Key equity benchmarks ended marginally higher, rising for the second straight day. Steep gains were capped amid worries about slowing economic growth and ongoing Sino-US trade tensions. Firmness in auto and banks shares was nullified by weakness in IT and pharma stocks.
The barometer index, the S&P BSE Sensex, rose 38.80 points or 0.1% to 37,350.33. The index hit a high of 37,444.45 and a low of 36,974.41 in the intraday.
The Nifty 50 index rose 18.4 points or 0.17% to 11,047.80. The index hit a high of 11,068.65 and a low of 10,924.30 in the intraday.
In the broader market, the S&P BSE Mid-Cap index rose 0.1%. The S&P BSE Small-Cap index rose 0.11%.
The market breadth was almost even. On the BSE, 1194 shares rose and 1301 shares fell. A total of 146 shares were unchanged.
IT shares declined. TCS (down 1.87%), HCL Technologies (down 1.31%), Mindtree (down 1.19%), Wipro (down 0.74%) and Infosys (down 0.05%) edged lower.
Glenmark Pharmaceuticals slumped 5.94% as global brokerages reportedly cut price target citing weak June quarter earnings. The drug maker's consolidated net profit fell 53.08% to Rs 109.31 crore on 7.24% rise in net sales to Rs 2283.60 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on 13 August 2019.
Yes Bank rose 3.79% to Rs 79.45 after the bank said it raised Rs 1,930 crore through qualified institutions placements. The QIP opened on 8 August 2019 and closed on 14 August 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers (QIBs) at Rs 83.55 per equity share. The announcement was made during market hours today, 16 August 2019.
The BSE Auto index rose 1.14% to 15,745.23, outperforming the Sensex.
Tata Motors rose 0.29%. CRISIL Ratings downgraded the credit rating of the company. CRISIL Ratings downgraded the auto maker's long term rating from CRISIL AA/ Negative to CRISIL AA-/ Negative while it kept the short term rating unchanged at CRISIL A1+. The rating agency justified the weakening of outlook on the business risk profile of Jaguar Land Rover (JLR). The announcement was made during market hours today, 16 August 2019.
Hero MotoCorp rose 1.33%. The company announced the closure of manufacturing facilities from 15 August 2019 to 18 August 2019. The company clarified that this has been a part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend but this also reflects the prevailing market demand scenario.
Indiabulls Group shares declined after credit ratings firm Moody's revised the corporate family rating of Indiabulls Housing Finance to "Ba2" from "Ba1". The outlook was changed to negative from stable. Indiabulls Housing Finance (IBH) (down 0.04%), while Indiabulls Integrated Services and Indiabulls Ventures fell by 0.95% each.
Suzlon Energy jumped 5.53% after the company reported a consolidated net loss of Rs 327.16 crore in Q1 June 2019, lower than net loss of Rs 572.86 crore in Q1 June 2018. Net sales declined 34.5% to Rs 833.15 crore in Q1 June 2019 over Q1 June 2018. The result came after market hours on 14 August 2019.
IDBI Bank tanked 8.47% after the bank's the bank reported a net loss of Rs 3,800.84 crore in Q1 June 2019, higher than net loss of Rs 2,409.89 crore in Q1 June 2018. Total Income fell 7.5% to Rs 5,923.93 crore in Q1 June 2019 over Q1 June 2018. On a positive side, the bank reported that gross NPA ratio improved to 29.12% as on 30 June 2019 as against 30.78% as on 30 June 2018.
The Indian Meteorological Department (IMD), stated in a latest update that the weekly rainfall averaged over the country as a whole was 45% above the Long Period Average(LPA) in 8th-14th August, mainly owing to the large quantum of rainfall received over central India and south peninsular India.
On the domestic macro front, India's merchandise exports increased 2.2% to $26.33 billion in July 2019 over a year ago. Meanwhile, merchandise imports dipped 10.4% to US$ 39.76 billion. The trade deficit narrowed 27.9% to $13.43 billion in July 2019 from US$ 18.01 billion in July 2018. This data was announced by government after market hours on Wednesday, 14 August 2019.
India's services trade surplus improved 3.4% to $6.79 billion in June 2019 from $6.57 billion in June 2018. As per the data released by the Reserve Bank of India, India's services exports increased 10.0% to $18.55 billion in June 2019 over June 2018. Meanwhile, India's services imports jumped 14.2% to $11.76 billion in June 2019.
Prime Minister Narendra Modi on Thursday called for treating wealth creators with respect. "Those who create wealth for the nation, those who contribute to the nation's wealth creation are serving the nation. We should not suspect them and we should not treat them with disdain. It is important that those who create wealth in the country should be given respect and encouraged. They should be given pride of place. If wealth is not created, it will not be distributed. If wealth is not distributed, then the poor cannot benefit. Therefore, wealth creation is critical for a country like us and we want to encourage that. To me, those who are engaged in creating wealth are the country's wealth," the PM said in his Independence Day speech.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.09, compared with its close of 71.27 during the previous trading session.
In the commodities market, Brent crude for October 2019 settlement was up 98 cents at $59.21 a barrel. The contract fell $1.25 or 2.1% to settle at $58.23 a barrel in the previous trading session.
Overseas, European stocks were trading higher. London's FTSE 100 now trades 0.58% up after delay in opening due to a technical glitch.
Asian stocks closed on a mixed note on Friday as investors watched developments in the US-China trade war.
US President Donald Trump said on Thursday he believed China wanted to make a trade deal and that the dispute would be fairly short. Beijing on Thursday vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.
In US, the S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset recessionary fears amid the simmering US-China trade tensions.
On the data front, U.S. industrial output fell 0.2% in July, the second drop in the past four months, the Federal Reserve reported Thursday. Industrial output is only up 0.5% on a year-on-year basis.
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