Key barometers were trading near the day's high in mid-afternoon trade. At 14:20, the barometer index, the S&P BSE Sensex jumped 520.58 points or 1.39% at 37,939.57. The Nifty 50 index gained 142.30 points or 1.29% at 11,164.50.
Global shares advanced as European Union (EU) leaders agreed on a 750 billion euros package aimed at funding post-pandemic relief efforts in the region.
Hopes for a coronavirus vaccine also lifted risk appetite. The first set of results from early-stage clinical trials of the Oxford University Covid-19 vaccine candidate show the vaccine is safe and induces an immune reaction.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index shed 0.06% while the S&P BSE Small-Cap index rose 0.31%.
The market breadth was positive. On the BSE, 1358 shares rose and 1232 shares fell. A total of 162 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,709.97 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,521.99 crore in the Indian equity market on 20 July, provisional data showed.
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Buzzing Index:
The Nifty PSU Bank index rose 1.92% to 1,469.70. The index has added 4.9% in four sessions.
Bank of Maharashtra (up 11.21%), CBI (up 10.09%), UCO Bank (up 6.99%), Bank of India (up 6.05%), Punjab & Sind Bank (up 5%) and Indian Overseas Bank (up 4.76%) were the top index gainers.
Meanwhile, Jammu and Kashmir Bank (down 1.75%) Union Bank of India (up 0.16%) and Punjab National Bank (up 0.29%) lagged behind.
The media reported that India is looking to privatise more than half of its state-owned banks to reduce the number of government-owned lenders to just five as part of an overhaul of the banking industry. At present, India has 12 state-owned banks and the idea is to have 4-5 government owned banks, reports further added.
Stocks in Spotlight:
Majesco hit an upper circuit of 5% at Rs 401.15 after the company signed a pact to sell its US subsidiary to private equity firm Thoma Bravo. The deal, which is expected to close before end of 2020, values the US unit at $594 million. Following the closing of the transaction, the unit will operate as a privately-held company.
Majesco India will get $420.66 million (about Rs 3,150 crore) from this deal compared to the total investments made by the company in US subsidiary of $68.67 million, to date.
The company's board decided that the proceeds from the disposal of the investment in the US subsidiary (net of costs) will be distributed to the shareholders of the company in a tax efficient manner as expeditiously as possible.
Jenburkt Pharmaceuticals surged 6.65% to Rs 424 after the company announced its plans to launch Favipiravir-200 mg tablets, recommended for the treatment of mild to moderate COVID-19 patients.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 5.831% compared with previous closing of 5.799% in the previous trading session.
In the foreign exchange market, the partially convertible rupee edged lower to 74.7475 compared with its previous closing 74.91.
In the commodities market, Brent crude for September 2020 settlement rose 63 cents to $43.91 a barrel. The contract lost 0.33% or 14 cents to end at $43.28 in the previous trading session.
MCX Gold futures for 5 August 2020 settlement gained 0.34% to Rs 49,195.
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