Key equity indices ended a lacklustre trading session with modest gains on Friday. Firm cues from other Asian stock markets boosted trading sentiment. The Nifty closed near the 15,850 level after opening at 15,839.35. Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the green.
The S&P BSE Sensex, rose 226.04 points or 0.43% to 52,925.04. The Nifty 50 index added 69.90 points or 0.44% to 15,860.35.
Tata Steel (down 4.65%), Axis Bank (down 3.02%), State Bank of India (down 2.79%) and ICICI Bank (down 2.34%) boosted the indices.
The broader market outperformed. The S&P BSE Mid-Cap index gained 1.03% while the S&P BSE Small-Cap index advanced 0.4%.
The market breadth was positive. On the BSE, 1789 shares rose and 1418 shares fell. A total of 138 shares were unchanged.
COVID-19 Update:
Also Read
Total COVID-19 confirmed cases worldwide stood at 179,942,690 with 3,898,983 global deaths.
India reported 612,868 active cases of COVID-19 infection and 393,310 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
The Maharashtra government on 25 June 2021 issued new orders imposing additional COVID-19 restrictions after the Delta Plus variant of SARS-CoV-2 were detected in several districts of the state. As per the latest order, level five COVID-19 restrictions will continue to be in place.
Numbers to Watch:
In the foreign exchange market, the partially convertible rupee fell to 74.2 compared with its previous closing of 74.18.
MCX Gold futures for 5 August 2021 settlement rose 0.33% to Rs 47,026.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 91.76.
The yield on 10-year benchmark federal paper rose to 6.028% from its previous close of 6.012%.
In the commodities market, Brent crude for August 2021 settlement shed 31 cents to $75.25 a barrel.
Global Markets:
Most European shares declined as investors monitored the prospect of a steady economic rebound and fears of a tapering of monetary stimulus. Asian stocks rose across the board after U.S. shares hit a record on a bipartisan $579 billion U.S. infrastructure deal that stoked economic optimism.
Investors will be watching for a key U.S. inflation indicator on Friday when the Commerce Department releases the core personal consumption expenditures index.
In Europe, the U.K. is set to publish plans next month to lift travel restrictions for fully vaccinated people, except those at the highest Covid-19 risk level.
The Bank of England on Thursday forecast inflation surpassing 3% at its peak before cooling down, but insisted the spike above its 2% target would be transitory and kept its monetary stimulus at full throttle.
Germany's GFK consumer sentiment index, published before the bell Friday, showed consumer confidence in Europe's largest economy rising to (-) 0.3 points heading into July, up from (-) 6.9 the previous month.
U.S. stocks jumped to session highs, with the S&P 500 and Nasdaq reaching a record, Thursday after President Joe Biden declared that the White House struck an infrastructure deal with a bipartisan group of senators.
The infrastructure deal will include $579 billion in new spending, the White House said. Republicans have fought the president's proposal to hike the corporate tax rate to 28% from 21%.
Buzzing Indian Segment:
The Nifty IT index gained 0.56% to 29,210.55 after IT major Accenture Plc reported strong third-quarter results and raised business outlook for fiscal 2021. The index has added 3.37% in two days.
Oracle Financial Services Software (up 0.98%), Infosys (up 0.96%), Mphasis (up 0.88%), Tech Mahindra (up 0.88%), Mindtree (up 0.80%), Larsen & Toubro Infotech (up 0.73%), Coforge (up 0.61%), HCL Technologies (up 0.60%) and TCS (up 0.21%) advanced.
Accenture reported financial results for the third quarter of fiscal 2021, ended 31 May 2021, with revenues of $13.3 billion, an increase of 21% in U.S. dollars and 16% in local currency over the same period last year. Net income for the quarter was $1.57 billion, a 25% increase from $1.25 billion for the third quarter last year. For fiscal 2021, the company now expects revenue growth to be in the range of 10% to 11% in local currency, compared with 6.5% to 8.5% previously.
Stocks in Spotlight:
ONGC fell 0.94%. The PSU company's standalone net profit surged to Rs 4,762.86 crore in Q4 FY21 from Rs 836.86 crore in Q4 FY20. Net sales during the quarter declined by 1.2% to Rs 21,188.91 crore in Q4 FY21 over Q4 FY20. Net realisation increased by 18.4% to $58.05 a barrel in the March quarter, compared with $49.01 a barrel in the year-ago quarter.
Ashok Leyland jumped 4.36% after the commercial vehicles maker recorded net profit of Rs 241.77 crore in Q4 FY21 compared with net loss of Rs 57.32 crore in Q4 FY20. The flagship of Hinduja Group posted an 83% rise in net sales to Rs 6,972 crore in Q4 FY21 from Rs 3,814.16 crore in Q4 FY20. The company posted a profit before tax of Rs 313.94 crore in Q4 FY21 as against a pre tax loss of Rs 72.1 crore in Q4 FY20. During Q4 FY21, the company's medium and heavy commercial vehicles (MHCV) truck volumes surged 111% year on year which is better than the rate of growth of the industry. The company said its MHCV truck market share for Q4 FY21 has therefore improved to 28.9% vis-a-vis 27.6% in Q4 FY20.
Mishra Dhatu Nigam (MIDHANI) fell 0.97%. The company reported 86.1% jump in consolidated net profit to Rs 74.71 crore on 67.4% rise in net sales to Rs 340.01 crore in Q4 FY21 over Q4 FY20. The order book position as on 1 April 2021 stood at Rs 1353 crore.
Shilpa Medicare rose 3.17% after the company announced that it had received an in-principle approval from Defence Research & Development Organisation (DRDO) to manufacture and sale of 2-Deoxy-D-Glucose (2DG). 2DG has been given emergency approval by the Drug Controller General of India (DCGI) for COVID-19 patients in the country. Shilpa Medicare Limited is only the second company in India to have entered into similar arrangement with DRDO.
Indian Bank rose 0.64%. The bank's committee of directors on capital raising yesterday approved closure of qualified institutions placement (QIP) issue. The committee approved the closure of the issue subsequent to the receipt of application forms for an amount aggregating to Rs1650 crore from eligible qualified institutional buyers. The issue opened on 21 June 2021. The issue comprised of sale of 11,60,74,569 equity shares of the bank. In its placement document filed with the bourses, Indian Bank said that it intends to utilize the net proceeds towards augmenting our bank's Tier I Capital to meet the Basel III and to support growth plans and to enhance the business of the bank and for general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by the bank's board or its duly constituted committee.
Glenmark Pharmaceuticals gained 2.58%. The drug maker on Friday announced that it has received tentative approval from the United States Food & Drug Administration (USFDA) for Nintedanib Capsules. Nintedanib Capsules are generic version of Ofev Capsules of Boehringer Ingelheim Pharmaceuticals Inc. According to IQVIA sales data for the 12 month period ending April 2021, the Ofev Capsules market achieved annual sales of approximately $1.6 billion.
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