Local stocks opened on a strong note on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 387.37 points or 0.98% at 39,854.68. The Nifty 50 index was up 111.75 points or 0.96% at 11,759.35. The Sensex hit day's high above the psychological 40,000 level in early trade. Upbeat global stocks boosted sentiment.
The S&P BSE Mid-Cap index was up 0.31%. The S&P BSE Small-Cap index was off 0.2%.
The market breadth, indicating the overall health of the market, is just about positive. On the BSE, 948 shares rose and 938 shares fell. A total of 120 shares were unchanged.
Q1 GDP data eyed:
On the macro front, the National Statistical Office is scheduled to release its estimates of gross domestic product (GDP) for the first quarter of this fiscal on 31 August 2020.
Unlock 4 guidelines:
Ministry of Home Affairs on Saturday released the Unlock 4 guidelines. Starting September 1, people will no longer need to get e-passes or register their details on government websites to travel anywhere within the country. Under Unlock 4, all activities and facilities except cinema halls, swimming pools, entertainment parks, theatres (excluding open air theatre) and similar places, will be allowed. It notified that schools, colleges and other educational institutions will remain closed up to September 30 in view of Covid-19 pandemic.
Stocks in news:
Shares of Reliance Industries (RIL) gained 1.31%. Reliance Retail Ventures (RRVL), subsidiary of RIL announced that it is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group as going concerns on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore, subject to adjustments as set-out in the composite scheme of arrangement (Scheme).
ITC rose 1.36%. The board of ITC will consider a proposal for amalgamation of Sunrise Foods, Hobbits International Foods and Sunrise Sheetgrah with the company. All three are wholly owned subsidiaries of ITC. The proposal will be taken up at a meeting fixed on 4 September 2020.
Indiabulls Ventures lost 4.7%. The board of directors of Indiabulls Ventures approved the preferential offer and issue of an aggregate of upto 3.36 crore equity shares, approx. 5.5% of the post preferential issue share capital of the company, at Rs 175 per share, for cash consideration, to certain foreign investors.
Wockhardt fell 1.63%. Wockhardt reported a consolidated net profit of Rs 760.06 crore in Q1 June 2020 from net loss of Rs 44.98 crore in Q1 June 2019. Total income surged 173.36% to Rs 2,076.54 crore.
RBL Bank rose 0.43%. Vishwavir Ahuja, the managing director (MD) and chief executive officer (CEO) of RBL 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.
Jammu & Kashmir Bank rose 1.53%. The board of J&K Bank approved raising of equity share capital upto Rs 3500 crore in one or more tranches through rights issue/preferential allotment/private placement/qualified institutional placement (QIP)/ESPSor any other approved mode. The board also approved raising upto Rs 1000 crore via non-convertible, redeemable, unsecured, basel III compliant, Tier 2 bonds in the nature of debentures on a private placement basis.
Time Technoplast lost 1.23%. The company reported a consolidated net loss of Rs 11.67 crore in Q1 June 2020 as against net profit of Rs 43.79 crore in Q1 June 2019. Revenue from operations declined 45.3% year-on-year (YoY) to Rs 475.20 crore during the quarter.
Global Markets:
Overseas, Asian stocks notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory for a protracted period.
China's factory activity grew at a slower pace in August. The official manufacturing Purchasing Manager's Index (PMI) fell slightly to 51 in August from 51.1 in July, data from the National Bureau of Statistics showed on Monday. It remained above the 50-point mark that separates growth from contraction on a monthly basis.
Japan's factory output rose for a second straight month in July. Ministry of Economy, Trade and Industry (METI) data showed Japan's industrial output grew 8% in July from the previous month, following a 1.9% increase in June.
South Korea's factory output grew for a second straight month in July. Industrial production in July rose by a seasonally-adjusted 1.6% from a month earlier, Statistics Korea said on Monday, down from 7.2% in June.
In US, stocks closed modestly higher Friday, with the Dow Jones Industrial Average erasing its losses for the year to date and the S&P 500 and Nasdaq indexes carving out fresh record closes.
The Dow Jones industrial average jumped 161.60 points, or 0.6 percent, to settle at 28,653.87, which put the blue-chip index in positive territory for the year and pulled it within a few percentage points of the all-time high set in February. Walmart and Coca-Cola led the way for the Dow, rising 2.7% and 3.3%, respectively.
The S&P 500 rose 23.46 points, or 0.7%, to close at 3,508.01. It was the index's first-ever close above 3,500. Tech and energy were the best-performing sectors in the S&P 500, gaining 1.1% and 1.9%, respectively. The Nasdaq Composite advanced 70.30 points, 0.6%, to 11,695.63.
On the data front, U.S. consumer spending rose 1.9% in July, the Commerce Department said. Personal income was also stronger than expected, rising 0.4%. The final reading of the University of Michigan's August consumer sentiment index came in at 74.1 versus a preliminary reading of 72.8 and up from 72.5 in July.
Back home, domestic equity benchmarks ended with significant gains on Friday after the US Federal Reserve said it might keep interest rates low even if inflation rises, in a major overhaul to its strategy. The barometer index, the S&P BSE Sensex, advanced 353.84 points or 0.90% at 39,467.31. The Nifty 50 index gained 88.35 points or 0.76% at 11,647.60.
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.
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