interest rates at a meeting Thursday. Global debt surged to a record $258 trillion in the first quarter of 2020.

In Asia, Singapore's trade data reportedly released on Friday showed that non-oil domestic exports (NODX) for June soared to 16.1% as compared to a year ago, helped by shipments of pharmaceuticals, specialised machinery and electronics.

The US stock market finished session lower on Thursday, 16 July 2020, with the Dow Jones Industrial Average snapping a four-day winning streak, as elevated levels of unemployment claims heightened concerns about the economic toll from rising coronavirus cases. Meanwhile, US-China tensions also weighed down stocks.

A jump in cases of the virus has forced California and other states to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.

US first-time claims for unemployment benefits slipped to 1.300 million in the week ended July 11th, a report released by the Labor Department on Thursday showed, a decrease of 10,000 from the previous week's revised level 1.310 million. Jobless claims fell for the fifteenth consecutive week, although the pace of decline has slowed considerably from April and May.

US retail sales soared by 7.5% in June after skyrocketing by an upwardly revised 18.2% in May, reflecting the reopening of businesses following the coronavirus-induced lockdowns, the Commerce Department reported on Thursday.

Meanwhile, investor focus is turning towards the action the United States might adopt further stimulus to help steer the world's largest economy through a worsening coronavirus pandemic.

As per media reports, the US Congress is set to begin debating such a package next week, as several states in the South and West implement fresh lockdown measures to curb cases. While May and June U.S. retail sales continued to show signs of recovery, questions, however, remain as to how long this recovery could last for.

US President Donald Trump's administration is also reportedly mulling a stateside travel ban on all members of the ruling Chinese Communist Party (CCP) and their families.

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