Key equity barometers continued to trade higher in mid-morning trade, supported by firm Asian cues. Auto stocks extended gains for second day. The sentiment was upbeat as more businesses resumed operations after coronavirus lockdowns, although gains were limited amid rising domestic COVID-19 cases.
At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 185.62 points or 0.48% at 38,620.34. The Nifty 50 index added 56.95 points or 0.50% at 11,428.55.
In the broader market, the S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index gained 1.48%. Both these indices outperformed the Sensex.
The market breadth was strong. On the BSE, 1565 shares rose and 968 shares fell. A total of 148 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 23,421,944 with 808,681 deaths. India reported 7,10,0771 active cases of COVID-19 infection and 57,542 deaths while 21,58,946 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Auto index added 1.08% to 8,020.15, advancing for second day in a row. The index has added 1.37% in two sessions.
Eicher Motors (up 7.18%), Bharat Forge (up 1.82%) and Bajaj Auto (up 1.09%) were the top index gainers.
Ashok Leyland (down 1.87%), Mahindra & Mahindra (down 0.71%), TVS Motor Company (down 0.25%), Tata Motors (up 0.33%) and Hero MotoCorp (up 0.51%) were the top index laggards.
Stocks in Spotlight:
ICICI Lombard General Insurance Company fell 1.14% to Rs 1278.10. The company and Bharti AXA General Insurance Company have signed agreements to combine their non-life insurance businesses.
Based on the share exchange ratio accepted by the respective boards of the two companies, the shareholders of Bharti AXA shall receive 2 shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date of the approval of the proposal by the two respective boards. The proposed transaction provides a meaningful opportunity for ICICI Lombard to consolidate its market leading position in the non-life insurance sector, becoming the third largest non-life insurer. The combined entity shall have a market share of approximately 8.7% on pro-forma basis with annual premiums aggregating to Rs 16,447 crore.
The Phoenix Mills jumped 4.28% to Rs 726.80 after the company said it raised about Rs 1,100 crore through qualified institutions placement (QIP) of 1.81 crore equity shares at Rs 605 each. The QIP issue opened on 18 August 2020 and closed on 21 August 2020. Phoenix Mills allotted 74.38 lakh shares (or 40.91% of the total shares offered in the issue) to Government of Singapore, 12.39 lakh shares (or 6.82% of the total shares offered in the issue) to ICICI Prudential Mutual Fund, 12.39 lakh shares (or 6.82% of the total shares offered in the issue) to SBI Mutual Fund and 9.39 lakh shares (or 5.17% of the total shares offered in the issue) to Aditya Birla Sun Life Mutual Fund.
Granules India rose 1.38% to Rs 319.25 after the US drug regulator approved the Abbreviated New Drug Application (ANDA) filed by the company's subsidiary for Ramelteon tablets. The tablets are used for the treatment of insomnia characterized by difficulty with sleep onset. According IQVIA Health, Ramelteon Tablets had a US sales of approximately $33 million MAT for the most recent twelve months ending in June 2020.
Global Markets:
Asian stocks advanced on Monday as investors weigh the latest financial, geopolitical and coronavirus news worldwide.
Meanwhile, the Dow Jones 30 Futures were currently trading 132 points higher, indicating a higher start to the U.S. market.
On Sunday, the U.S. Food and Drug Administration issued an emergency use authorization of convalescent plasma for hospitalized COVID-19 patients, a treatment that uses blood plasma donated by people who've recovered from the virus. President Donald Trump said that the plasma treatment cuts mortality rate by 35%.
Meanwhile, U.S. President Donald Trump's administration is reportedly considering fast tracking an experimental coronavirus vaccine developed in the U.K. for use stateside ahead of the nation's upcoming presidential election.
The US stocks finished session firmly in positive territory on Friday, 21 August 2020, with the Nasdaq and the S&P 500 hit a record high, after the release of a report from IHS Markit showing U.S. business activity expanded at the fastest pace in over a year in the month of August. Adding to the positive sentiment, the National Association of Realtors released a report showing U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.
The IHS Markit flash composite index of purchasing managers at manufacturers and service providers climbed to an eighteen-month high of 54.7 in August from 50.3 in July. The increase by the index came as the IHS Markit reading on manufacturing activity reached a nineteen-month high, while the reading on service sector activity indicated growth for the first time since January.
US existing home sales continued to soar in the month of July, the National Association of Realtors revealed in a report released on Friday. NAR said existing home sales skyrocketed by a record 24.7% to an annual rate of 5.86 million in July after spiking by 20.2% to a revised rate of 4.70 million in June. With the continued surge, existing home sales in July were up by 8.7% compared to the same month a year ago.
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