Key equity barometers held firm near the day's high in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was up 646.47 points or 1.95% at 33,875.27. The Nifty 50 index was up 187.35 points or 1.91% at 10,001.05.
Sentiment was upbeat, tracking an overnight surge on Wall Street after the US Federal Reserve widened its corporate bond purchasing program to support financial markets. Investors, however, remained cautious amid surging cases of coronavirus infections.
In the broader market, the S&P BSE Mid-Cap index rose 1.52% while the S&P BSE Small-Cap index gained 1.50%. Both these indices lagged the Sensex.
The market breadth was strong. On the BSE, 1597 shares rose and 602 shares fell. A total of 115 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,960.33 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,076.38 crore in the Indian equity market on 15 June, provisional data showed.
Economic Data:
India's merchandise exports dipped 36.5% to US$ 19.05 billion in May 2020 over a year ago. Meanwhile, merchandise imports also declined 51.0% to US$ 22.20 billion. The trade deficit fell 79.5% to US$ 3.15 billion in May 2020 from US$ 15.36 billion in May 2019.
Merchandise exports in rupees plunged 31.1% to Rs 144166 crore, while imports rose declined 46.9% to Rs 167978 crore in May 2020 over May 2019. The trade deficit eased to Rs 23812 crore in May 2020 compared with Rs 107168 crore in May 2019.
As per the data released by the Reserve Bank of India, India's services exports declined 8.9% to US$ 16.45 billion in April 2020 over April 2019. Meanwhile, India's services imports dipped 18.4% to US$ 9.30 billion in April 2020.
India's services trade surplus improved 7.3% to US$ 7.15 billion in April 2020 from US$ 6.66 billion in April 2019.
Covid-19 Update:
India reported 1,53,178 active cases of COVID-19 infection and 9,900 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 80,18,742 far with 4,36,406 deaths, according to data from Johns Hopkins University.
Buzzing Index:
The Nifty IT index rose 1.74% to 9,984.85. The index lost 1.6% on Monday.
Infosys (up 3.32%), Oracle Financial Services Software (up 3.3%), TCS (up 1.34%), HCL Technologies (up 0.91%), Wipro (up 0.89%), MindTree (up 0.73%), Hexaware Technologies (up 0.57%) and Persistent Systems (up 0.47%) advanced.
Meanwhile, MphasiS (down 0.68%) and Tech Mahindra (down 0.2%) declined.
Earnings impact:
Shilpa Medicare rose 1.44% to Rs 572 after consolidated net profit jumped 48% to Rs 34.02 crore on 10.3% rise in net sales to Rs 219.99 crore in Q4 March 2020 over Q4 March 2019. Consolidated PBT rose jumped 45.5% to Rs 41.57 crore in Q4 March 2020 from Rs 28.58 crore in Q4 March 2019.
Narayana Hrudayalaya declined 2.03% to Rs 284.10 after consolidated net profit slumped 67.7% to Rs 11.99 crore on 2.9% fall in net sales to Rs 742.95 crore in Q4 March 2020 over Q4 March 2019.
Consolidated EBITDA stood at Rs 102.80 crore, reflecting a margin of 13.8% as against Rs 96.80 crore in Q4FY19, translating into a YoY growth of 6.2%.
The group has carried out an impairment assessment of one of its cash generating units, Dharamshila Narayana Super Speciality Hospital (CGU), one of the subsidiaries of Narayana Hrudayala continued incurring losses and more importantly the relatively weaker forecasts due to COVID-19. Hence, the group has recorded an impairment of Rs 10.87 crore during the quarter and year ended 31 March 2020 and has disclosed as an exceptional item.
Global Markets:
Overseas, Asian stocks edged higher on Tuesday led by Japanese shares as investors reacted to announcements by Japan's central bank.
The Bank of Japan (BoJ), in a statement announcing its monetary policy decision, said that Japan's economy is likely to remain in a severe situation for the time being due to the impact of COVID-19 at home and abroad, although economic activity is expected to resume gradually.
"For the time being, the bank will closely monitor the impact of COVID-19 and will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels," the BoJ said.
In US, stocks benchmarks closed higher Monday, booking a sharp turnaround after the Federal Reserve took further steps to keep credit flowing to big businesses during the pandemic, amid signs of a resurgence of the deadly COVID-19 pandemic in parts of the world.
The US Fed said it will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF). The Fed will use an indexing approach when making purchases, aiming to create a portfolio that is based on a broad, diversified market index of US corporate bonds.
"This index is made up of all the bonds in the secondary market that have been issued by US companies that satisfy the facility's minimum rating, maximum maturity and other criteria," the Fed said in a statement Monday. "This indexing approach will complement the facility's current purchases of exchange-traded funds."
Meanwhile, increases in infections in Florida and Texas have raised fears about the success of efforts to gradually reopen the U.S. economy, with phased restarts of business activity in all 50 states.
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