Key benchmark indices were trading with small losses in early afternoon trade. At 12:21 IST, the barometer index, the S&P BSE Sensex, was down 60.01 points or 0.15% at 38,859.09. The Nifty 50 index lost 14.90 points or 0.13% at 11,481.35.
In the broader market, the S&P BSE Mid-Cap index rose 0.42% while the S&P BSE Small-Cap index gained 0.23%.
The market breadth was negative. On the BSE, 1222 shares rose and 1390 shares fell. A total of 146 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 219.07 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 335.64 crore in the Indian equity market on 24 August, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 23,655,518 with 813,207 deaths. India reported 7,04,348 active cases of COVID-19 infection and 58,390 deaths while 24,04,585 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 0.71% to 19.09. The Nifty August 2020 futures were trading at 11,481.20, at a discount of 0.15 points compared with the spot at 11,481.35.
The Nifty option chain for 27 August 2020 expiry showed maximum Call OI of 52.20 lakh contracts at the 11,500 strike price. Maximum Put OI of 39.75 lakh contracts was seen at 11,000 strike price.
RBI Announces Special Open Market Operations (OMOs):
The Reserve Bank of India (RBI) on Tuesday said it has decided to conduct yet another round of simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of Rs 20,000 crore. These auctions will be done in two tranches of Rs 10,000 crore each. The auctions would be conducted on 27 August 2020 and 3 September 2020.
Separately, RBI in its annual report on Tuesday said Indian government consumption will continue to support current economic demand while private consumption will likely lead the recovery when it takes hold after the COVID-19 outbreak eases.
"The upticks that became visible in May and June after the lockdown was eased in several parts of the country, appear to have lost strength in July and August, mainly due to reimposition or stricter imposition of lockdowns, suggesting that contraction in economic activity will likely prolong into Q2," the RBI said.
More protracted spread of the coronavirus pandemic, deviations of the monsoon from the predicted normal rains and global financial market volatility are key downside risks to growth, the central bank said.
Meanwhile, the balance sheet size of RBI increased by 30.02% as on 30 June 2020. The gross total income for the year 2019-20 amounted to Rs 1,49,672 crore as compared to Rs 1,93,036 crore in 2018-19. The expenditure of RBI for the year 2019-20 is Rs 92,540 crore which includes a risk provision of Rs 73,615 crore towards contingency fund as compared to an expenditure of Rs 17,045 crore in 2018-19. The year ended with an overall surplus of Rs 57,128 crore.
Buzzing Index:
The Nifty Metal index shed 0.77% to 2,506.55. The index had gained 0.10% yesterday.
Hindustan Copper (down 2.32%), Welspun Corp (down 1.96%), SAIL (down 1.91%), National Aluminum Co. (down 1.86%), Jindal Steel & Power (down 1.84%), NMDC (down 1.25%) and Tata Steel (down 1.05%) were the top index losers.
Stocks in Spotlight:
Sun Pharmaceutical Industries shed 0.82% to Rs 529. The drug major on Tuesday said its arm DUSA Pharmaceuticals has reached a resolution with the US Department of Justice (DOJ) concerning the promotion of Levulan Kerastick and BLU-U on payment of $20.75 million.
Alembic Pharmaceutical lost 1.08% to Rs 997.20. The drug maker said that its joint venture Aleor Dermaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Desonide lotion. Desonide Lotion is low to medium potency corticosteroids indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid responsive dermatoses. According to IQVIA, Desonide Lotion has an estimated market size of $7 million for twelve months ending June 2020.
Globus Spirits hit an upper circuit of 5% at Rs 169.25 after the company's consolidated net profit surged 169.3% to Rs 18.69 crore on 22.3% drop in net sales to Rs 230.09 crore in Q1 June 2020 over Q1 June 2019.
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