Benchmarks were trading firm near the day's high in morning trade. At 10:22 IST, the barometer index, the S&P BSE Sensex, rallied 307 points or 0.81% at 38,378.56. The Nifty 50 index added 85.25 points or 0.76% at 11,288.15. Pharma and IT stocks were in demand.
Shares across Asia got a boost after the US Federal Reserve kept interest rates near zero to support the country's virus-battered economy, sending the dollar to a two-year trough.
Sentiment also improved after the Indian government issued its latest 'Unlock 3' guidelines aimed at continuing some restrictions on people's movement while easing curbs on others.
In broader market, the S&P BSE Mid-Cap index gained 0.42% while the S&P BSE Small-Cap index was rallied 0.71%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1230 shares rose and 753 shares fell. A total of 109 shares were unchanged.
In the derivatives market, the July 2020 F&O contracts will expire today, 30 July 2020.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 16,978,206 with 666,239 deaths. India reported 5,28,242 active cases of COVID-19 infection and 34,968 deaths while 10,20,582 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Unlock 3.0 guidelines:
The Ministry of Home Affairs (MHA) on 29 July issued new guidelines for opening up of more activities in areas outside containment zones, as a part of Unlock 3.0, which will come into effect from 1 August. The Centre directed the states governments to allow/prohibit activities outside containment zones after proper assessment of the situation. As per the guidelines, yoga institutes and gymnasiums will be allowed to open from 5 August 2020. Schools, colleges and coaching institutions will remain closed till 31 August 2020.
Sebi Regulation:
Market regulator Sebi on Wednesday gave relaxation of one month till 15 September to listed companies for submitting their June quarter results amid coronavirus pandemic.
Earnings Today:
HDFC (down 0.17%) and Reliance Industries (up 0.16%) are two Nifty companies that will announce their quarterly results today.
Dredging Corporation of India (up 1.41%), GMR Infrastructure (down 0.89%), Laurus Labs (up 0.99%), Dabur (up 0.94%), Ajanta Pharma (up 0.83%), Cholamandalam Investment and Finance (down 1.8%), JM Financial (up 0.32%), Karur Vysya Bank (up 1.61%), Max Financial Services (up 0.44%), SRF (up 2.27%), Torrent Pharma (up 2.39%) and LT Foods (up 1.87%) are some of the companies that will announce their results today.
Earnings Impact:
Bharti Airtel up 1.15%. The telecom major reported a consolidated net loss of Rs 15,933 crore in the June quarter as against net loss of Rs 2,866 reported in the same period last year. Total revenues increased by 15.4% year-on-year (YoY) to Rs 23,939 crore during the quarter. EBITDA jumped 25.3% to Rs 10,639 crore in Q1 FY21 from Rs 8,493 crore in Q1 FY20. EBITDA margin stood at 44.4% as on 30 June 2020 as against 41% as on 30 June 2019. With respect to the mobile services-India business, the company said its average revenue per user (ARPU) rose 21.3% to Rs 157 in Q1 FY21 from Rs 129 in Q1 FY20. The company's total customer base increased by 4% to 41.9 crore customers in Q1 June 2020 from 40.3 crore customers in Q1 June 2019.
Airtel said that on 20 July 2020, the Supreme Court, after hearing all parties, observed that the amounts of AGR dues given by DoT is to be treated as final and there can be no scope of re-assessment or recalculation. Consequently, the company recorded a net exceptional charge of Rs 11,745.7 crore during the quarter ended 30 June 2020, comprising of a charge on account of incremental provision and interest on license fee and spectrum usage charges of Rs 10,744.4 crore and a net charge pertaining to re-assessment of levies of Rs 1,001.3 crore.
CEAT declined 1.41% to Rs 855.20 after the tyre manufacturer reported consolidated net loss of Rs 34.76 crore in Q1 June 2020 as compared to net profit of Rs 82.60 crore in Q1 June 2019. Total income fell 36.33% to Rs 1,126.46 crore in Q1 June 2020 over Q1 June 2019. CEAT reported an exceptional expense of Rs 21.8 crore in Q1 June 2020. Consolidated EBITDA fell 39% to Rs 105.5 crore in Q1 June 2020 from Rs 172.4 crore in Q1 June 2019. EBITDA margin declined to 9.4% in Q1 June 2020 from 9.8% in the same period last year.
TVS Motor Company down 0.26%. The auto maker's consolidated net loss of Rs 182.79 crore in Q1 June 2020 compared with net profit of Rs 151.24 crore in Q1 June 2019. Consolidated net sales slumped 61.3% to Rs 1,939.65 crore in Q1 June 2020 compared with Rs 5,018.34 crore in Q1 June 2019. Consolidated pre-tax loss stood at Rs 240.87 crore in Q1 June 2020 compared with pre-tax profit of Rs 231.53 crore in Q1 June 2019. The result was announced post trading hours yesterday, 29 July 2020.
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