The benchmark indices traded in a narrow range with strong gains in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, rose 359.34 points or 0.68% at 52,844.01. The Nifty 50 index gained 104.80 points or 0.67% at 15,827.
HDFC Bank (up 1.31%), Reliance Industries (RIL) (up 0.78%) and ICICI Bank (up 0.69%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index added 0.27%. The S&P BSE Small-Cap index rose 0.87%.
Buyers outpaced sellers. On the BSE, 2,198 shares rose and 1,046 shares fell. A total of 173 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 982.80 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 930.39 crore in the Indian equity market on 2 July 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,37,88,043 with 39,77,121 deaths. India reported 4,82,071 active cases of COVID-19 infection and 4,02,728 deaths while 2,97,00,430 patients have been discharged, 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 2021, 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.
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.
Politics:
The Monsoon session of Parliament will commence from 19 July 2021 and will continue till 13 August 2021, an official communication said on Friday, 5 July 2021. Both Lok Sabha and Rajya Sabha issued official orders about the convening of the Monsoon session from 19 July 2021.
Gainers & Losers:
Hindalco Industries (up 2.75%), Eicher Motors (up 1.64%), Tata Steel (up 1.58%), Larsen & Toubro (L&T) (up 1.57%) and Bajaj Finance (up 1.34%) were major gainers in Nifty 50 index.
Adani Ports & Special Economic Zone (APSEZ) (down 0.94%), Tech Mahindra (down 0.89%), HDFC Life Insurance Company (down 0.79%), Bharat Petroleum Corporation (BPCL) (down 0.72%) and HCL Technologies (down 0.63%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Uttam Sugar Mills declined 2.04%. The company has commissioned the ethanol distillery with 50 kilo litre per day (KLPD) capacity at Libberheri unit in Uttarakhand.
Heranba Industries rallied 6.40% after the company said that it has received environmental clearance for manufacturing at its Sarigam plant in Gujarat. The environmental clearance, received from Ministry of Environment, Forest and Climate Change (MoEFCC) of Government of India, is for expansion of the company's Gujarat-based pesticides intermediates, fungicides, herbicides, insecticides manufacturing plant.
Heranba has an existing land parcel measuring 55,000 sq.mt. at Sarigam and no additional land will be required for the proposed expansion. The company has developed greenbelt in area of 5,500 sqm and will develop greenbelt in an area of 12,650 sqm covering 33% of the project area. This expansion plan will entail setting up an additional manufacturing capacity of 24,900 Tonnes per Annum (TPA) for manufacturing of insecticides, fungicides, herbicides and pesticides intermediates. The estimated cost for this expansion is Rs 110 crore, which includes an existing investment of Rs 20 crore.
Federal Bank advanced 2.11%. The private lender on Sunday announced that its total deposits increased 9% to Rs 1,69,393 crore as of 30 June 2021 compared to Rs 1,54,938 crore reported on 30 June 2020. Sequentially, deposits fell 1.88% as of 30 June 2021 from Rs 1,34,877 crore as on 31 March 2021. At the end of the June 2021, the private lender's customer deposits were at Rs 1,64,603 crore (up 10% Y-o-Y), interbank deposits were at Rs 2,362 crore (down 17% Y-o-Y) and certificates of deposit stood at Rs 2,428 crore (down 9% Y-o-Y).
CASA rose 19% to Rs 58,959 crore as of 30 June 2021 from Rs 49,616 crore registered in 30 June 2020. CASA ratio improved to 34.81% at the end of 30 June 2021 from 32.02% recorded on 30 June 2021. Federal Bank's gross advanced grew by 8% to Rs 132,770 crore as of 30 June 2021 from Rs 1,23,430 crore posted on 30 June 2020. On a sequential basis, gross advances fell 1.56% from 1,34,877 crore posted in 31 March 2021. The bank's liquidity coverage ratio was at 215.20% as on 30 June 2021, falling from 233.14% posted on 30 June 2020.
Global Markets:
European shares fell across the board while most Asian stocks declined on Monday, 5 July 2021.
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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