The equity barometers traded in a narrow range with decent gains in mid-morning trade. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 118.71 points or 0.31% at 38,429.20. The Nifty 50 index added 31.70 points or 0.28% at 11,332.15.
In the broader market, the S&P BSE Mid-Cap index rose 0.41% while the S&P BSE Small-Cap index gained 0.65%.
The market breadth was positive. On the BSE, 1317 shares rose and 1026 shares fell. A total of 136 shares were unchanged.
Economy:
India's retail inflation stood at 6.93% for the month of July as against 6.23% in the month-ago period, data released yesterday showed. The consumer price index (CPI)-based inflation rate for June has been revised from 6.09% to 6.23%.
Earnings Impact:
Bharat Petroleum Corporation (BPCL) fell 0.42% to Rs 419.45. The PSU OMC reported a 93% jump in standalone net profit to Rs 2076.17 crore on 41% decline in revenue from operations to Rs 50,616.92 crore in Q1 June 2020 over Q1 June 2019.
BPCL's profit before tax came 2,926.17 crore in Q1 June 2020, a rise of 116% over Rs 1,351.78 crore in Q1 June 2019. Total tax expense for quarter ending June 2020 stood at Rs 850 crore, a 207% rise against Rs 276.66 crore in quarter ending June 2019.
The average Gross Refining Margin (GRM) of BPCL during the quarter ended June 2020 fell 86% to $0.39 per barrel from $2.81 per barrel posted in April - June 2019.
Tata Steel shed 0.12% at Rs 412.75. The steel major reported consolidated net loss of Rs 4,648.13 crore in Q1 June 2020 as against net profit of Rs 714.03 crore in Q1 June 2019. Net sales slumped 32.7% to Rs 23,812.50 crore in Q1 FY21 over Rs 35,382.16 crore in Q1 FY20.
Tata Steel's operating level has recovered to 90% by end June 2020 and has since then increased further to 95%, catering to both domestic and export customers. With the improvement in the domestic market, Tata Steel has been reducing its exports ratio. The price outlook in both export and domestic market continues to improve on month on month basis and the current quarter demand has been much better than a typically slow monsoon quarter in the past.
Global Markets:
Most Asian markets advanced on Friday as investors shrugged off concerns over the US coronavirus stimulus bill.
The US stock market finished session lower on Thursday, 13 August 2020, as investors elected to book profit after hitting 6-month highs yesterday. Meanwhile, selloff fueled further on concern over a stalled US economic relief deal and as weekly jobless claims dipped below 1 million for the first time in four months, though they remain at historically high levels.
Initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March but the expiration of a $600 weekly jobless supplement at the end of July likely contributed to the decline. Data last week showed the economy has regained only 9.3 million jobs of the 22 million jobs lost between February and April, indicating that it faces a long road to reach pre-pandemic levels.
Meanwhile, lawmakers in the United States appear to be at an impasse over the next round of coronavirus aid and an agreement on legislation and passage of a bill looks to be weeks away.
U.S. House Speaker Nancy Pelosi has said she will not restart talks with Republicans on the matter until they increase their aid offer by $1 trillion. White House economic advisor Larry Kudlow reportedly said that the administration and Democrats were at a stalemate.
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