At 13:24 IST, the barometer index, the S&P BSE Sensex, was up 13.38 points or 0.03% at 38,857.40. The Nifty 50 index added 18.7 points or 0.16% at 11,490.55.
In the broader market, the S&P BSE Mid-Cap index rose 0.41% while the S&P BSE Small-Cap index gained 0.72%. Both these indices outperformed the benchmark Sensex.
The market breadth was positive. On the BSE, 1574 shares rose and 1098 shares fell. A total of 155 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,481.20 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 172.97 crore in the Indian equity market on 25 August, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 23,901,014 with 819,609 deaths. India reported 7,07,267 active cases of COVID-19 infection and 59,449 deaths while 24,67,758 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
According to the India Meteorological Department (IMD), monsoon rains, which picked up pace in August, are likely to be heavy for the rest of the month, potentially benefiting summer crops such as rice, corn and cotton. After a patchy spell in the last two weeks of July, India received 24% above average rains so far in August, and the trend is likely to continue at least through this month.
Of the 36 meteorological subdivisions in India, monsoon rains have been either average or above average in 32 so far this year. India, where nearly half of the country's farmland lacks irrigation, has received 7% above average rains since June 1. Farmers have planted 106.3 million hectares with summer crops so far, up 8.5% from last year as heavy monsoon rains in June spurred sowing in the world's leading producer of farm goods.
Earning Today:
Indraprastha Gas (up 0.06%), Gillette India (up 1.95%), Gujarat Mineral Development Corporation (up 3.5%), Dolat Investments (up 1.05%), NACL Industries (up 1.69%) and Sharda Motor Industries (up 2.37%) are among companies which will disclose their June quarter results on Wednesday.
Stocks in Spotlight:
State Bank of India up 0.75%. The credit ratings agency Moody's Investors Service affirmed the banks's long-term local and foreign currency deposit ratings at Baa3. At the same time, the ratings agency has downgraded SBI's Baseline Credit Assessment (BCA) and adjusted BCA to ba2 from ba1. It has maintained SBI's rating outlook, where applicable, as negative, in line with the outlook on India's sovereign rating.
Can Fin Homes jumped 2.46% after the housing finance company posted a 15% rise in net profit to Rs 93.16 crore on 8% increase in total income to Rs 522.50 crore in Q1 June 2020 over Q1 June 2019. The housing financier, in accordance with the RBI guidelines relating to COVID-19 Regulatory Package, offered moratorium on the payment of installments falling due between 1 March 2020 to 31 August 2020 to eligible borrowers. As on 30 June 2020, the company said it holds a provision of Rs 72.89 crore, which is more than the requirement as per RBI norms.
Affle (India) hit an upper circuit of 5% at Rs 2943.35. The company announced that it has won the contract from the Singapore Government to build a 'digital & cloud-based commuter survey platform' for Land Transport Authority (LTA). The total value of the contract is over $1 million.
Va Tech Wabag dropped 3.5%. The company has approved a preferential issue of 75 lakh shares aggregating to Rs 120 crore from three high net individuals (HNIs). The HNIs are: Rekha Rakesh Jhunjhunwala (purchased 50 lakh shares for a total of Rs 80 crore), Basera Home Finance (purchased 15 lakh shares for Rs 24 crore) and Sushma Anand Jain & Anand Jaikumar Jain (Joint Holding) (purchased 10 lakh shares worth Rs 16 crore).
Acrysil hit an upper circuit limit of 5% at Rs 128.35. Acrysil, largest manufacturer of 'quartz kitchen sinks' in India and Asia, has announced that the company is expanding its production capacity of its quartz kitchen sinks by 20% through brownfield expansion at its Bhavnagar plant in Gujarat. The proposed capex will increase the manufacturing capability of quartz kitchen sinks by about 1,00,000 units per annum to 6,00,000 units p.a. The purpose of the expansion is to meet the increasing demand from the export market.
Global Markets:
European indices were mixed while Asian stocks were trading mildly lower on Wednesday amid concerns over global economic outlook despite optimism over US-China trade talks.
The Wall Street finished session higher on Tuesday, 25 August 2020, with the Nasdaq and the S&P 500 hit all-time closing highs, as investors cheered optimism about a potential treatment for coronavirus and trade talks among U.S. and Chinese officials following weeks of escalating tensions between the world's two largest economies.
However, market gains capped as investors turned cautious ahead to Federal Reserve Chair Jerome Powell's speech to the Jackson Hole symposium on Thursday.
US Consumer confidence fell in August to a new pandemic low after a fresh rash of coronavirus cases during the summer. The index of consumer confidence sank to 84.8 (vs 93 forecast) this month from a revised 91.7 in July.
Further, sales of new single-family houses in the US rose 14% between June and July to a seasonally-adjusted annual rate of 901,000. Compared with a year ago, new home sales were up 36%.
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