Key indices were trading higher on positive Asian cues. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 114.94 points or 0.28% at 41,142.66. The Nifty 50 index was up 36.70 points or 0.30% at 12,125.85.
The S&P BSE Mid-Cap index was up 0.54%. The S&P BSE Small-Cap index was up 0.47%. Both these indices outperformed the BSE Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 673 shares rose and 224 shares fell. A total of 35 shares were unchanged.
The Reserve Bank of India (RBI) will take its interest rates decision today, 6 February 2020 amid concerns over fiscal deficit and inflation. The six-member Monetary Policy Committee (MPC) kicked off three-day monetary policy meet on Tuesday, 4 February 2020, for its sixth bi-monthly Monetary Policy Statement for 2019-20. The resolution of the MPC will be unveiled at 11.45 AM today, 6 February 2020.
Earlier, the Reserve Bank of India (RBI) in December had kept interest rates unchanged after five consecutive cuts.
Bi-monthly monetary policy's outlook on inflation and economy will be more vital, as the markets are already factoring in that central bank will most likely maintain status quo on interest rates.
Q3 earnings impact:
Among stocks, Hindustan Petroleum Corporation fell 1.20%. Hindustan Petroleum Corporation reported 167.80% rise in consolidated net profit to Rs 1,027.23 crore on 1.98% fall in total income to Rs 71,371.09 crore in Q3 December 2019 over Q3 December 2018.
Engineers India jumped 4.81%. Engineers India reported 19.50% rise in consolidated net profit to Rs 111.82 crore on 51.42% rise in total income to Rs 965.84 crore in Q3 December 2019 over Q3 December 2018.
GE Power India surged 6.16%. GE Power India reported 146.06% rise in consolidated net profit to Rs 100.81 crore on 45.69% rise in total income to Rs 841.20 crore in Q3 December 2019 over Q3 December 2018. The company earned exceptional item of Rs 56.53 crore gain on sale of Vadodara factory land & building. The company ended the quarter with an order backlog of Rs 8818 crore.
DLF fell 1.91%. DLF reported 23.53% rise in consolidated net profit to Rs 414.01 crore on 26.67% fall in total income to Rs 1,764.27 crore in Q3 December 2019 over Q3 December 2018. The company declared interim dividend of Rs 1.20 per share.
Stocks in news:
Avenue Supermarts rose 1.88%. Avenue Supermarts, the company, which owns and operates popular supermarket chain DMart, launched a qualified institutional placement (QIP) offering to raise up to Rs 4,000 crore at a floor price of Rs 1999.04 per share. Funds will be used to expand the company's store network, invest in supply chain and also to repay loans.
ITI jumped 10.99%. ITI said the company has withdrawn FPO due to prevailing market condition.
Hindustan Aeronautics rose 1.39%. Hindustan Aeronautics (HAL) said the company, Israel Aerospace Industries (IAI) and Dynamatic Technologies (DTL) signed a memorandum of understanding (MoU) for marketing, manufacturing and selling of IAI's Unmanned Ariel Vehicles (UAVs) to Indian potential customers such as Indian Defence Forces, Paramilitary Forces and Central Armed Police Forces at DefExpo 2020.
Lupin was up 1.27%. Lupin announced that it has received approval for its Leflunomide Tablets USP, 10 mg and 20 mg, from the United States Food and Drug Administration (U.S. FDA), to market a generic equivalent of Arava Tablets, 10 mg and 20 mg, of SanofiAventis. The product would be manufactured at Lupin's Pithampur (Unit 1) facility, India. Leflunomide Tablets USP, 10 mg and 20 mg, are indicated for the treatment of adults with active rheumatoid arthritis (RA).
Global Markets:
Overseas, Asian stocks were trading higher on Thursday after US S&P 500 hit a record peak following encouraging economic data, while investors keep a wary eye on the impact of the coronavirus outbreak.
In US, stocks closed sharply higher on Wednesday for the third consecutive session as Wall Street continued its rebound from a selloff sparked in part by the outbreak of an Asian virus that has killed hundreds and infected tens of thousands.
Bullish sentiment was seen driven by hopes that stepped up containment efforts and work toward new vaccines could blunt the economic impact of the coronavirus.
On economic front, the services sector of the US economy, which accounts for most activity, grew at the fastest pace in six months in January, according to ISM's purchasing manager survey.
Earlier, a government report showed that the US trade deficit fell in 2019 for the first time in six years, reflecting tariff-reduced imports from China, with a 1.7% decline to $616.8 billion in December.
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