Key domestic indices ended with minor gains after volatile session on Monday. As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 60.05 points or 0.16% at 38,417.23. The Nifty 50 index added 39.95 points or 0.35% at 11,373.80.
After hitting a low of 11,251.70 in early trade, the Nifty regained 11,300 mark in morning trade. However, gains were capped amid weak Asian cues triggered by rising tech tensions between Washington and Beijing.
In the broader market back home, the S&P BSE Mid-Cap index fell 0.78% while the S&P BSE Small-Cap index slipped 0.20%.
The market breadth was negative. On the BSE, 1230 shares rose and 1485 shares fell. A total of 198 shares were unchanged.
COVID-19 Update :
Total COVID-19 confirmed cases worldwide stood at 27,105,151 with 883,342 deaths. India reported 8,82,542 active cases of COVID-19 infection and 71,642 deaths while 32,50,429 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty IT index rose 0.63% to 18,187.75, outperforming other sectoral indices on the NSE. The index fell 1.50% on Friday.
HCL Technologies (up 1.16%), Wipro (up 1.01%), MindTree (up 0.98%) and Infosys (up 0.86%) were the top index gainers while Larsen & Toubro Infotech (down 2.53%) and Tech Mahindra (down 0.26%) were the top index laggards.
Earnings Today:
CG Power (down 1.81%), Info Edge (down 1.03%), General Insurance Corporation (up 0.69%) and Parag Milk Foods (up 1.08%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Goodyear India slumped 7.18% to Rs 947.95. The tyre maker posted a net loss of Rs 4.49 crore in Q1 June 2020 as against a net profit of Rs 26.25 crore posted in Q1 June 2019. Net sales declined 53.7% to Rs 226.93 crore in Q1 FY21 over Q1 FY20.
Jubilant Life Sciences tumbled 6.13% to Rs 778.75 after the company's consolidated net profit declined 52.4% to Rs 88 crore on 14% slide in net sales to Rs 1845.24 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin declined to 16.4% as on 30 June 2020 from 20.4% as on 30 June 2019.
NLC India rose 1.24% to Rs 52.90 after the company's consolidated net profit jumped 21% to Rs 343.41 crore on 29.6% increase in net sales to Rs 2,699 crore in Q1 June 2020 over Q1 June 2019. During the quarter, the group has recognised as an exceptional item, the one-time rebate of Rs 85.43 crore to DISCOMs on account of COVID-19 pandemic based on guidelines issued by Ministry of Power, Government of India.
Repco Home Finance hit an upper circuit of 5% at Rs 181.90 after the company's consolidated net profit rose 2.6% to Rs 64 crore on 4.1% increase in total income to Rs 341.92 crore in Q1 June 2020 over Q1 June 2019. The overall loan book rose 6% to Rs 11,979.50 crore at the end of June 2020 on comparison to Rs 11,342.10 crore at the end of June 2019. The capital adequacy ratio stood provisionally at 26.2% comprising entirely of Tier-1 capital. The minimum capital adequacy ratio prescribed by the National Housing Bank is 12.0%.
Stocks in Spotlight:
Larsen & Toubro (L&T) fell 1.26% to Rs 931. The construction major said its power transmission & distribution business secured large contracts. As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 crore and Rs 5,000 crore.
Vodafone Idea gained 3% to Rs 12.37. Rebranding itself, the company said that joint venture between Britain's Vodafone and India's Idea Idea Cellular will go by the brand name "Vi".
"Vi is built to be strong, ever-dependable, agile, intuitive, and a brand in tune with the needs of the customers, in these ever-changing times. It is designed to help customers move ahead in life, for a better today and a brighter tomorrow," the company said in a release.
Meanwhile, Ravinder Takkar, MD & CEO, Vodafone Idea, was quoted by the media as saying that telecom tariffs in India should go up and the telco is ready to take the first step. He added that the sector regulator also needs to look into tariff charts.
The telecom operator's board on Friday (4 September) approved plans to raise funds upto Rs 25,000 crore via combination of equity and debt issue.
Tata Consultancy Services (TCS) rose 1.61% to Rs 2326.65. TCS announced partnership with Transnet Port Terminals (TPT) in South Africa, part of Transnet SOC, a state-owned freight transport and handling company, to help the latter develop an integrated online marketplace platform by bringing together cargo owners, shipping lines, clearing and forwarding agents, and road/rail haulers.
IRCTC gained 3.84% to Rs 1418. IRCTC on Monday announced that Ministry of Railways has conveyed the decision to operate 40 pairs of Special Trains services to start from 12 September 2020 on specific routes. IRCTC further added that these services shall be in addition to the Shramik specials and the special trains, which are already under operation.
Global Markets:
The US Dow Futures were up 23.5 points, indicating a mildly positive start on Wall Street today.
European markets edged higher while most Asian stocks ended lower on Monday as markets recover from steep losses fueled by the tech sector last week.
Hong Kong-listed shares of Semiconductor Manufacturing International Corporation (SMIC), China's largest chip manufacturer, plunged on Monday following reports Trump's administration is considering imposing export restrictions on SMIC.
US stocks closed lower on Friday though well above its session low as selling eased late in the day after investors dumped heavyweight technology stocks due to concerns about high valuations.
US employment growth slowed further in August and permanent job losses increased as money from the government started running out. Nearly a fifth of the job gains reported by the Labor Department on Friday were from the government's temporary hiring for the 2020 Census. While the unemployment rate fell below 10%, it was biased down by a continuing misclassification problem.
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