Barometers hit fresh intraday high in afternoon trade. Strong global cues and a rally in US Dow Jones futures boosted sentiment. At 13:26 IST, the barometer index, the S&P BSE Sensex, was up 608.35 points or 1.69% at 36,629.77. The Nifty 50 index added 194.5 points or 1.83% at 10,801.85
The Nifty now trades 82.88 points below its 200 days simple moving average placed at 10,884.73.
Investors' risk appetite also strengthened after the media reported that India and China have begun a slight disengagement from the face-off sites in the Galwan Valley and Gogra-Hot Springs areas of eastern Ladakh. According to the reports, the Chinese People's Liberation Army (PLA) has possibly moved back by 1 to 1.5 km from the friction site in Galwan Valley. The PLA was seen removing tents and structures at Patrolling Point 14, reports added.
As per the proposed disengagement plan, the rival troops will gradually move back distances of 2.5 to 3 km in phases to de-escalate tensions at the face-off sites, which will later be followed by de-induction of huge military build-ups along the LAC.
In the broader market, the S&P BSE Mid-Cap index rose 1.04% while the S&P BSE Small-Cap index gained 1.33%. Both these indices trailed the Sensex.
The market breadth favoured the buyers as 1,609 shares rose and 1012 shares fell. A total of 171 shares were unchanged on the BSE.
Foreign portfolio investors (FPIs) bought shares worth Rs 857.29 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 331.96 crore in the Indian equity market on 3 July, provisional data showed.
COVID-19 Update:
India reported 2,53,287 active cases of COVID-19 infection and 19,693 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,450,247 with 534,273 deaths so far, according to data from Johns Hopkins University.
Gainers & Losers:
Hindalco Industries (up 5.64%), Mahindra & Mahindra (up 4.88%), Tata Motors (up 4.49%), Vedanta (up 4.09%) and Grasim Industries (up 3.96%) were top gainers in Nifty 50 index.
ITC (down 3.4%), GAIL (down 0.86%), Bajaj Auto (down 0.83) and Dr. Reddy's Laboratories (down 78%) were top losers in Nifty 50 index.
Stocks in Spotlight:
ICICI Bank was up 0.46% to Rs 362.65. The bank's board will meet on 8 July 2020 to consider the proposal of raising funds by issue of equity shares and/or other equity linked securities, through permissible modes.
IndusInd Bank rose 3.87% to Rs 506.10 after the bank said its net advances rose 4% to Rs 2,00,357 crore in Q1 June 2020 from Rs 1,93,520 crore from Q1 June 2019. Deposits stood at Rs 2,11,970 crore in Q1 FY21, up 6% from Rs 2,00,586 crore in Q1 FY20. Retail deposits and deposits from small business customers amounted to Rs 67,318 crore in Q1 FY21, or 31.8% of the total deposits reported during the quarter.
HDFC Bank added 3.35% to Rs 1110.20 after the private lender's advances aggregated to approximately Rs 10,04,500 crore as of 30 June 2020, registering a growth of around 21% from Rs 8,29,700 crore registered in 30 June 2019. Deposits aggregated to approximately Rs 11,89,500 crore as of 30 June 2020, registering a growth of around 25% from Rs 9,54,600 crore in 30 June 2019.
Federal Bank gained 2.64% to Rs 54.40 after the private bank's total deposits grew 17% to Rs 1.54 lakh crore (provisional) as on 30 June 2020 as against Rs 1.32 lakh crore as on 30 June 2019. Gross advances advanced 8% to Rs 1.23 lakh crore (provisional) as on 30 June 2020 compared with Rs 1.13 lakh crore as on 30 June 2019.
HDFC was up 0.54%. The housing finance company announced that it assigned loans amounting to Rs 1,376 crore in Q1 June 2020, down 80.97% compared with Rs 7,230 crore in Q1 June 2019. All the loans assigned during the quarter were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between HDFC and HDFC Bank. In Q1 June 2020, the profit on sale of investments was Rs 1,241 crore, lower than Rs 1,894 crore in Q1 June 2019. This was on account of the sale of 2.60 crore equity shares of HDFC Life Insurance Company (HDFC Life). As at 30 June 2020, HDFC's equity shareholding in HDFC Life stood at 50.1%. The Reserve Bank of India has mandated that HDFC reduce its shareholding in HDFC Life to 50% or below by 16 December 2020. Gross income from dividend for Q1 June 2020 was Rs 298 crore, higher than Rs 1 crore in corresponding period of the previous year
Edelweiss Financial Services tumbled 3.31% to Rs 58.5 after the NBFC reported a consolidated net loss of Rs 2,281.55 crore in Q4 March 2020 as against net profit of Rs 246.32 crore in Q4 March 2019. The NBFC's total income dropped 35.4% to Rs 1,965.87 crore in Q4 FY20 from Rs 3,041.20 crore in Q4 FY19. The result was announced on Saturday, 4 July 2020. Edelweiss reported a pre-tax loss of Rs 2,818.95 crore in Q4 FY20 as against a profit before tax of Rs 405.63 crore in Q4 FY19. The company received a total tax rebate of Rs 537.40 crore in Q4 FY20 as against total tax expense of Rs 159.31 crore in Q4 FY19. Edelweiss said its total impairment stood at Rs 2,549 crore in Q4 March 2020 based on revisions in the Expected Credit Loss (ECL) model and impact of COVID-19.
Global Markets:
European shares opened higher while Asian shares were up across the board on Monday as investors focus on the prospect of economic recovery and progress on potential coronavirus drugs, shrugging off concerns about a further acceleration of the pandemic.
US Dow Jones futures were up 387 points, indicating a strong opening in the US market later today.
US market was shut on Friday to observe the July Fourth holiday which falls on Saturday this year.
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