Key equity barometers firmed up and hit fresh intraday high in mid-morning trade. At 10:24 IST, the barometer index, the S&P BSE Sensex, was up 233.58 points or 0.67% at 35,149.38. The Nifty 50 index added 42.75 points or 0.41% at 10,344.85.
In the broader market, the S&P BSE Mid-Cap index was down 0.02% while the S&P BSE Small-Cap index gained 0.27%.
The market breadth favored the buyers. On the BSE, 1270 shares rose and 1166 shares fell. A total of 116 shares were unchanged.
Economy:
The seasonally adjusted IHS Markit India Manufacturing PMI surged to 47.2 in June from 30.8 in May. Despite the rise, the latest reading pointed to a third successive monthly decline in the health of the manufacturing sector, albeit one that was far softer than registered in April and May.
Commenting on the latest survey results, Eliot Kerr, Economist at IHS Markit, said: "India's manufacturing sector moved towards stabilisation in June, with both output and new orders contracting at much softer rates than seen in April and May. However, the recent spike in new coronavirus cases and the resulting lockdown extensions have seen demand continue to weaken."Should case numbers continue rising at their current pace, further lockdown extensions may be imposed, which would likely derail a recovery in economic conditions and prolong the woes of those most severely affected by this crisis."
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Buzzing Index:
The Nifty PSU Bank index rose 1.90% to 1,455.10 amid value buying. The index fell 5.01% in past two sessions.
Among the index constituents, Bank of Baroda (up 3.91%), Canara Bank (up 2.49%), SBI (up 1.99%), Punjab National Bank (up 1.87%), Indian Bank (up 1.85%), Union Bank of India (up 1.26%), Bank of India (up 0.51%), Bank of Maharashtra (up 0.45%) and CBI (up 0.28%) advanced.
Indian Overseas Bank (down 4.51%), UCO Bank (down 2.02%) and Jammu and Kashmir Bank (down 1.66%) declined.
Earnings Impact:
ONGC fell 1.90% to Rs 79.85 after the company posted a standalone net loss of Rs 3,098.26 crore in the fourth quarter. The company had reported a net profit of Rs 4,239.50 in the same period last year. Net sales declined by 19.8% to Rs 21,456.20 crore in Q4 FY20 over Q4 FY19.
ONGC's crude oil price realization from its nominated fields fell 20.9% YoY to $49.01 per barrel while the price realization from the joint venture fields was down 19.4% YoY to $49.39 per barrel during the March quarter. Gas price also fell 3.9% to $3.23 per million British thermal unit (mmbtu) in Q4 FY20.
"The Company has recognized an Exceptional Item towards impairment loss of Rs. 4,899 crore in Q4 FY'20 to factor into estimated future crude oil and natural gas prices. This has adversely impacted PAT for Q4 FY'20 and FY'20 as compared to last year," ONGC said.
Vodafone Idea declined 2.82 % to Rs 10.32 after the company recorded a consolidated net loss of Rs 11,643.50 crore in Q4 March 2020, higher than net loss of Rs 4,881.90 crore in Q4 March 2019. Revenue from operations fell 0.17% to Rs 11,754.20 crore in Q4 FY20 over Rs 11,775 crore in Q4 FY19.
Gross debt (excluding lease liabilities) as of 31 March 2020 was Rs 1,15,000 crore, including deferred spectrum payment obligations due to the government of Rs 87,650 crore. Cash & cash equivalents were Rs 2,480 crore and net debt stood at Rs 1,12,520 crore as against Rs 1,03,310 crore in Q3FY20.
The subscriber base declined to 291 million in Q4 FY20 from 304 million in Q3 FY20. Subscriber churn remained stable in Q4 FY20 at 3.3%. Average revenue per user (ARPU) for Q4 FY20 improved to Rs 121 from Rs 109 in Q3 FY20, driven by the prepaid tariff hike effective from December 2019.
Global Markets:
Most Asian stocks edged higher on Wednesday as improving economic data from China offset by worries about surging coronavirus cases in the United States.
China's Caixin/Markit manufacturing PMI in June came in at 51,2, against previous month's reading of 50.7. PMI readings above 50 signify expansion, while those below that indicate contraction.
The US stock market finished session higher on last session of the month and quarter, Tuesday, 30 June 2020, as the investors risk sentiments boosted up with better than expected domestic economic data which helping to offset concerns over the health of the global economy from the coronavirus pandemic.
Wall Street stocks rallied for a second straight session on Tuesday, as investors weighed climbing coronavirus cases with positive economic data. The Conference Board released a report showed a bigger than expected improvement in consumer confidence in the month of June. The Conference Board said its consumer confidence index jumped to 98.1 in June from a downwardly revised 85.9 in May.
Stocks gains were also supported by the testimony of the Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin's to the House Financial Services Committee regarding the response to the coronavirus pandemic. Mnuchin said the Treasury and Fed were looking at extending the Fed's established 11 emergency lending facilities to include asset-based lending markets, but also reiterated that additional types of COVID-19 aid likely will need to be addressed by Congress under the next phase of stimulus.
Powell emphasized that the 'overriding goal' of the central bank's facilities is to help get the roughly 25 million workers who lost jobs during the pandemic back to work, while also warning that a second wave of COVID-19 infections could undermine consumer confidence again.
Coronavirus cases continue to climb in multiple US states, leading to new restrictions and rollbacks of reopening phases. States such as Texas, California, Florida, and Arizona have rolled back reopening plans and imposed new restrictions as local COVID-19 cases have spiked. On Monday, New Jersey delayed allowing indoor dining in its phased reopening, and New York said it would also consider postponing the phase.
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