Key indices are trading on strong note in early trade on positive Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 433.68 points or 1.09% at 40,312.63. The Nifty 50 index was up 127.20 points or 1.08% at 11,866.05. The Sensex spurted above the psychological 40,000 level. Gains in IT stocks boosted the market.
The S&P BSE Mid-Cap index was up 0.63%. The S&P BSE Small-Cap index was up 0.44%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1091 shares rose and 513 shares fell. A total of 74 shares were unchanged.
Cues to watch:
The Reserve Bank of India's meeting of the Monetary Policy Committee (MPC) began on 7 October 2020 and ends to 9 October 2020. The government on Monday has named Shashanka Bhide, Ashima Goyal and Jayanth Varma as its nominees on the central bank's monetary policy committee (MPC). The new members have been appointed for a four-year term.
The Reserve Bank of India was forced to delay the bi-monthly committee meeting set to take place from 29 September to 1 October, as it required at least four MPC members to proceed and the Indian government had failed to name replacements for three previous appointees whose tenure ended in September.
Stocks in news:
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TCS jumped 4.84% to Rs 2,870 after the company's board approved a proposal to buyback up to 5.33 crore equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42% of the total paid-up equity share capital, at Rs 3,000 per equity share.
The IT major reported a 7.05% decline in consolidated net profit to Rs 7,475 crore on a 2.97% increase in revenue to Rs 40,135 crore in Q2 September 2020 over Q2 September 2019. Sequentially, the consolidated net profit grew 6.6% and revenue increased 4.73% in Q2 September 2020 over Q1 June 2020.
The company set aside Rs 1,218 crore under exceptional items related to a US lawsuit. The exceptional item relates to the compensatory damages TCS has to pay with regard to the intellectual property lawsuit filed by Epic Systems. In October 2014, EPIC had filed a legal claim against TCS in the court of Western District Madison, Wisconsin alleging infringement of Epic's proprietary information.
Wipro surged 5.43% after the company informed that its board of directors will consider a proposal of buyback of equity shares of the company at its meeting scheduled to be held on 13 October 2020.
Infosys advanced 3.78%. Infosys Public Services, a US-based subsidiary of Infosys, unveiled the Infosys Health Insights Platform (IHIP) - an automated data science platform for public health agencies developed in collaboration with Amazon Web Services (AWS), Couchbase, and Knowi. The new platform is part of the Infosys Cobalt's growing portfolio of 14,000 cloud assets. Built on AWS, this new platform will help agencies scale their analytics capabilities and turn massive amounts of data into valuable insights and actionable recommendations.
Hero MotoCorp rose 0.55%. Hero MotoCorp yesterday introduced the new Maestro Edge 125 Stealth scooter. The new Maestro Edge 125 Stealth has a fast and ferocious stance, further enhanced by the fresh contemporary design aesthetics.
Nilkamal slipped 0.16%. CARE Ratings has reviewed credit ratings of the Nilkamal and re-affirmed for long term bank facilities at AA/Stable and short term bank facilities at A1+.
Shriram City Union Finance dropped 2.11%. CARE Ratings has reaffirmed its ratings in respect of Commercial Papers of Shriram City Union Finance, revised its ratings for fixed deposits and Non-Convertible Debentures and outlook on the fixed deposits and Non-Convertible Debentures of the company to 'Stable' from 'Negative'.
RBL Bank rose 0.71%. RBL Bank said total deposits rose 3% to Rs 64,529 crore in Q2 September 2020 over Q2 September 2019.
Global Markets:
Overseas, Asian stocks are trading mostly higher on Thursday following an overnight surge on Wall Street. Investors likely continued watching for developments on U.S. stimulus support, after President Donald Trump tweeted support for aid to airlines and other stimulus measures.
In US, stocks rose sharply on Wednesday after President Donald Trump tweeted support for aid to airlines and other stimulus measures, stoking hope that a smaller aid package could be passed by lawmakers. Meanwhile, on the virus treatment front, Eli Lilly said it's seeking clearance from the U.S. Food and Drug Administration for emergency authorization of its Covid-19 antibody treatment.
In a series of tweets Tuesday night, Trump urged Congress to approve airline payroll support, saying that money and aid for small business could be paid for with unused funds from the previous stimulus. Trump also pushed for another round of $1,200 stimulus checks for Americans.
The Federal Reserve could ramp up its bond purchasing program to push down further on borrowing costs, but for now the U.S. economy's most pressing need is for a new round of government spending, U.S. central bankers said on Wednesday.
Many members of the Federal Open Market Committee said their economic outlook assumed additional fiscal support, according to U.S. Federal Reserve minutes released on Wednesday. Central bank officials believe if aid packages are too small or too late, the economy is in for a weak recovery.
Back home, the benchmark indices advanced for the fifth trading session on Wednesday, led by index major Reliance Industries. Positive Asian cues and decent Q2 business update from domestic companies also supported buying. Auto and IT shares were in demand while metal and pharma shares witnessed selling. The barometer index, the S&P BSE Sensex, jumped 304.38 points or 0.77% at 39,878.95. The Nifty 50 index rallied 76.45 points or 0.66% at 11,738.85.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,093.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,129.49 crore in the Indian equity market on 7 October, provisional data showed.
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