Key barometers ended with strong gains on Friday, extending their winning streak for third consecutive session. Significant buying in the final hour of trade pushed the indices near their day's high. Positive global cues supported buying in domestic shares.
The barometer S&P BSE Sensex surged 548.46 points or 1.50% at 37,020.14. The Nifty 50 index jumped 161.75 points or 1.51% at 10,901.70. Both these indices jumped over 2.7% in three sessions.
The Nifty managed to close above its 200-day simple moving average placed at 10,868.81.
Reliance Industries (up 3.70%), HDFC Bank (up 3.46%), ICICI Bank (up 2.64%) and Hindustan Unilever (up 1.96%) were major index movers.
In the broader market, the S&P BSE Mid-Cap index rose 1.55% while the S&P BSE Small-Cap index gained 1.11%.
Buyers outnumbered sellers. On the BSE, 1,645 shares rose and 998 shares fell. A total of 156 shares were unchanged.
Coronavirus Update:
India reported 3,42,473 active cases of COVID-19 infection and 25,602 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 13,808,626 with 589,978 deaths so far, according to data from Johns Hopkins University.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 5.807% compared with previous closing of 5.813% in the previous trading session.
In the foreign exchange market, the partially convertible rupee edged lower to 75.02 compared with its previous closing 75.18.
In the commodities market, Brent crude for September 2020 settlement slipped 30 cents to $43.07 a barrel. The contract lost 0.96% or 42 cents to end at $43.79 in the previous trading session .
MCX Gold futures for 5 August 2020 settlement rose 0.09% to Rs 48,815.
Global Markets:
Most shares in Europe and Asia advanced on Friday. European leaders will meet in Brussels on Friday looking to hash out a deal on the proposed 750 billion euro ($853.8 billion), which could face opposition from the "frugal four" member states.
In Asia, Singapore's trade data reportedly released on Friday showed that non-oil domestic exports (NODX) for June soared to 16.1% as compared to a year ago, helped by shipments of pharmaceuticals, specialised machinery and electronics.
US stock market finished session lower on Thursday, 16 July 2020, with the Dow Jones Industrial Average snapping a four-day winning streak, as elevated levels of unemployment claims heightened concerns about the economic toll from rising coronavirus cases. Meanwhile, US-China tensions also weighed down stocks.
A jump in cases of the virus has forced California and other states to shut down again, sparking fears of more business damage and slowing the pace of a Wall Street rally.
US first-time claims for unemployment benefits slipped to 1.300 million in the week ended July 11th, a report released by the Labor Department on Thursday showed. A decrease of 10,000 from the previous week's revised level 1.310 million. Jobless claims fell for the fifteenth consecutive week, although the pace of decline has slowed considerably from April and May.
US retail sales soared by 7.5% in June after skyrocketing by an upwardly revised 18.2% in May, reflecting the reopening of businesses following the coronavirus-induced lockdowns, the Commerce Department reported on Thursday.
Meanwhile, investor focus is turning towards the action the United States might adopt further stimulus to help steer the world's largest economy through a worsening coronavirus pandemic.
As per media reports, the US Congress is set to begin debating such a package next week, as several states in the South and West implement fresh lockdown measures to curb cases. While May and June U.S. retail sales continued to show signs of recovery, questions, however, remain as to how long this recovery could last for.
US President Donald Trump's administration is also reportedly mulling a stateside travel ban on all members of the ruling Chinese Communist Party (CCP) and their families.
Indian Stocks in Spotlight:
HCL Technologies fell 0.67%. The company's consolidated net profit rose 31.7% to Rs 2,925 crore on 8.6% increase in revenue to Rs 17,841 crore in Q1 June 2020 over Q1 June 2019.
