Barometers trimmed gains in mid-afternoon trade. The undertone of the market continued to be strong amid positive global cues. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 484.53 points or 1.35% at 36,505.77. The Nifty 50 index added 159.45 points or 1.5% at 10,766.80.
Investors' risk appetite also strengthened after the media reported that India and China have begun a slight disengagement from the face-off sites in the Galwan Valley and Gogra-Hot Springs areas of eastern Ladakh. According to the reports, the Chinese People's Liberation Army (PLA) has possibly moved back by 1 to 1.5 km from the friction site in Galwan Valley. The PLA was seen removing tents and structures at Patrolling Point 14, reports added.
As per the proposed disengagement plan, the rival troops will gradually move back distances of 2.5 to 3 km in phases to de-escalate tensions at the face-off sites, which will later be followed by de-induction of huge military build-ups along the LAC.
In the broader market, the S&P BSE Mid-Cap index rose 0.98% while the S&P BSE Small-Cap index gained 1.2%. Both these indices trailed the Sensex.
The market breadth favoured the buyers as 1,595 shares rose and 1102 shares fell. A total of 175 shares were unchanged on the BSE. In Nifty 50 index, 39 stocks advanced while 11 stocks declined.
COVID-19 Update:
India reported 2,53,287 active cases of COVID-19 infection and 19,693 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,450,247 with 534,273 deaths so far, according to data from Johns Hopkins University.
Buzzing Index:
The Nifty Pharma index declined 0.69% to 9,894.25 and was the only loser in NSE Sectoral indices.
Torrent Pharmaceutical (down 2.06%), Lupin (down 1.51%), Divi's Laboratories (down 1.2%), Cadila Healthcare (down 1.08%), Alkem Laboratories (down 0.93%), Aurobindo Pharma (down 0.88%), Dr. Reddy's Laboratories (down 0.75%) and Cipla (down 0.61%) were top losers in pharmaceutical segment.
Stocks in Spotlight:
Indian Energy Exchange (IEX) gained 2.02% after the electricity market at IEX witnessed a total trade of 4790 MU in June 2020, recording a 5% year-on-year increase. The total electricity market trade rose in June despite the national peak demand registering a 10% YoY decline during the month. The Day-Ahead Market (DAM) traded 4174 MU and witnessed high sell side liquidity in the month, with total sell bids at 10164 MU being close to 1.5X the buy bids at 4661 MU. The average market clearing price during the month was at Rs 2.35 per unit registered a whopping 29% year on year decline over a price of Rs 3.32 in June 2019.
Prism Johnson hit an upper circuit of 10% to Rs 48.50 after the company said it continues to tightly manage its cash flows, keeping enough liquidity in hand and making sure that working capital limits remain majorly undrawn. The firm said on Friday (4 July) that the liquid investment balance at the end of Q1 June 2020 was more than Rs 470 crore. During Q1, the net debt was reduced by about Rs 275 crore at standalone level. Certain loan installment which were due in later part of FY 20-21 and FY 21-22 were prepaid during the last quarter. The company added that it continues to explore its strategy of pre-payment/refinancing of loans well in advance. These measures would enable it to optimize interest cost and take care of loan obligations upto March 2022.
eClerx Services rose 1.91% after the company said its board approved a proposal to buyback shares worth up to Rs 109.50 crore at a price not exceeding Rs 550 per share. The buy-back price is 15.47% premium to the Friday's close of Rs 476.30 on BSE. At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 19,90,909 equity shares, subject to not exceeding 25% of the total paid up equity capital of the company.
Steel Strips Wheels (SSWL) rose 1.34% to Rs 438 after the company said it bagged firm exports orders for over 119,000 wheels for US caravan trailer market to be executed in August from its Chennai plant. This is the largest monthly order from a single customer, the company said. Inflow of more orders are expected to come from various other customers as the market gains stability. Production at the Chennai steel wheel plant will further ramp up with above mentioned developments, SSWL added.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 5.834% compared with previous closing of 5.845% in the previous trading session.
In the foreign exchange market, the partially convertible rupee edged lower to 74.695 compared with its previous closing 74.66.
In the commodities market, Brent crude for September 2020 settlement rose 23 cents to $43.43 a barrel.
MCX Gold futures for 5 August 2020 settlement fell 0.09% to Rs 48,004.
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