The equity market benchmarks ended with minor gains after a volatile trade on Friday. The barometer index, the S&P BSE Sensex added 14.23 points or 0.04% at 38,854.55. The Nifty 50 index advanced 15.20 points or 0.13% at 11,464.45.
TCS (up 1.81%), Infosys (up 0.58%) and Hindustan Unilever (up 1.16%) supported gains while HDFC Bank (down 1.11%) and HDFC (down 0.50%) dragged.
In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 0.52%.
The market breadth was positive. On the BSE, 1413 shares rose and 1271 shares fell. A total of 188 shares were unchanged.
The foreign ministries of China and India agreed in a joint statement on Friday that their troops must quickly disengage from a months-long standoff along their disputed Himalayan border. Chinese State Councilor and Foreign Minister Wang Yi, and Indian Foreign Minister Subrahmanyam Jaishankar met on the sidelines of a Shanghai Cooperation Organisation (SCO) foreign ministers' meeting in Moscow to try and end the dispute.
Separately, China's foreign ministry said it would maintain communications with India through diplomatic and military channels and commit to "restoring peace and tranquillity" in the disputed border area.
Economy:
In a statement released yesterday, the Ministry of Finance (MoF) said that it has constituted a three-member advisory committee headed by former CAG Rajiv Mehrishi on the relief sought by petitioners in the Supreme Court for the waiver of interest, penal interest and other related issues. Apart from Mehrishi, the committee includes former IIM Professor Ravindra Dholakia and former SBI MD B Sriram.
The expert committee has to measure the impact on the national economy and financial stability of waiving of interest and waiving of interest on interest on the COVID-19 related moratorium. It has to make suggestions to mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard.
"The committee will submit its report within one week. State Bank of India will provide secretarial support to the committee. The Committee may consult banks or other stakeholders, as deemed necessary, for the purpose," MoF said in a release.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 2,81,74,590 with 9,09,672 deaths. India reported 9,43,480 active cases of COVID-19 infection and 76,271 deaths while 35,42,663 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee edged higher to 73.535 compared with its previous closing 73.46.
The yield on 10-year benchmark federal paper rose to 6.042% compared with previous closing of 6.053% in the previous trading session.
MCX Gold futures for 5 October 2020 settlement slipped 0.55% to Rs 51,488.
In the commodities market, Brent crude for November 2020 settlement shed 14 cents to $39.92 a barrel. The contract fell 1.79% or 73 cents to settle at $40.06 in the previous trading sessions on Tuesday.
Global Markets:
US Dow Jones futures were up 131 points, indicating a strong opening for the US stock today.
Asian shares advanced on Friday. European shares were mixed as investors monitored tense negotiations between the UK and the European Union.
The EU on Thursday urged the UK to abandon its plan to renege on the Brexit Withdrawal Agreement and threatened legal action, but U.K. Prime Minister Boris Johnson's government has vowed to press ahead with its Internal Market Bill, despite acknowledgment that the move violates international law.
Meanwhile, the U.K. economy grew 6.6% in July 2020 on a monthly basis, according to initial estimates published on Friday. However, this represents a decline of 11.7% compared to the same period last year, data from the Office for National Statistics showed.
US stock market finished session deeply in the red on Thursday, 10 September 2020, as risk sentiments dented after the US Senate Republicans failed to advance a new coronavirus stimulus bill and simmering tensions between Washington and Beijing. Most of sectors declined, with tech stocks being notable losers amid increasing worry on Wall Street about a tech bubble, with those stocks fuelling the Nasdaq to record highs despite the coronavirus pandemic's hit to the economy.
US first-time claims for unemployment benefits came in at 884,000 in the week ended September 5th, the Labor Department revealed in a report on Thursday. The report said initial jobless claims came in unchanged from the previous week's revised level.
Buzzing Domestic Index:
The Nifty Auto index rose 0.15% to 7,956.80 after the data released by the Society of Indian Automobile Manufacturers (SIAM), an industry body, indicated a recovering trend for the auto industry.
TVS Motor Company, Hero MotoCorp, Tata Motors, Ashok Leyland, Escorts and Bajaj Auto were up 0.12% to 1.63%.
Maruti Suzuki India fell 0.56%. Japanese auto major Suzuki Motor Corporation (SMC) has increased its stake in Indian subsidiary Maruti Suzuki to 56.37% by purchasing shares from the market. Suzuki purchased 284,322 equity shares valued at 204.31 crore. Prior to the transaction, Suzuki held 56.28% in Maruti Suzuki.
As per the SIAM data, a total of 21,62,367 units, including passenger vehicles, three-wheelers, two-wheelers & quadricycle were produced in August 2020, as against 22,31,355 in August 2019, witnessing a decline of 3.09%.
Passenger vehicle sales in India increased by 14.16% in August to 2,15,916 units as against 1,89,129 units in the same month last year, auto industry body SIAM said on Friday.
Two-wheeler sales also rose 3% at 15,59,665 units, as compared to 15,14,196 units in the same month last year. Motorcycle sales were at 10,32,476 units as against 9,37,486 units in August 2019, up 10.13%. Scooter sales were, however, down 12.3% at 4,56,848 units as against 5,20,898 units in the same month last year.
