Local stocks drifted higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 294.70 points or 0.78% at 38,028.78. The Nifty 50 index was up 77.75 points or 0.7% at 11,231.40. The Sensex regained the 38,000 level in early trade. Earlier, indices fell for fourth day in a row till Tuesday.
The S&P BSE Mid-Cap index was up 0.66%. The S&P BSE Small-Cap index was up 1.23%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1191 shares rose and 318 shares fell. A total of 54 shares were unchanged.
Stocks in news:
Reliance Industries (RIL) gained 2.3%. RIL and Reliance Retail Ventures (RRVL) announced today that global investment firm KKR will invest Rs 5,550 crore into RRVL, a subsidiary of RIL. This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. KKR's investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis.
Tata Consultancy Services (TCS) fell 0.72%. TCS announced that it is using its new AI software, IUX for Workplace Resilience, to minimize the risks for its employees and ensure their safety, should their responsibilities require some of them to be in the office during the pandemic.
Sun Pharmaceutical Industries rose 1.25%. Sun Pharmaceutical Industries and its subsidiaries and/or associate companies today announced that its wholly-owned Japanese subsidiary has launched ILUMYA Subcutaneous Injection 100 mg Syringe (Nonproprietary name: tildrakizumab (genetical recombination), ILUMYA) in Japan for the treatment of plaque psoriasis in adult patients who have an inadequate response to conventional therapies.
HCC jumped 8.58%. HCC said that its infrastructure development arm HCC Concessions completed its 100% sale of Farakka-Raiganj Highways (FRHL) to Cube Highways and Infrastructure II Pte (Cube Highways).
PNB Gilts rose 1.22%. PNB Gilts said it has has fully redeemed and paid the redemption proceeds of the Commercial Paper (CPs) for an amount of Rs 400 crore.
Sequent Scientific advanced 4.72%. Sequent Scientific said the company will acquire 40% stake in Provet through Alivira Animal Health, Ireland, wholly-owned subsidiary of the company.
Global Markets:
Overseas, Asian stocks are trading higher on Wednesday after tech-fueled Wall Street gains.
Japan's factory activity extended declines in September largely due to a sharper fall in output. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) was largely unchanged at 47.3 in September compared with a final 47.2 in the previous month.
In US, Wall Street stocks rebounded on Tuesday, led by a jump in Amazon.com, even as a likely delay in new fiscal stimulus by Congress and an increase in the number of coronavirus cases dampened hopes of a faster economic recovery.
Fed Chair Jerome Powell on Tuesday told a congressional panel that the economy had shown marked improvement since the pandemic drove it into recession, but the path ahead remains uncertain and the U.S. central bank will do more if needed.
Chicago Fed President Charles Evans also warned that the economy risks a longer, slower recovery, if not another outright recession, if Congress fails to pass more stimulus.
Developments surrounding the coronavirus pandemic could also weigh on investor sentiment, with U.K. Prime Minister Boris Johnson on Tuesday reversing the lifting of some lockdown measures in England. That came following a surge in coronavirus cases in the country.
Back home, the benchmark indices extended losses for the fourth session on Tuesday. Investors sentiment was dented as rising coronavirus cases led to the possibility of fresh lockdowns in some European countries, which could further slowdown the pace of global economic recovery. The barometer index, the S&P BSE Sensex, tumbled 300.06 points or 0.79% at 37,734.08. The Nifty 50 index lost 96.90 points or 0.86% at 11,153.65.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,072.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 878.91 crore in the Indian equity market on 22 September, provisional data showed.
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