Local stocks are trading lower in early trade in sync with Asian stocks on fears of a second wave of coronavirus infections in China. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 213.33 points or 0.63% at 33,567.56. The Nifty 50 index was down 56.25 points or 0.56% at 9,916.65.
The S&P BSE Mid-Cap index was up 0.09%. The S&P BSE Small-Cap index was up 0.75%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 971 shares rose and 577 shares fell. A total of 80 shares were unchanged.
Stocks in news:
Reliance Industries (RIL) rose 0.82%. RIL announced on Saturday that global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. The investment will translate into a 0.93% equity stake in Jio Platforms on a fully diluted basis for TPG.
Separately, RIL announced on Saturday an investment of Rs 1894.50 crore by L Catterton, one of the world's largest consumer focused private equity firms. This investment values Jio Platforms at an equity value Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. L Catterton's investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis.
Meanwhile, the shares offered in just concluded rights issue by RIL will be listed on stock exchanges today. On June 11, the allotment of partly paid-up shares to the demat accounts of the shareholders was completed by RIL. RIL's Rs 53,124 crore rights issue was India's largest-ever rights issue. It ended last week with a 1.6 times subscription.
Wipro gained 2.28%. Wipro announced that Wipro VirtuaDesk, Wipro's Desktop as a Service solution and Wipro's Digital Workspace solution, will join forces with Citrix Systems, Inc. and Microsoft to help customers drive business continuity while executing operations within the boundaries of social distancing and other limitations that have currently become the new normal.
Cadila Healthcare rose 1.51%. Zydus Cadila announced that it has signed a non-exclusive licensing agreement with Gilead Sciences Inc., for the manufacturing and distribution of Remdesivir, the investigational drug, which has been issued an Emergency Use Authorization by the U.S. Food and Drug Administration (FDA) to treat patients suffering from severe symptoms of Novel Coronavirus. Zydus has been supporting the fight against COVID 19 with therapeutics, vaccines and diagnostics.
Grasim Industries lost 1.57%. The company's consolidated net profit rose 31.67% to Rs 1,505.87 crore on 11.69% fall in total income to Rs 20,201.67 crore in Q4 March 2020 over Q4 March 2019.
Eicher Motors rose 1.73%. The company's consolidated net profit fell 44.15% to Rs 304.28 crore on 13.5% fall in total income to Rs 2,351.30 crore in Q4 March 2020 over Q4 March 2019.
PNB Housing Finance dropped 3.44% after the company reported consolidated net loss of Rs 242.06 crore in Q4 March 2020 against a net profit of Rs 379.77 crore in Q4 March 2019. Total income fell 9.14% to Rs 1,951.84 crore in Q4 March 2020 over Q4 March 2019.
Bhel slumped 5.56% after the company reported consolidated net loss of Rs 1,532.67 crore in Q4 March 2020 against a net profit of Rs 681.46 crore in Q4 March 2019. Total income fell 50.49% to Rs 5,196.59 crore in Q4 March 2020 over Q4 March 2019.
Global Markets:
Overseas, Asian stocks are trading lower on Monday on fears of a second wave of coronavirus infections in China.
Meanwhile, Chinese economic data for May released Monday missed expectations. Industrial production in the country for that month rose 4.4% year-on-year. Retail sales declined 2.8% year-on-year in May.
In US, stocks closed higher Friday in choppy trading as Wall Street attempted to recover from Thursday's steep losses. Adobe Inc. shares came close to topping a previous all-time closing high as work-from-home arrangements boosted subscription revenue.
Investors are assessing the state of the stock-market's 10-week rally, a day after equity indexes registered a bruising decline prompted by fears of a resurgence in the coronavirus pandemic in the U.S. and a bleak economic outlook from the head of the Federal Reserve.
Richmond Federal Reserve Bank President Tom Barkin on Friday said that the pandemic could have effects that last beyond the next couple of months and cautioned that some of the millions of jobs that have been lost during the viral outbreak may never return, echoing similar remarks made by Fed Chairman Jerome Powell on Wednesday.
Back home, the Sensex and the Nifty recouped all losses and ended with strong gains on Friday, mirroring a recovery in global stock markets. The barometer S&P BSE Sensex rose 242.52 points or 0.72% at 33,780.89. It surged 1432.79 points, or 4.43% from the day's low of 32,348.10 hit in early trade.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,311.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,945.15 crore in the Indian equity market on 5 May, provisional data showed.
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