At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 360.32 points or 0.69% at 52,844.98. The Nifty 50 index gained 103.15 points or 0.66% at 15,825.
The broader market traded with gains. The S&P BSE Mid-Cap index was up 0.28% while the S&P BSE Small-Cap index rallied 0.88%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 2192 shares rose and 925 shares fell. A total of 164 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 183,738,373 with 3,976,162 global deaths.
India reported 482,071 active cases of COVID-19 infection and 402,728 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The seasonally adjusted India Services Business Activity Index (India Services PMI) stood at 41.2 in June 2021, highlighting a further contraction in output. Moreover, falling from 46.4 in May, the latest reading pointed to the fastest rate of reduction since July 2020. Monitored companies commonly indicated that the intensification of the COVID-19 crisis and tight restrictions curbed demand for services. Subdued demand conditions resulted in a second successive monthly drop in new business received by services firms. The pace of contraction was sharp and the quickest since July 2020.
Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit said, Given the current COVID-19 situation in India, it was expected that the service sector would take a hit. PMI data for June showed quicker declines in new business, output and employment that were sharp but much softer than those recorded in the first lockdown. "Uncertainty about the path of the pandemic restricted business confidence among services firms, who were generally neutral in their forecasts for output in the year ahead. The overall level of sentiment slipped to a ten-month low. "After losing growth momentum in recent months, the manufacturing industry dipped into contraction territory midway through 2021. As a result, there were faster reductions in private sector sales, output and jobs. "With India expanding its vaccine options and the government announcing ambitious plans to immunise the entire adult population by the end of the year, it is hoped that the pandemic can be brought under control and a sustainable economic recovery can begin."
Meanwhile, India's merchandise exports in June 2021 was $32.46 billion, an increase of 47.34% over $22.03 billion in June 2020 and an increase of 29.7% over $25.03 billion in June 2019. Merchandise imports in June 2021 was $41.86 billion, an increase of 96.33% over $21.32 billion in June 2020 and an increase of 2.03% over $41.03 billion in June 2019.
Buzzing Index:
The Nifty Realty index added 1.73% to 350.55. The index has risen 2.26% in two days.
Godrej Properties (up 3.19%), Phoenix Mills (up 2.91%), Sunteck Realty (up 1.66%), Sobha (up 1.34%), DLF (up 1.29%), Prestige Estates (up 1.12%), Brigade Enterprises (up 1.04%) and Indiabulls Real Estate (up 0.85%) climbed.
Stocks in Spotlight:
Yes Bank fell 0.15%. The private sector bank said loans & advances declined by 0.4% to Rs 163,914 crore as on 30 June 2021 from Rs 164,510 crore as on 30 June 2020. The loans & advances issued are lower by 1.8% as compared with Rs 166,893 crore as on 31 March 2021. The bank's deposits have increased by 39.1% to Rs 163,295 crore as on 30 June 2021 from Rs 117,360 crore as on 30 June 2020. The figures has risen by 0.2% from Rs 162,947 crore as on 31 March 2021.
HDFC Bank rose 1.20% to Rs 1,498.45 after the private lender's advances aggregated to approximately Rs 11,47,500 crore as of 30 June 2021, rising around 14.4% over Rs 10,03,300 crore as of 30 June 2020. The bank's advances grew around 1.3% as of 30 June 2021 from Rs 11,32,800 crore as of 31 March 2021. As per the Basel 2 segment classification among the bank's advances, the domestic retail loans as of 30 June 2021 grew by around 10.5% over 30 June 2020 and remained at a level similar to that as of 31 March 2021. The domestic wholesale loans as of 30 June 2021 grew by around 17% over 30 June 2020 and around 2% over 31 March 2021. Among loan categories, the retail loans grew by around 9% over 30 June 2020 and were lower by around 1% as compared to 31 March 2021. The commercial & rural banking loans grew by around 25% over 30 June 2020 and around 4% over 31 March 2021; and other wholesale loans grew by around 10.5% over 30 June 2020 and around 1.5% over 31 March 2021. Retail disbursements (including home loans sourced under the arrangement with Housing Development Finance Corporation), during the quarter ending 30 June 2021 were approximately Rs 43,600 crore, registering a growth of around 202% over Rs 14,400 crore disbursed during the corresponding period of the prior year, and around 30% lower than Rs 62,500 crore disbursed during the previous quarter. The bank's deposits aggregated to approximately Rs 13,46,000 crore as of 30 June 2021, recording a growth of around 13.2% over Rs 11,89,400 crore as of 30 June 2020 and a growth of around 0.8% over Rs 13,35,100 crore as of 31 March 2021. Retail deposits grew by around 16.5% over 30 June 2020 and around 3.5% over 31 March 2021. Wholesale deposits remained stable as compared to 30 June 2020, and were lower by around 10% as compared to 31 March 2021.
Global Markets:
Asian stocks were mixed on Monday after U.S. shares climbed further on speculation the Federal Reserve has scope to continue providing substantial stimulus support.
A private survey on China's services sector activity in June showed growth slowing sharply in June to a 14-month low. The Caixin/Markit services Purchasing Managers' Index for June, released Monday, came in at 50.3 a significant decline from May's reading of 55.1.
U.S. markets will remain shut on Monday in observance of Independence Day.
U.S. stocks advanced a second straight week to end Friday, with all three benchmark indexes at fresh all-time highs before heading into a long holiday weekend, after a monthly report employment was better than expected as the economy bounces back from the COVID pandemic.
The U.S. added 850,000 jobs in June, marking the biggest monthly gain since March, and jobs gains in May were raised slightly to 583,0000 from 559,000. Unemployment rose to 5.9% in June from 5.8% in May.
Outside of the jobs data, a reading on factory orders for May showed a 1.7% rise, after a revised 0.1% decline in the prior month, the Commerce Department said Friday. Factory orders have risen in 12 of the last 13 months.
Meanwhile, Organization of the Petroleum Exporting Countries and a Russia members of the group known as OPEC+ on Friday again delayed a decision about easing output curbs that have been in place to help stabilize crude prices. The oil decision comes as the group is trying to balance the after effects of the COVID pandemic on energy demand and concerns about the impact of variants of the coronavirus in parts of the world against expectations for higher demand as many economies emerge from lockdowns and stay-at-home protocols put in place to limit the pandemic's spread.
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