Key indices are trading higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 210.08 points or 0.54% at 39,323.55. The Nifty 50 index was up 59.50 points or 0.51% at 11,618.75.
The S&P BSE Mid-Cap index was up 0.92%. The S&P BSE Small-Cap index was up 0.64%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1277 shares rose and 573 shares fell. A total of 90 shares were unchanged.
GST Council meeting outcome:
At the 41st GST Council meet on Thursday, Finance Minister Nirmala Sitharaman gave states two options to bridge the funding gap created due to economic losses caused by COVID-19. States have been demanding compensation from the government to meet the shortfall in revenue caused by lockdowns to curb spread of COVID-19. The compensation gap of Rs 2.35 lakh crores this year is due to COVID-19 as well and the shortfall in compensation due to the implementation of GST has been estimated to be Rs 97,000 crores.
In a big push for 'Make in India' for the defence sector, Finance Minister Nirmala Sitharaman yesterday announced raising the Foreign Direct Investment (FDI) limit in the defence sector under the automatic route from 49% to 74%. She also said that the import of some weapons and platforms will not be allowed.
Stocks in news:
Mahindra & Mahindra (M&M) rose 0.44%. M&M yesterday announced the introduction of the Marazzo with BSVI technology. Marazzo, India's safest MPV, will now be available with a BSVI-compliant powertrain at a starting price of Rs. 11.25 lakh.
NMDC jumped 8.28%. NMDC reported 54.67% fall in net profit to Rs 531.01 crore on 40.67% fall in total income to Rs 2,009.27 crore in Q1 June 2020 over Q1 June 2019.
GMR Infrastructure advanced 3.86%. GMR Infrastructure reported consolidated net loss of Rs 833.87 crore in Q1 June 2020 as against net loss of Rs 336.12 crore in Q1 June 2019. Total income fell 44.49% to Rs 1,224.44 crore.
PNC Infratech rose 2.57%. PNC Infratech reported 48.6% fall in net profit to Rs 91.75 crore on 29.78% fall in total income to Rs 1,123.09 crore in Q1 June 2020 over Q1 June 2019.
Edelweiss Financial Services rose 0.18%. The company reported consolidated net loss of Rs 245.08 crore in Q1 June 2020 as against net profit of Rs 132.02 crore in Q1 June 2019. Total income fell 25.65% to Rs 1,919.68 crore.
Hindustan Construction Company lost 5.36% after the company reported consolidated net loss of Rs 409.26 crore in Q1 June 2020 as against net profit of Rs 99.74 crore in Q1 June 2019. Total income fell 39.98% to Rs 1,689.82 crore.
Global Markets:
Overseas, most Asian stocks are trading higher on Friday after U.S. stocks scaled new peaks for a third straight day.
In US, the S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve's new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.
Setting out the central bank's aggressive new strategy at a virtual Jackson Hole symposium, Fed chief Jerome Powell said it would offset below-2% periods with higher inflation for some time, and ensure employment doesn't fall short of its maximum level.
Data on Thursday showed weekly jobless claims hovered around 1 million last week, suggesting the labor market recovery was stalling.
Back home, domestic equity benchmarks ended a tad above the flat line on Thursday, with banks leading the gains. Select real estate stocks jumped after Maharashtra reduced stamp duty rates on apartments in the state. Trading was volatile due to monthly F&O expiry. The barometer index, the S&P BSE Sensex, advanced 39.55 points or 0.10% at 39,113.47. The Nifty 50 index gained 9.65 points or 0.08% at 11,559.25.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,164.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 809.27 crore in the Indian equity market on 27 August, provisional data showed.
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