At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 92.05 points or 0.24% at 38,848.31. The Nifty 50 index was up 33.1 points or 0.29% at 11,473.15.
The broader market advanced for second trading session after the Sebi on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index was up 0.63% while the S&P BSE Small-Cap index rose 0.99%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1289 shares rose and 1041 shares fell. A total of 146 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 298.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 120.35 crore in the Indian equity market on 14 September, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 29,190,588 with 9,27,245 deaths. India reported 9,90,061 active cases of COVID-19 infection and 80,776 deaths while 38,59,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
India's retail inflation which is measured by the Consumer Price Index (CPI) eased to 6.69% in the month of August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The CPI for the month of July was revised to 6.73% from 6.93%.
The Scheduled commercial banks (SCBs) credit growth was steady on sequential basis to 5.5% YoY to Rs 1,02,11,730 crore as on 28 August 2020, compared with 5.5% growth a fortnight ago. The credit growth has decelerated from 10.2% at end July 2019. Aggregate deposits growth of the scheduled banks increased 10.9% YoY at Rs 1,41,76,765 crore as on 28 August 2020, compared with 11.0% growth a fortnight ago and 9.7% rise a year ago.
RBI Mandates Automated Recognition of NPAs:
The Reserve Bank of India (RBI) on Monday mandated the automation of bad-loan recognition by banks by 30 June 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly. In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements. The system-based asset classification shall be an ongoing exercise for both downgradation and upgradation of accounts.
Buzzing Index:
The Nifty Metal index gained 0.53% to 2,399.60. The index has risen 1.26% in three sessions.
Apl Apollo (up 4.21%), Hindalco Industries (up 1.42%), Hindustan Zinc (up 1.23%), Tata Steel (up 1.11%), JSW Steel (up 0.74%), Vedanta (up 0.23%) and Jindal Steel & Power (up 0.17%) advanced.
Earnings Impact:
Raymond slumped 0.97% after the company reported a consolidated net loss of Rs 242.15 crore in the June quarter as compared to a net loss of Rs 14.85 crore recorded in the same period last year. Net sales slumped 88.6% year-on-year (YoY) to Rs 163.16 crore during the quarter. The company has undertaken cost rationalization & various cost control measures relating to sales & marketing, manpower, rentals and others. This has resulted in operating cost at Rs 275 crore, lower by 50% on a sequential basis from Rs 551 crore in Q4FY20 and lower by 44% on a YoY basis from Rs 494 crore in Q1FY20.
JB Chemicals & Pharmaceuticals soared 11.13% after the company's consolidated net profit surged 92.4% to Rs 119.51 crore on 17.1% increase in net sales to Rs 522.29 crore in Q1 June 2020 over Q1 June 2019. The business performance during the quarter improved due to a 18% growth in revenue coupled with an increase in other income (primarily from current investments) and a better product mix with savings in some heads of expenditure on account of the current situation due to the COVID-19 pandemic.
Global Markets:
Selective Asian markets were trading higher today as investors watched China's economic data for August.
Retail sales rose 0.5% in August from a year ago, the first positive report for the year so far, China's National Bureau of Statistics said Tuesday. Still, retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said.
Meanwhile, industrial production in the country grew 5.6% in August from a year ago while fixed-asset investment declined 0.3% for the first eight months of the year.
US stocks ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism. Tech sentiment was lifted by news of Nvidia buying chipmaker Arm Holdings from SoftBank for $40 billion.
Meanwhile, ByteDance rejected Microsoft's bid to buy TikTok's U.S. operations. Instead, ByteDance has chosen Oracle to be TikTok's U.S. technology partner, and Oracle will take a significant stake in the business.
Sentiment was also boosted by signs of progress toward a coronavirus vaccine. AstraZeneca resumed phase three trials for its coronavirus vaccine in the U.K. following a halt due to safety concerns. However, its trials in the U.S. remains on hold as American regulators investigate the side effects flagged in the U.K. study, reports showed.
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