Key benchmark indices traded in a narrow range with modest gains in afternoon trade. HDFC twins, ITC and NTPC supported the indices. The barometer index, the S&P BSE Sensex rose 287.01 points or 0.75% at 38,507.40. The Nifty 50 index advanced 86.30 points or 0.76% at 11,398.50.
The broader market continued trading firm. The S&P BSE Mid-Cap index rose 1.04%. The S&P BSE Small-Cap index gained 1.80%.
Buyers outnumbered sellers. On the BSE, 1,804 shares rose and 829 shares fell. A total of 148 shares were unchanged. In Nifty 50 index, 41 stocks advanced while 9 stocks declined.
Foreign portfolio investors (FPIs) sold shares worth Rs 268.46 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 672.23 crore in the Indian equity market on 20 August 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 2,26,83,235 with 7,93,763 deaths. India reported 6,92,028 active cases of COVID-19 infection and 54,849 deaths while 21,58,946 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The Reserve Bank of India on Thursday released the minutes of the monetary policy committee (MPC) meeting held from 4 to 6 August 2020. In its growth outlook, the MPC observed that the recovery in the rural economy is expected to be robust, buoyed by the progress in kharif sowing. Manufacturing firms responding to the Reserve Bank's industrial outlook survey expect domestic demand to recover gradually from Q2 and to sustain through Q1:2021-22.
On the other hand, consumer confidence turned more pessimistic in July relative to the preceding round of RBI's survey. External demand is expected to remain anaemic under the weight of the global recession and contraction in global trade. Taking into consideration the above factors, real GDP growth in Q2-Q4 is expected to evolve along the lines noted in the May resolution. For the year 2020-21, as a whole, real GDP growth is expected to be negative. An early containment of the COVID-19 pandemic may impart an upside to the outlook. A more protracted spread of the pandemic, deviations from the forecast of a normal monsoon and global financial market volatility are the key downside risks, it said.
Gainers & Losers:
NTPC (up 5.24%), Power Grid Corporation of India (up 4.58%), Asian Paints (up 2.65%), State Bank of India (up 2.34%) and HDFC Bank (up 2.20%) were major gainers in Nifty 50 index.
Zee Entertainment Enterprise (down 3.36%), Mahindra & Mahindra (down 0.59%), Infosys (down 0.58%), Hindalco Industries (down 0.45%) and HCL Technologies (down 0.42%) were major losers in Nifty 50 index.
Results Today:
Rossari Biotech was up 3.68% ahead of its first quarterly earnings post listing on 23 July 2020.
Indiabulls Housing Finance (up 0.66%), Kolte-Patil Developers (up 3.14%), Punjab National Bank (up 3.27%), Oil India (up 0.75%) and Union Bank of India (up 2.17%) are some of the companies that will announce their results today.
Earnings Impact:
MOIL fell 0.10%. The state-owned mining corporation reported 97.93% fall in consolidated net profit to Rs 1.88 crore on 45.86% fall in net sales to Rs 178.05 crore in Q1 June 2020 over Q1 June 2019. Consolidated profit before tax (PBT) dropped 98.5% to Rs 2.12 crore in Q1 June 2020 as against Rs 140.10 crore in Q1 June 2019. Profit was weighed adversely by exceptional items of Rs 50 crore which included contribution towards PM Cares Fund and CM Relief Fund. The state-owned company said that the COVID-19 pandemic and lockdown protocols have led to severe disruptions, affecting both the turnover and the profit during current reporting period.
Indian Overseas Bank advanced 2.97% after the bank posted net profit of Rs 120.69 crore in Q1 June 2020 as compared with net loss of Rs 342.08 crore in Q1 June 2019. Total income rose 4.5% to Rs 5,233.63 crore in Q1 June 2020 over Q1 June 2019. The bank's provisions and contingencies dropped 16.26% to Rs 969.52 crore in Q1 FY21 over Rs 1,157.82 crore in Q1FY20. Provision Coverage Ratio (PCR) improved to 87.97% as on 30 June 2020 as against 72.24% as on 30 June 2019.
Stocks in Spotlight:
GMM Pfaudler jumped 4.55%. The company announced the signing of definitive agreements to acquire a majority stake in the global business of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG). As per the agreements, GMM (directly and through its subsidiary Mavag AG) and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around $27.4 million, will be funded by the company through a mix of internal accruals and debt. Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the company. The company will have a consolidated revenue of Rs 2,000 crore and EBITDA of approximately Rs 250 crore.
Premier Explosives hit an upper circuit of 5% at Rs 135.85 after the company said it received an order worth Rs 3.90 crore from Israel Aerospace Industries. The company will develop and supply EDRM Rocket Motors. The order is to be delivered within nine months.
ICICI Bank rose 0.07%. The private lender will acquire 4.46 crore equity shares of India International Exchange (India INX) at Re 1 each. Post deal, ICICI Bank's stake would increase from 7.7% to 9.9%, according to a regulatory filing issued during market hours today, 21 August 2020. The acquisition will be completed by 31 August 2020.
Global Markets:
Shares in Europe and Asia were trading higher on Friday after a tech-driven rally on Wall Street. In a media release announcing the quarterly results, Alibaba Group Chief Financial Officer Maggie Wu said the firm's "domestic core commerce business has fully recovered to pre-COVID-19 levels across the board."
In Europe, the minutes from the last meeting of the European Central Bank showed that policymakers debated the flexibility of the landmark Pandemic Emergency Purchase Programme.
In US, Nasdaq ended at a record high on Thursday, with the S&P 500 and Dow also rising, as gains in heavyweight tech stocks outweighed downbeat data that affirmed the Federal Reserve's view of a difficult road to economic recovery.
Gains in Apple Inc, Amazon.com Inc and Microsoft Corp underpinned a rally in Wall Street's three main indexes as investors bet the tech giants would ride out the economic crisis. Tesla Inc. shares gained more than 6% on Thursday to end at a record $2,001.83 and setting an intraday record of $2,021.99.
The Trump administration on Thursday reportedly declined to acknowledge any plans to meet with China over the Phase 1 trade deal after the commerce ministry in Beijing said bilateral talks would be held in the coming days to evaluate the agreement's progress.
Meanwhile, the latest figures, released Thursday by the Labor Department, showed the number of laid-off workers seeking U.S. unemployment benefits rose to 1.1 million last week after two weeks of declines. Jobless claims had fallen last week below 1 million for the first time since March, to 971,000.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
