The domestic equity barometers ended flat with some positive bias on Friday. Market remained choppy throughout the session amid weak global cues ahead of the European Central Bank (ECB) meet outcome due later today. Media, IT and FMCG shares advanced while banks shares declined.
The barometer index, the S&P BSE Sensex, advanced 54.81 points or 0.09% to 58,305.07. The Nifty 50 index added 15.75 points or 0.09% to 17,369.25.
Bharti Airtel (up 2.77%), Nestle India (up 2.39%), Tata Steel (up 1.23%) and ITC (up 0.71%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index rose 0.56% while the S&P BSE Small-Cap index gained 0.52%. Both these indices outperformed the benchmark indices.
The market breadth was positive. On the BSE, 1844 shares rose and 1345 shares fell. A total of 161 shares were unchanged.
The domestic stock market will remain closed tomorrow, 10 September 2021, on account of Ganesh Chaturthi.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 22,25,68,068 with 45,96,463 deaths. India reported 3,93,614 active cases of COVID-19 infection and 4,41,749 deaths while 3,23,04,618 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
S&P Economist for Asia Pacific, Vishrut Rana, speaking at the 'India Credit Spotlight 2021', said, Looking ahead we continue to expect fairly strong economic growth going into calendar Q3 and Q4.
He made this statement even as he listed out the challenges the economy is likely to face in the second half of the FY. The second wave of the pandemic has been pretty costly to economic activity. Households have been affected . households are going to be repairing their balance sheets and withholding from spending which means activity will remain below trend once the recovery gets underway, said Rana.
He added, The outlook is mixed and energy prices are likely to remain elevated but the real influential element in the inflation basket is going to be food. We have monsoon rains below normal so far which could lead to rise in food inflation. Overall inflation is likely to remain elevated and prevent the central bank from taking too much easing measures.
Given India's weak fiscal settings and high stock of debt around 90% of GDP, the nominal GDP growth is going to be very important to prevent any further erosion of fiscal settings in the country and to enable some degree of fiscal consolidation going forward, S&P Global Ratings Director (Sovereign) Andrew Wood said.
Meanwhile, Indian government and the Asian Development Bank (ADB) on Wednesday signed a $300 million loan as additional financing to scale up improvement of rural connectivity to help boost rural economy in Maharashtra. The additional financing for the ongoing Maharashtra Rural Connectivity Improvement Project will help improve an additional 1,100 rural roads and 230 bridges for a total length of 2,900 kilometers in 34 districts.
The Ministry of Finance in a statement said with the additional financing, the overall project will improve the condition and safety of five thousand kilometer of rural roads and over 200 bridges connecting rural communities.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 73.5050 from its previous closing of 73.6050.
MCX Gold futures for 5 October 2021 settlement shed 0.22% to Rs 46,935.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% at 92.55.
In the commodities market, Brent crude for October 2021 settlement rose 17 cents or 0.23% to $72.77 a barrel.
The yield on 10-year benchmark federal paper fell to 6.180% from its previous close of 6.188%.
Global Markets:
US Dow Jones index futures were down 95 points, indicating a weak opening in the US stock market today.
European stocks declined across the board while Asian stocks ended mixed on Thursday, 9 September 2021, as investors continue to fret over a slowdown in the recovery from the pandemic.
Global investors watched for announcements from the European Central Bank on Thursday. Market players are keen to hear ECB's outlook on inflation, interest rates and hints on when it might start tapering its massive asset-purchase program.
In Asia, China's consumer price index rose 0.8% year-on-year in August. Meanwhile, the producer price index jumped 9.5% from a year ago.
In the US, Wall Street ended lower on Wednesday, spooked by worries that the Delta coronavirus variant could blunt the economy's recovery and on uncertainty about when the US Federal Reserve may pull back its accommodative policies.
Meanwhile, the Federal Reserve said in its latest "Beige Book" that U.S. businesses are experiencing rising inflation that is being intensified by a shortage of goods and likely will be passed onto consumers in many areas.
The Fed also reported that growth overall had "downshifted slightly to a moderate pace" amid rising public health concerns during the July through August period that the report covers. The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions, the report said.
Buzzing Indian Segment:
The Nifty Media index rose 2.97% to 1,701.45. The index fell 0.64% yesterday. The index has jumped 6.23% so far in September 2021.
DishTV India (up 19.73%), Zee Entertainment Enterprises (up 3.04%), PVR (up 1.98%), Sun TV Network (up 1.41%) and D B Corp (up 0.9%) advanced.
Stocks in Spotlight:
UCO Bank soared 10.69% to Rs 14.18. after the Reserve Bank of India (RBI) on Wednesday announced that it has removed the state-owned lender from prompt corrective action (PCA) restrictions.
SBI Life Insurance Company tumbled 3.86% to Rs 1172.80, amid block deal buzz. On the BSE, 2.39 crore shares of the company were traded in the counter so far as against an average trading volume of 1.52 lakh shares in the past one month.
According to media reports, Canada Pension Plan Investment Board (CPPIB) is set to sell nearly 2.3 crore shares of the insurance company equalling 2.3% equity, for around Rs 2,800 crore in a block deal. CPPIB held 2.85 crore shares (equivalent to 2.86% stake) of the company as on 30 June 2021.
Zensar Technologies gained 3.89%. The company partnered with FRISS, the provider of AI-powered end-to-end fraud prevention and detection solutions for P&C insurers worldwide. The strategic partnership will enable Zensar's clients to access the latest market-ready AI, a multitude of data sources and unparalleled customer service directly through FRISS.
Blue Dart Express added 0.54%. The company partnered with drone delivery startup Skye Air to flag off the first drone flight for Telangana Government's ambitious project - 'Medicine from the Sky'. The drone delivery trials for delivery of medicines and vaccines will be held in Vikarabad, Hyderabad from 9th September till 17th October, the company said.
Rain Industries soared 6.12%. The company said its US-based subsidiary, Rain Carbon, has resumed calcined petroleum coke (CPC) production at three of its US facilities. "The restart process has begun at a fourth plant that was impacted by Hurricane Ida, which hit the Gulf Coast on August 29," the company said in a statement.
Godawari Power & Ispat hit an upper circuit of 5% at Rs 1,097.05 after the company said that its board will consider a stock split and bonus issue of shares on Tuesday, 14 September 2021. Further, the board will re-consider the scheme of arrangement of Godawari Power and Ispat with Jagdamba Power and Alloys.
Central Depository Services (India) hit an upper circuit of 5% at Rs 1,321.45 after the company's subsidiary received the approval from The Controller of Certifying Authorities (CCA) to provide eSign services to Application Service Providers, based on online Aadhaar eKYC.
TCS rose 0.47%. The IT firm has been selected by Transport for London (TfL) to design, implement and operate a new smart mobility system that will reimagine the administration of taxi and private hire vehicles in London. Over the course of the ten-year contract - which also has the opportunity for a five-year extension - TCS will digitally transform taxi and private hire licensing and administration, as well as implement continuous improvements and innovation, responding to evolving industry trends and customer demands.
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