The sentiment was dented after the media reported that fresh clashes broke out between Indian and Chinese troops at Pangong in Ladakh near Line of Actual Control on the intervening night of 29-30 August. The Indian forces retaliated strongly to China's plans to change the status quo at the LAC, reports suggested.
The broader market witnessed steep correction. The S&P BSE Mid-Cap index slipped 2.21% while the S&P BSE Small-Cap index declined 3.08%.
Sellers outnumbered buyers. On the BSE, 496 shares rose and 2,173 shares fell. A total of 135 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,004.11 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 543.56 crore in the Indian equity market on 28 August, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 25,143,423 with 845,414 deaths. India reported 7,81,975 active cases of COVID-19 infection and 64,469 deaths while 27,74,801 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The National Statistical Office (NSO) is scheduled to release its estimates of gross domestic product (GDP) for the first quarter of this fiscal on today.
The Government will also announce its fiscal deficit level for the period of April-July 2020 today. India's fiscal deficit stood at record Rs 6.62 trillion in April-June 2020-21 which is equivalent to 83.2% of the Government's budget estimate for this financial year.
The Government will announce infrastructure output data for the month of July 2020.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, soared 13.63% to 20.85. The Nifty September 2020 futures were trading at 11,578.60, at a premium of 7.3 points compared with the spot at 11,571.30.
The Nifty option chain for 3 September 2020 expiry showed maximum Call OI of 30.36 lakh contracts at the 12,000 strike price. Maximum Put OI of 26.44 lakh contracts was seen at 11,500 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 22.53 lakh contracts at the 12,000 strike price. Maximum Put OI of 25.91 lakh contracts was seen at 11,000 strike price.
Stocks in Spotlight:
Shares of Adani Enterprises were trading 2.17% lower while shares of GVK Power & Infra were up 4.89%. Adani Airport Holdings (AAHL), a subsidiary of Adani Enterprises, will acquire debt of GVK Airport Developer (GVK ADL). According to the agreement, AAHL will acquire the debt of GVK ADL from its airport lenders. The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition, to release of the guarantee given by GVK Power and Infrastructure with respect to the debt acquired by it. The Adani Group will also take steps to complete the acquisition of a 23.5% equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval. Upon the acquisition of the debt of GVK ADL, Adani Group will take steps to obtain necessary customary and regulatory approvals, as may be required, to acquire controlling interest in MIAL. AAHL intends to infuse funds into MIAL to ensure that MIAL receives much needed liquidity and also achieves financial closure of Navi Mumbai International Airport to be able to commence construction.
RBL Bank fell 5.27% after Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of the bank, sold 18.92 lakh shares, or 0.37% stake, in the bank on 27th and 28th of August 2020 for about Rs 38.52 crore. Ahuja sold the shares to extinguish personal debt obligations and related servicing burden, undertaken over the last few years mainly to exercise & purchase vested ESOPs (and pay associated tax), as well as to take care of some pressing family commitments. The sale represents approximately 18% of his/family's total holdings and Ahuja continues to retain 80.10 lakh shares (approx 1.6% holding) of RBL bank post the sale. The disclosure was made after market hours on Friday, 28 August 2020. As of 30 June 2020, Vishwavir Ahuja held 1.95% stake in RBL Bank.
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