Key indices are trading firm in early trade on buying demand in index pivotals after yesterday's steep slide. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 356.84 points or 0.92% at 38,985.13. The Nifty 50 index was up 77.60 points or 0.68% at 11,465.10.
The S&P BSE Mid-Cap index was up 1.35%. The S&P BSE Small-Cap index was up 0.63%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1013 shares rose and 699 shares fell. A total of 82 shares were unchanged.
GDP data:
India's GDP contracted 23.9% in Q1 June 2020 compared to the same period last year, showed official data released by the National Statistics Office (NSO) on Monday. This was mainly on account of limited economic activity in the country during the quarter amid lockdowns to control the spread of the coronavirus pandemic. The economy expanded 3.1% year-on-year in the quarter ended March 2020.
Cues to watch:
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The Supreme Court is all set to deliver its verdict in the matter pertaining to the repayment of adjusted gross revenue (AGR) dues by telecom companies today, 1 September 2020. A bench led by Justice Arun Mishra will deliver the judgement.
Stocks in news:
Larsen & Toubro (L&T) rose 1.61%. L&T announced the closure of the strategic divestment of its Electrical & Automation (L&T E&A) business to Schneider Electric, a global player in energy management and automation. The significant and complex divestment deal, announced in May 2018 has been completed after receiving the requisite regulatory approvals and fulfilment of necessary conditions.
Mahindra & Mahindra (M&M) gained 2.06%. M&M said that in view of the COVID-19 pandemic, the completion of sale/disposal of Neo Solren Private Limited (NSPL) is expected by September 2020.
Biocon advanced 3.08%. Biocon's subsidiary Biocon Biologics India announced the U.S. launch of Semglee (insulin glargine injection) in vial and pre-filled pen presentations, approved to help control high blood sugar in adult and pediatric patients with type 1 diabetes and adults with type 2 diabetes.
Bharat Dynamics dropped 3.28% after the company reported net loss of Rs 78.04 crore in Q1 June 2020 as against net profit of Rs 65.55 crore in Q1 June 2019. Total income declined 87.89% to Rs 62.63 crore.
Zensar Technologies rose 2.55%. Zensar Technologies announced that it has been granted a US patent for its direct conversation platform which is ZenVerse. The patent, granted by the US Patent and Trademark office (USPTO), is on the idea of ZenVerse which is designed to be a direct platform or channel for the entire organization to interact with the organization's leadership including CEO, CXOs.
BEML rose 2.23%. BEML has bagged a order from Ministry of Defence for supply of 330 High Mobility Vehicles, for Pinaka Project at a value of Rs. 842 crore. Pinaka is a multi-barrel rocket launcher developed indigenously for the Indian Army and produced in India by involving Public Sector and Private Sector Defence Industries.
Global Markets:
Overseas, Asian stocks are trading mixed Tuesday as a private survey showed Chinese manufacturing activity in August expanding at its fastest pace in nearly 10 years.
The Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 53.1 for August, compared to 52.8 in July. PMI readings above 50 indicate expansion, while those below that signal contraction.
Japan's factory activity contracted at the slowest pace in six months in August. Tuesday's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 47.2 in August from 45.2 in July. It marked the slowest contraction since February, and also eclipsed a preliminary reading of 46.6.
South Korea's manufacturing activity shrank at the slowest pace in six months in August. The IHS Markit purchasing managers' index (PMI) rose to 48.5 in August from 46.9 in July.
In US, stocks were mixed on Monday. Declines in bank stocks pressured both the Dow and S&P 500. The Dow slid 223.82 points, or 0.8%, to 28,430.05 and the S&P 500 dipped 0.2% to close at 3,500.31. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo were all down more than 2%, following Treasury yields lower.
The Nasdaq Composite outperformed with a 0.7% gain and ended the day at 11,775.46. The Nasdaq got a lift after two big stock splits took effect Monday. Apple shares gained 3.4% as a 4-for-1 split took effect. Tesla shares added 12.6% following its 5-for-1 split.
Back home, key domestic benchmarks ended sharply lower on Monday, snapping a six-day rising streak. Rising COVID-19 cases, Sebi's new margin rule and India-China geopolitical tension weighed on stocks. The barometer index, the S&P BSE Sensex, dropped 839.02 points or 2.13% at 38,628.29. The Nifty 50 index fell 260.10 points or 2.23% at 11,387.50. The index jumped 3% in the the past six sessions.
Foreign portfolio investors (FPIs) sold shares worth Rs 3,395.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 680.88 crore in the Indian equity market on 31 August, provisional data showed.
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