In the broader market, the S&P BSE Mid-Cap index rose 0.2% while the S&P BSE Small-Cap index gained 0.26%.
The market breadth was positive. On the BSE, 1680 shares rose and 1407 shares fell. A total of 148 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 213,866,744 with 4,463,127 global deaths.
India reported 333,725 active cases of COVID-19 infection and 436,365 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
The country's COVID-19 vaccination coverage has crossed a significant milestone of 60 Crore doses. Union Health Ministry said more than 46 crore vaccine doses have been administered as first dose and over 13 crore vaccine doses given as second doses so far.
Economy:
Global rating agency, Moody's Investors Service on August 26 said the second wave of Covid will lead to new problem loans in the retail and SME segments, but a severe asset quality decline is unlikely
The improved profitability, capital and loss buffers of banks will help them absorb anticipated loan losses and maintain credit strength, Moody's said in a release.
"A severe deterioration of banks asset quality is unlikely, despite an expected rise in new loan impairments particularly among individuals and small businesses that were hit hardest by the virus outbreak," said Alka Anbarasu, a Moody's Vice President and Senior Credit Officer.
"This is because government initiatives like the emergency credit linked guarantee scheme (ECLGS) have been effective in providing immediate liquidity for businesses," Anbarasu said.
In addition, accommodative interest rates and loan restructuring schemes will continue to mitigate asset risks, such that the coronavirus resurgence will delay but not derail the improvements in banks' balance sheets that had begun before the pandemic, Moody's said.
Index Movers:
Britannia Industries (up 1.32%), Reliance Indsutries (up 1.06%), Mahindra (up 0.96%), ICICI Bank (up 0.75%) were top gainers in Nifty 50 index.
PowerGrid Corporation of India (down 2.02%), JSW Steel (down 1.78%), Hindalco Inds (down 1.76%), NTPC (down 1.54%) and Tata Steel (down 1.47%) were top losers in Nifty 50 index.
Stocks in Spotlight:
Bharti Airtel fell 3%. The teleco said that a meeting of the board of directors is scheduled for Sunday, 29 August 2021, to consider fund raising plan through equity or equity linked or debt instruments or any combination there-of.
Cipla fell 0.12%. The drug company said a joint venture company is incorporated with an aim to enter the respiratory biosimilars space. Under the terms of the agreement, the joint venture will leverage Cipla and Kemwell's complementary strengths for end-to-end product development, clinical development, regulatory filings, manufacturing and commercialisation of biopharmceutical products. Cipla's respiratory prowess combined with Kemwell's expertise in biologics will accelerate bringing essential products to market.
Procter & Gamble Hygiene & Health Care (PGHH) rose 2.59%. The company posted a 29.2% fall in net profit to Rs 48.98 crore on 24% rise in net sales to Rs 786.59 crore in Q4 June 2021 over Q4 June 2020.
Global Markets:
Shares in Europe were trading lower on Thursday after rise in COVID-19 cases and worries about monetary policy outlook dented the sentiment.
Most Asian stocks declined on Thursday after South Korea's central bank hiked interest rates. South Korea's central bank raised its policy rate on Thursday, becoming the first major Asian economy to do so in the pandemic amid concerns record-low monetary settings are overheating demand. The Bank of Korea's monetary policy board raised the benchmark interest rate by 25 basis points to 0.75%.
Meanwhile, Japan saw the prices companies charge each other for services rise 1.1% in July from a year earlier, marking the fifth straight month of increase, Bank of Japan data showed on Thursday. The increase in the services producer price index was smaller than a revised 1.3% gain marked in June, the data showed.
US stocks advanced on Wednesday, with chipmakers and financials helping to push the S&P 500 and the Nasdaq to record closing highs as investors look to the upcoming Jackson Hole Symposium.
The highly anticipated Jackson Hole symposium kicks off Thursday, and central bankers may provide updates on their plan around tapering monetary stimulus. The Federal Reserve has been purchasing at least $120 billion of bonds per month to curb longer-term interest rates and jumpstart economic growth as the pandemic wreaked havoc on the economy. Chairman Jerome Powell is slated to make remarks on Friday.
Johnson & Johnson said on Wednesday that its Covid Vaccine booster shot showed promising results in early stage clinical trials, significantly increasing virus-fighting antibodies.
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