As per provisional closing data, the barometer index, the S&P BSE Sensex rallied 477.54 points or 1.26% at 38,528.32. The Nifty 50 index added 142.5 points or 1.27% at 11,389.40.
In the broader market, the S&P BSE Mid-Cap index surged 1.18% while the S&P BSE Small-Cap index added 1.32%.
Buyers outnumbered sellers. On the BSE, 1883 shares rose and 906 shares fell. A total of 142 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 332.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 717.62 crore in the Indian equity market on 17 August, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 21,881,858 with 7,74,053 deaths. India reported 6,73,166 active cases of COVID-19 infection and 51,797 deaths while 19,77,779 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
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Economy:
Ministry of Finance said that the Partial Credit Guarantee Scheme (PCGS) 2.0 has been extended with greater flexibility to respond to emerging demands. Under PCGS 2.0, PSBs have approved purchase of Bonds/ CPs rated AA/AA- issued by 28 entities and Bonds/CPs rated below AA- issued by 62 entities, amounting to Rs. 21,262 crore overall. Government has now decided to modify PCGS 2.0 for purchase of Bonds/CPs. Additional 3 months have been granted to build up the portfolio.
Stocks in Spotlight:
Bandhan Bank was up 0.24% after the Reserve Bank of India (RBI) removed regulatory restrictions after bank complied with promoter shareholding norms. As per the restriction imposed by RBI in September 2018, Bandhan Bank was required to take prior approval from the central bank for opening of a new branch. The remuneration of the MD & CEO of the bank was also frozen. The restriction was imposed as the bank's promoters failed to comply with licensing requirements of reducing their stake in the bank.
Vedanta fell 1.33%. The media reported that the Madras high court on Tuesday rejected Vedanta Resources Plc's petition to challenge the March 2018 closure order by the Tamil Nadu government of Sterlite Copper smelter plant in Tuticorin, about 610 km from Chennai, in March 2018. The petition was reportedly moved by the company in February last year, after the Supreme Court granted Vedanta liberty to move the High Court in this regard. While pronouncing the judgment this morning, the Court reportedly informed that the verdict would have been out by 12 March, if it were not for the COVID-19 pandemic.
Steel Strips Wheels (SSWL) gained 3% after the company bagged export orders for over 110,000 wheels worth over Rs 13 crore for US caravan trailer market. The order is to be executed in September and October and would be supplied from the company's Chennai plant. "Inflow of more orders is expected to come from various other customers as the market gains stability," the company said in a BSE filing.
Petronet LNG gained 1.08%. The company posted 11.1% decline in consolidated net profit to Rs 499.79 crore in Q1 June 2020 as against Rs 561.94 crore in Q1 June 2019. Consolidated revenue from operations stood at Rs 4883.57 crore in Q1 June 2020, a decline of 43.3% over Rs 8,613.44 crore in Q1 June 2019. Petronet LNG posted a profit before tax of Rs 676.16 crore in quarter ending June 2020, nearly 20% lower from Rs 839.59 crore in quarter ending June 2019. Total tax expense declined 36.4% to Rs 176.37 crore in Q1 June 2020 over Q1 June 2019. The operations of the company were not materially interrupted during the lockdown due to outbreak of COVID-19, as natural gas is declared as one of the essential commodities by the Government of India. Petronet added that it has healthy liquidity position and there is no uncertainty in the going concern of the company.
KNR Constructions jumped 4.8% after the company's consolidated net profit rose 8.8% to Rs 46.68 crore on 1.5% fall in revenue from operations to Rs 522.52 crore in Q1 FY21 over Q1 FY20. Total expense declined by 4.6% to Rs 470.22 crore in the June quarter compared with the same period last year. Profit before tax in Q1 June 2020 was at Rs 59.28 crore, up by 5% from Rs 56.44 crore in Q1 June 2019. Current tax expense increased by 57% year-on-year (YoY) to Rs 22.06 crore during the quarter.
Fertilisers & Chemicals Travancore (FACT) rose 1.62% after the company reported consolidated net loss of Rs 17.56 crore in Q1 June 2020, lower than net loss of Rs 80.24 crore in Q1 June 2019. Consolidated revenue from operations soared 57.11% to Rs 551.80 crore in Q1 June 2020 over Q1 June 2019. The company said that there was no material impact on the financial results of the company on account of COVID-19 pandemic.
Global Markets:
European shares declined while Asian markets were mixed on Tuesday as investors continued to watch developments in US-China tensions.
South Korea's KOSPI tumbled 2.46% after a South Korean news agency reported that concerns are rising over a potential "massive outbreak" of coronavirus cases. The country reportedly confirmed 246 more Covid-19 cases as of Tuesday midnight local time, according to the daily update from the Korea Centers for Disease Control and Prevention.
US President Donald Trump's administration announced Monday a further tightening of restrictions on Huawei, aimed at limiting the Chinese telecommunications giant's access to commercially available chips.
Meanwhile, the media reported that Microsoft is being currently seen as the frontrunner in the race to buy TikTok's operations in the US, Canada, Australia and New Zealand assets. But that changed late Monday after it emerged that Larry Ellison's Oracle was also in talks to acquire those units, the reports added. Ellison is a known supporter of the president.
In US, the S&P 500 rose slightly on Monday to start the week, but fell short of a record closing high once again amid declining trading volumes and lingering concerns over a US coronavirus stimulus bill and simmering US-China tensions. The Nasdaq Composite hit an all-time high. The Dow Jones index, however, was weighed down by losses to financial and industrial stocks.
Both Democrats and Republicans have indicated they are at a stalemate over a new stimulus package. Democrats have proposed to send more than $900 billion to states and municipalities in one bill. A counteroffer from the GOP did not include any additional aid for states and local governments.
The National Associated of Home Builders noted that its housing market index climbed to 78 in August, up from 72 in July. The New York Federal Reserve Bank's Empire State Manufacturing index fell to 3.7 in August, down from 17.2 in the previous month.
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