At 13:28 IST, the S&P BSE Sensex, gained 222.23 points or 0.54% at 41,364.89. The Nifty 50 index was up 66.70 points or 0.55% at 12,155.85.
The broader market outperformed key benchmarks. The S&P BSE Mid-Cap index was up 0.95% while the S&P BSE Small-Cap index was up 0.56%.
The market breadth was positive. On the BSE, 1351 shares rose and 943 shares fell. A total of 142 shares were unchanged. In Nifty 50 index, 30 stocks advanced while 20 stocks declined.
RBI Policy:
On the basis of an assessment of the current and evolving macroeconomic situation, MPC at its meeting today (6 February 2020) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15%. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90% and the marginal standing facility (MSF) rate and the Bank Rate at 5.40%. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The CPI inflation projection is revised upwards to 6.5% for Q4 March 2020; 5.4-5.0% for first half of fiscal year ending March 2021 (H1:2020-21); and 3.2% for Q3 December 2020, with risks broadly balanced.
GDP growth for 2020-21 is projected at 6%; in the range of 5.5-6% in H1:2020-21 and 6.2% in Q3 December 2020.
The next meeting of the MPC is scheduled during March 31, April 1 and 3, 2020.
Buzzing Index:
Shares of real estate companies were in demand after RBI allowed by another year the extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters.
Parsvnath Developers (up 2.48%), D B Realty (up 2.43%), Indiabulls Real Estate (up 1.38%), Sobha (up 1.37%), Anant Raj (up 1.33%), Mahindra Lifespace Developers (up 1.13%), Phoenix Mills (up 0.96%), Oberoi Realty (up 0.91%), Godrej Properties (up 0.68%) and Sunteck Realty (up 0.27%) advanced.
"It has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. This would complement the initiatives taken by the Government of India in the real estate sector," RBI said in a statement.
Stocks in Spotlight:
Among Nifty companies, Eicher Motors (up 0.06%), Hero MotoCorp (up 1.05%) and Sun Pharmaceutical Industries (up 0.67%) will announce their Q3 2019 earnings today.
Zee Entertainment Enterprises (up 4.74%), IndusInd Bank (up 4.14%), State Bank of India (up 3.42%), Yes Bank (up 2.93%) and Bharti Airtel (up 2.64%) advanced.
Tata Motors (down 2.91%), Titan Company (down 1.33%), Infosys (down 1.32%), Mahindra & Mahindra (down 0.94%) and Hindalco Industries (down 0.94%) declined.
Cipla fell 1.19% to Rs 441.50. On a consolidated basis, The company's net profit gained 5.66% to Rs 351.03 crore in Q3 December 2019 (Q3 FY20) as against Rs 332.20 crore reported in Q3 December 2018 (Q3 FY19). Net sales advanced 8.40% year-on-year (YoY) to Rs 4,234.55 crore in Q3 FY20. Profit before Tax jumped 12.81% to Rs 506.40 crore in Q3 FY20 as compared to Rs 448.88 crore posted in Q3 FY19. Total tax expenses, for the quarter, jumped 21.59% to Rs 152.82 crore YoY. EBITDA grew 5.27% to Rs 758 crore in Q3 FY20 from Rs 720 crore in Q3 FY19. The EBITDA margin stood at 17.3% in Q3 FY20 as against 18% in Q3 FY19. The profit margin was at 8% in Q3 FY20 as compared to 8.3% in Q3 FY19.
Global Markets:
European shares opened in the green while Asian stocks continued to trade higher on Thursday after US S&P 500 hit a record peak following encouraging economic data, while investors keep a wary eye on the impact of the coronavirus outbreak.
In US, stocks closed sharply higher on Wednesday for the third consecutive session as Wall Street continued its rebound from a selloff sparked in part by the outbreak of an Asian virus that has killed hundreds and infected tens of thousands.
Bullish sentiment was seen driven by hopes that stepped up containment efforts and work toward new vaccines could blunt the economic impact of the coronavirus.
On economic front, the services sector of the US economy, which accounts for most activity, grew at the fastest pace in six months in January, according to ISM's purchasing manager survey.
Earlier, a government report showed that the US trade deficit fell in 2019 for the first time in six years, reflecting tariff-reduced imports from China, with a 1.7% decline to $616.8 billion in December.
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