The benchmark indices further extended gains and hit fresh intraday high in early afternoon trade. The Nifty traded above the 15,800 level. Bargain hunting emerged after the Sensex and the Nifty corrected over 1.8% in the past three sessions.
At 12:20 IST, the barometer index, the S&P BSE Sensex, surged 616.37 points or 1.18% at 52,814.88. The Nifty 50 index soared 180 points or 1.15% at 15,812.10.
In the broader market, the S&P BSE Mid-Cap index rose 0.85% while the S&P BSE Small-Cap index added 1.85%.
The market breadth was strong. On the BSE, 2,238 shares rose and 857 shares fell. A total of 149 shares were unchanged.
Economy:
The Asian Development Bank (ADB) has downgraded India's economic growth forecast for the current financial year to 10% on Tuesday, from 11% projected earlier this year, mainly on account of the adverse impact of the coronavirus pandemic.
India's GDP growth recovered to 1.6% in the last quarter of fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8% estimated in April to a revised 7.3%, the multilateral funding agency said in the Asian Development Outlook (ADO) Supplement.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 19,20,05,075 with 41,27,062 deaths. India reported 4,09,394 active cases of COVID-19 infection and 4,18,987 deaths while 3,04,29,339 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Single day rise of 41,383 COVID-19 infections, 507 fatalities push India's tally of cases to 3,12,57,720, death toll to 4,18,987, says heath ministry.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 7.21% to 12.2525. The Nifty 29 July 2021 futures were trading at 15,821.05, at a premium of 8.95 points as compared with the spot at 15,812.10.
The Nifty option chain for 29 July 2021 expiry showed maximum Call OI of 32.6 lakh contracts at the 16,000 strike price. Maximum Put OI of 35.9 lakh contracts was seen at 15,000 strike price.
Buzzing Index:
The Nifty Financial Services index rose 1.66% to 16,563.15. The index fell 3.74% for the past three sessions, till yesterday.
Muthoot Finance (up 4.79%), Bajaj Finance (up 4.57%), ICICI Lombard General Insurance Company (up 3.14%) were the major gainers in the Financial Services segment.
ICICI Prudential Life Insurance Company jumped 6.37%. The life insurance company reported a net loss of Rs 185.29 crore in Q1 FY22 as against net profit of Rs 286.86 crore in Q1 FY21. The company had posted a net profit of Rs 62.51 crore in Q4 FY21. Total income declined 12.2% to Rs 16,724.05 crore in Q1 FY22 over Q1 FY21. Sequentially, the company's total income declined 14.8%. While the company's net premium income has risen by 18.9% to Rs 6,601.85 crore, net income from investments have declined by 29.5% to Rs 9,210.27 crore in Q1 FY22 over Q1 FY21. The company's net premium income declined 44.4% in Q1 FY22 from Rs 11,879.28 crore recorded in Q4 FY21.
Bajaj Finserv advanced 2.85%. The NBFC posted a 31.47% fall in net profit to Rs 832.77 crore on 1.7% decline in total income to Rs 13,949.45 crore in Q1 FY22 over Q1 FY21. On a sequential basis, the NBFC's net profit declined 15% while total income fell 9.3% in Q1 FY22 over Q4 FY21. Profit before tax declined 25% quarter-on-quarter and 31.19% year-on-year to Rs 1767.10 crore in Q1 FY22.
Stock in Spotlight:
Bharti Airtel rose 0.18%. The telecom major has announced a collaboration with Intel for 5G network development by leveraging vRAN/O-RAN technologies. The collaboration is part of Airtel's 5G roadmap for India as it transforms its networks to allow its customers to reap the full possibilities of the hyperconnected world where Industry 4.0 to cloud gaming and virtual / augmented reality become an everyday experience. Airtel is the first telecom operator in India to demonstrate 5G over a LIVE network and is conducting 5G trials in major cities. The teleco will deploy Intel's latest 3rd gen Xeon Scalable processors, FPGAs and eASICs, and Ethernet 800 series across its network to build a solid foundation for rolling out wide-scale 5G, mobile edge computing and network slicing.
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