Local stocks are trading lower in early trade on selling pressure in index pivotals. At 9:27 IST, the barometer index, the S&P BSE Sensex, was down 275.96 points or 0.64% at 43,081.23. The Nifty 50 index was down 79.35 points or 0.63% at 12,611.45.
The S&P BSE Mid-Cap index was down 0.1%. The S&P BSE Small-Cap index was up 0.07%.
The market breadth, indicating the overall health of the market, is positive. On the BSE, 932 shares rose and 844 shares fell. A total of 70 shares were unchanged.
Macro data:
On the macro front, the growth rate of India's retail inflation, which is measured by the Consumer Price Index (CPI), climbed 7.61% in month of October. The CPI for the month of September was also revised to 7.27% from 7.34%.
Separately, India's industrial activity returned to the growth territory in September after a gap of six months. Data released on Thursday showed a small uptick led by recovery in consumer goods, electricity and mining sectors. The index of industrial production (IIP) grew by 0.2% in September on a year on year basis compared to a 7.36% contraction posted in August, according to data by the national statistical office.
Stocks in news:
Reliance Industries (RIL) rose 1.09%. RIL has entered into a definitive agreement, for making capital contribution, up to USD 50 million, in Breakthrough Energy Ventures II, L.P. (BEV), a limited partnership, newly incorporated under the Delaware State Laws, United States of America. The capital contribution commitment of US$ 50 million constitutes 5.75% of the size of the fund contemplated at present. The said investment will be made in tranches over the next 8-10 years.
Grasim Industries rose 0.37%. Grasim Industries said its consolidated net profit rose 3.30% to Rs 1,521.40 crore in Q2 September 2020 over Q2 September 2019. Revenue from operations were almost flat at Rs 18,400.25 crore in Q2 September 2020 as against Rs 18,400.17 crore in Q2 September 2019.
Eicher Motors advanced 3.24%. Eicher Motors reported 40.05% fall in consolidated net profit to Rs 343.34 crore on 4.78% fall in total income to Rs 2,233.58 crore in Q2 September 2020 over Q2 September 2019.
Dr. Reddy's Laboratories rose 0.44%. Dr. Reddy's Laboratories, along with its subsidiaries together referred to as Dr. Reddy's) announced the launch of Succinylcholine Chloride Injection USP, 200 mg/10 mL (20 mg/mL), Multiple-Dose Vials a therapeutic equivalent generic version of Quelicin (Succinylcholine Chloride) Injection, 20 mg/mL, approved by the U.S. Food and Drug Administration (USFDA).
Sun TV Network lost 4.58% after the company reported 9.12% fall in consolidated net profit to Rs 335.09 crore on 6.37% fall in total income to Rs 823.11 crore in Q2 September 2020 over Q2 September 2019.
Mahanagar Gas rose 0.49%. The company reported 46.66% fall in net profit to Rs 144.34 crore on 34.89% fall in total income to Rs 525.16 crore in Q2 September 2020 over Q2 September 2019.
Global Markets:
Overseas, Asian stocks are trading lower on Friday as coronavirus cases continue to surge in the U.S., dimming optimism from positive vaccine news earlier in the week.
In US, Wall Street ended sharply lower on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.
Investor focus on Friday was likely on the coronavirus situation in the U.S., as daily new cases of the virus continue to rise in the country, setting fresh records.
U.S. Federal Reserve Chairman Jerome Powell warned Thursday that the next few months could be challenging despite recent developments on the vaccine front. From our standpoint, it's just too soon to assess with any confidence the implications of the news for the path of the economy, especially in the near term, Powell said regarding the vaccine.
On Thursday, top Democrats in the U.S. Congress urged renewed negotiations over a multitrillion-dollar coronavirus aid proposal, but the top Republican immediately rejected their approach as too expensive, continuing a months-long impasse.
On the data front, the number of Americans filing new claims for unemployment benefits fell to a seven-month low last week. Initial claims for state unemployment benefits totalled a seasonally adjusted 709,000 for the week ended November 7 compared to 757,000 in the prior week, the Labor Department said on Thursday.
Back home, the benchmark indices snapped an eight-day rising streak on Thursday as the economic measures announced by Finance Minister Nirmala Sitharaman failed to cheer investors. The barometer index, the S&P BSE Sensex, dropped 236.48 points or 0.54% at 43,357.19. The Nifty 50 index declined 58.35 points or 0.46% at 12,690.80.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,514.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,239.43 crore in the Indian equity market on 12 November, provisional data showed.
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