On a sequential basis, net profit declined 7.3% and revenue fell 4% in Q1 June 2020 over Q4 March 2020. Consolidated EBITDA fell 3.3% to Rs 4566 crore in Q1 June 2020 over Q4 March 2020. Operating margin (EBIT) fell 5.7% to Rs 3660 crore in Q1 June 2020 over Q4 March 2020. EBIT margin stood at 20.5% in Q1 June 2020, lower than 20.9% in Q4 March 2020 and higher than 17.1% in Q1 June 2019.
The company's revenue in constant currency was down 7.2% QoQ & up 1% YoY. HCL said it expects revenue to increase QoQ by an average of 1.5% to 2.5% in constant currency for the next 3 quarters. It expects operating margin between 19.5% and 20.5% for FY21.
Meanwhile, the company appointed Roshni Nadar Malhotra, non-executive director as the chairperson of the Board of Directors w.e.f. 17 July 2020, in place of Shiv Nadar who expressed his desire to step down from the position of the Chairman.
Britannia Industries fell 1.81%. The FMCG major's consolidated net profit surged 118.26% to Rs 542.68 crore in Q1 June 2020 from Rs 248.64 crore posted in Q1 June 2019. Consolidated revenue from operations stood at Rs 3,420.67 crore in Q1 June 2020, rising 27% from Rs 2700 crore in the same period last year. Profit before tax (PBT) jumped 88% year-on-year to Rs 737 crore in Q1 June 2020. Total tax expense surged 36% to Rs 194.37 crore in Q1 June 2020 over Q1 June 2019. The result was announced during market hours today, 17 July 2020.
State-run oil marketing companies (PSU OMCs) were in demand after crude oil prices declined. BPCL (up 12.65%), HPCL (up 6.84%) and Indian Oil Corporation (up 3.15%) advanced.
Crude oil prices fell on Thursday after OPEC+ agreed to ease record supply curbs and as new infections of the novel coronavirus continue to surge in the United States.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
State-run oil explorers ONGC (up 5.52%) and Oil India (up 1.71%) advanced.
L&T Technology Services (LTTS) tumbled 4.18%. The company's consolidated net profit declined 42.5% to Rs 117.20 crore on a 3.9% fall in net sales to Rs 1294.70 crore in Q1 June 2020 over Q1 June 2019. Consolidated profit before tax stood at Rs 159.70 crore in Q1 June 2020, falling 42.4% from Rs 277.3 crore in the same period last year. Total tax expense for Q1 June 2020 were at Rs 41.7 crore, falling 43% from Rs 73.2 crore in Q1 June 2019. Consolidated EBITDA stood at Rs 205.9 crore in Q1 June 2020, tumbling 24.5% from Rs 272.70 crore in Q1 June 2019. EBITDA margin stood at 15.9% in Q1 June 2020, lower than 20.2% in Q1 June 2019.
L&T Finance Holdings (L&TFH) rose 3.09%. The company's consolidated net profit tanked 73.2% to Rs 147.44 crore on 1.8% slip in total income to Rs 3,623.14 crore in Q1 June 2020 over Q1 June 2019. Profit before tax (PBT) slumped 86.6% to Rs 99.26 crore in Q1 June 2020 as against Rs 742.63 crore in Q1 June 2019. Current tax expense for the quarter jumped 82.5% at Rs 250.18 crore as against Rs 137.11 crore in Q1 June 2019. The exceptional item during the quarter ended 30 June 2020 represents net gain of Rs 225.61 crore on the divestment of entire stake in the subsidiary company, L&T Capital Market concluded on 24 April 2020. The Q1 earnings were announced post trading hours yesterday, 16 July 2020.
Yes Bank rose 2.86% to Rs 19.80. The bank's follow-on public offer (FPO) to raise Rs 15,000 crore was subscribed 93% till 17:00 IST Friday (17 July).
The private sector bank offered 909.98 crore shares under the FPO at a price band of Rs 12-13 per share. The bank's FPO opened on 15 July 2020 and will close today, 17 July 2020.
On Tuesday (14 July), the private lender allotted 3,41,53,84,614 equity shares to a total of 14 anchor investors at Rs 12 per share.
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