Domestic equity barometers firmed up further and hit the day's high in mid-morning trade. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 308.66 points or 0.79% at 39,422.13. The Nifty 50 index added 82.60 points or 0.71% at 11,641.85.
In the broader market, the S&P BSE Mid-Cap index rose 0.76% while the S&P BSE Small-Cap index gained 0.44%.
The market breadth was positive. On the BSE, 1393 shares rose and 1143 shares fell. A total of 145 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,164.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 809.27 crore in the Indian equity market on 27 August, provisional data showed.
Buzzing Index:
The Nifty Metal index added 0.77% to 2,550.55, extending gains for third day in a row. The index has added 1.72% in three sessions.
Among the index constituents, MOIL (up 3.34%), National Aluminum Co. (up 1.48%), Jindal Steel & Power (up 1.46%) and Tata Steel (up 1.29%) were the top index gainers.
JSW Steel (down 1.66%), Ratnamani Metals Tubes (down 1.24%), Hindustan Zinc (down 0.70%) and APL Apollo Tubes (down 0.66%) were the top index laggards.
NMDC rose 13.13%. The board of directors of the company at their meeting held on 27 August 2020, have accorded in-principle approval to the proposal to demerge its NMDC Iron & Steel Plant (NISP) at Nagarnar in Chhattisgarh, the company said in an exchange filing.
NMDC reported 54.67% slide in net profit to Rs 531.01 crore on 40.67% fall in total income to Rs 2,009.27 crore in Q1 June 2020 over Q1 June 2019. NMDC said the COVID-19 had an impact on the operations of the company during the current quarter ended 30 June 2020. There has been a loss of around 18.23 lakh tonne of production and 23.94 lakh tonne of sales of iron ore.
Stocks in Spotlight:
Yes Bank gained 2.11% to Rs 15.02 after credit ratings agency CRISIL upgraded its rating on bank's certificates of deposit (CD) to 'CRISIL A2+'. The ratings agency said the upgrade in the short term rating reflects improvement in the funding and liquidity profile of the bank, with gradual increase in its deposit base as well as sizeable capital raised recently. With this, Yes Bank has repaid Rs 35,000 crore of the Rs 50,000 crore special liquidity facility availed from the Reserve Bank of India (RBI) in March 2020, which is ahead of the earlier plan. Further, the bank's liquidity coverage ratio (LCR) has improved in recent months.
Steel Strip Wheels gained 3.5% to Rs 492. The company has bagged bagged export orders of nearly 37,000 wheels for EU caravan trailer market worth over 253,000 euros. The company said the order is to be executed in November & December from its Chennai plant.
Global Markets:
Shares in Asian were trading mixed on Friday as investors react to recent developments from the US Federal Reserve.
Japanese stocks tumbled following a report from Japanese broadcaster NHK that the country's Prime Minister, Shinzo Abe, is set to resign due to "health issues." The Nikkei 225 dropped 1.77% while the Topix index shed 1.14%.
In US, the S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve's new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.
Setting out the central bank's aggressive new strategy at a virtual Jackson Hole symposium, Fed chief Jerome Powell said it would offset below-2% periods with higher inflation "for some time," and ensure employment doesn't fall short of its maximum level. The Fed also adjusted its view of full employment to allow gains in the labor market to run more broadly. That indicated that the central bank will be less inclined to raise interest rates when the unemployment rate falls, as long as inflation does not creep up as well.
Data on Thursday showed weekly jobless claims hovered around 1 million last week, suggesting the labor market recovery was stalling.
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