Key benchmark indices opened on a strong note on positive global stocks. At 9:23 IST, the barometer index, the S&P BSE Sensex, was up 712.90 points or 2.15% at 33,941.70. The Nifty 50 index was up 197.10 points or 2.01% at 10,010.80. Nifty spurted above the psychological 10,000 level in early trade.
The S&P BSE Mid-Cap index was up 1.26%. The S&P BSE Small-Cap index was up 1.17%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1281 shares rose and 232 shares fell. A total of 34 shares were unchanged.
Domestic economic data:
India's merchandise exports dipped 36.5% to US$ 19.05 billion in May 2020 over a year ago. Meanwhile, merchandise imports also declined 51.0% to US$ 22.20 billion. The trade deficit fell 79.5% to US$ 3.15 billion in May 2020 from US$ 15.36 billion in May 2019.
Merchandise exports in rupees plunged 31.1% to Rs 144166 crore, while imports rose declined 46.9% to Rs 167978 crore in May 2020 over May 2019. The trade deficit eased to Rs 23812 crore in May 2020 compared with Rs 107168 crore in May 2019.
As per the data released by the Reserve Bank of India, India's services exports declined 8.9% to US$ 16.45 billion in April 2020 over April 2019. Meanwhile, India's services imports dipped 18.4% to US$ 9.30 billion in April 2020.
India's services trade surplus improved 7.3% to US$ 7.15 billion in April 2020 from US$ 6.66 billion in April 2019.
Stocks in news:
Tata Motors rose 1.74%. Tata Motors reported consolidated net loss of Rs 9,894.25 crore in Q4 March 2020 against a net profit of Rs 1,117.48 crore in Q4 March 2019. Total income fell 28.11% to Rs 63,061.59 crore in Q4 March 2020 over Q4 March 2019.
Shriram Transport Finance Company (STFC) rose 0.41% after the company said that its board of directors has approved raising of funds for an amount aggregating up to Rs 4000 crore. The company approved fund raising up to Rs 1,500 crore via rights issue and up to Rs 2,500 crore via specified securities.
Can Fin Homes jumped 9.88% after net profit rose 37.45% to Rs 90.91 crore on 14.24% rise in total income to Rs 528.86 crore in Q4 March 2020 over Q4 March 2019.
Narayana Hrudayalaya fell 2.07%. Narayana Hrudayalaya's consolidated net profit dropped 67.81% to Rs 11.96 crore on 3.37% fall in total income to Rs 749.99 crore in Q4 March 2020 over Q4 March 2019.
CCL Products (India) gained 3.23% after net profit rose 18.41% to Rs 42.20 crore on 1.74% rise in total income to Rs 267.46 crore in Q4 March 2020 over Q4 March 2019.
Shalby dropped 2.86% after the company reported consolidated net loss of Rs 17.10 crore in Q4 March 2020 against a net profit of Rs 3.27 crore in Q4 March 2019. Total income rose 2.99% to Rs 119.00 crore in Q4 March 2020 over Q4 March 2019.
Global Markets:
Overseas, Asian stocks are trading higher on Tuesday following the positive cues overnight from Wall Street after the U.S. Federal Reserve also announced plans to buy individual corporate bonds to support market liquidity.
Investors now look ahead to the Bank of Japan's monetary policy decision due later in the day. The BoJ is widely expected to keep its benchmark lending rate unchanged at -0.1 percent, although it may introduce other means of stimulus.
Beijing closed the city's largest wholesale food market after scores of people tested positive for COVID-19. China on June 13 recorded its largest daily increase in cases since mid-April, as per reports.
In US, stocks benchmarks closed higher Monday, booking a sharp turnaround after the Federal Reserve took further steps to keep credit flowing to big businesses during the pandemic, amid signs of a resurgence of the deadly COVID-19 pandemic in parts of the world.
Zoom Video Communications Inc. shares climbed nearly 8.9% to a record high Monday on renewed pandemic fears on a resurgence of COVID-19 cases in China and in parts of the U.S. ViacomCBS Inc shares jumped 8.7%, making it the S&P 500's biggest gainer on Monday. The company's Chief Executive Bob Bakish said that live sports will return to TV in June, starting with PGA golf.
Stocks rose Monday after the Federal Reserve said it is expanding the scope of its $750 billion emergency corporate debt loan facility to include individual corporate bonds, while also scrapping some earlier restrictions for potential borrowers.
Meanwhile, increases in infections in Florida and Texas have raised fears about the success of efforts to gradually reopen the U.S. economy, with phased restarts of business activity in all 50 states. Reports on Sunday showed that Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina all had record numbers of new cases in the past three days.
Meanwhile, White House economic adviser Larry Kudlow on Sunday played down the increase in coronavirus cases and said the country has got to open. Kudlow attributed the rise of new cases seen in a number of states to an increase in testing.
Back home, domestic equity barometers slumped on Monday, as fears of a second wave of COVID-19 infections sent jitters across global stock markets. Several districts of China's capital Beijing closed schools and ordered people to be tested after an unexpected rise in infections linked to the biggest wholesale food market in Asia. The barometer S&P BSE Sensex tumbled 552.09 points or 1.63% at 33,228.80. The Nifty 50 index lost 159.20 points or 1.6% at 9,813.70.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,960.33 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,076.38 crore in the Indian equity market on 15 June, provisional data showed.
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