Three-wheelers saw a dip in sales by 75.29% in August 2020 over August 2019. Sales of utility vehicles increased by 15.54% in August 2020 over August 2019.
Total exports of passenger vehicles, three-wheelers and two-wheelers witnessed a decrease of 45.17%, 13.61% and 14.23% respectively in August 2020 over August 2019.
Kenichi Ayukawa, PresIdent, SIAM said, "We are beginning to observe growth which is instilling confidence back into the industry, especially in the two-wheeler and the passenger vehicle segments. Even though the industry witnessed year-on-year growth in August 2020, it is to be recognized that the base figures in August 2019 itself was very low, as industry had shown a de-growth of about (-)32% for passenger vehicles and (-)22% for 2 wheelers in 2019, over 2018, then. Still, 14% growth of passenger vehicles and 3% growth in two wheelers in August 2020 indicates trends of recovery for the industry, though it is on the backdrop of pent-up demand and beginning of a festive season this month."
Stocks in Spotlight:
Yes Bank hit an upper circuit of 5% at Rs 14.61. The bank's chairman, Sunil Mehta, at the AGM held on Thursday informed that the bank has fully repaid Rs 50,000 crore towards the Special Liquidity Facility (SLF) extended by RBI, well before the due date. Addressing investor queries on whether the bank was going to be merged with State Bank of India (SBI) eventually, Mehta said that no such plans were afoot. He added that neither the bank nor any authority had discussed such a proposal as far as he knew.
Adani Green Energy hit an upper circuit of 5% at Rs 608.55 after the company reported a consolidated net profit of Rs 21.75 crore in Q1 June 2020 as against a net loss of Rs 97.44 crore in Q1 June 2019. Total income jumped 30% to Rs 878.14 crore in Q1 June 2020 from Rs 675.23 crore in Q1 June 2019. The company said it exported 1,382 million units in Q1 June 2020, 24% higher than 1,114 million units in Q1 June 2019.
Granules India tumbled 4.49% to Rs 344.90. The pharmaceutical company announced that its US subsidiary has received marketing approval from the USFDA for Dexmethylphenidate HCI extended-release capsules. The drug is used for the treatment of of attention-deficit hyperactivity disorder (ADHD) from the US Health Regulator (FDA). Granules' capsule product is bioequivalent to the reference listed drug (RLD), Focalin XR. Dexmethylphenidate HCI ER Capsules had US sales of approximately $556 million for the most recent twelve months ending in July 2020 (As per IQVIA MAT July 2020).
National Fertilizers (NFL) added 3.98% to Rs 36.60 after the company's total fertilizer sales rose 16% to 23.81 lakh MT in April-August 2020 over 20.57 lakh MT in April-August 2019. The company produced 16.11 lakh MT urea in the first five months of 2020-21, recording 13% jump against 14.26 lakh MT produced during the same period in 2019-20.
Hindustan Aeronautics (HAL) skid 1.43% to Rs 852.40. HAL's consolidated net profit dropped 74% to Rs 148.65 crore in Q1 June 2020 compared with Rs 564.69 crore in Q1 June 2019. net sales for Q1 June 2020 stood at Rs 1736.74 crore, a 47% decline compared with Rs 3289.47 crore in Q1 June 2019.
The company said it operations for the current quarter were impacted by the lockdown imposed to contain the spread of COVID-19. The Group's manufacturing facilities were shut down during April 2020. The activities resumed from 28th April 2020 with precautions, reduced availability of manpower and disrupted supply chain, resulting in lower turnover and consequent lower profit.
Goa Carbon fell 1.64% to Rs 213.30 after the company recorded a net loss of Rs 5.07 crore in Q1 June 2020 as against net loss of Rs 5.02 crore in Q1 June 2019. Net sales slumped 59.9% to Rs 55.62 crore in Q1 FY21 over Q1 FY20. Due to the absence of viable export and domestic orders, the company's Goa plant was shut for 36 days, Bilaspur plant for 35 days and Paradeep plant for 23 days during the quarter ended 30 June 2020.
Hindustan Copper surged 5.80% to Rs 37.40 after the company's consolidated net profit rose 40% to Rs 29.69 crore on 42% increase in net sales to Rs 431.43 crore in Q1 June 2020 over Q1 June 2019. The company said revenue during the quarter mainly include sales valuing Rs 324.54 crore on account of unsold year end closing stock.
Amber Enterprises India dropped 6.97% to Rs 1767.85. The board of Amber Enterprises India approved allotment of 22,47,191 equity shares to eligible qualified institutional buyers at an issue price of Rs 1,780 per equity share, aggregating to approximately Rs 400 crore. The qualified institutions placement (QIP) of equity shares opened on 7 September 2020 and closed on 10 September 2020.
IRCTC ended almost flat at Rs 1370.50. The company reported a net loss of Rs 24.60 crore in Q1 June 2020 as against a net profit of Rs 72.33 crore in Q1 June 2019. Revenue from operations slumped 71% to Rs 131.33 crore in Q1 June 2020 over Q1 June 2019. IRCTC posted a pre tax loss of Rs 29.38 crore in Q1 June 2020 as against a net profit of Rs 111.74 crore in Q1 June 2019. The company received a tax rebate of Rs 4.77 crore in Q1 June 2020.
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