The Nifty 50 index hit a low of 9,544.35 in early trade as US stocks crashed overnight as cautious commentary from the Federal Reserve and rising coronavirus infection rates prompted investor concern. The Nifty bounced back from its 20-day moving average (DMA) placed at 9,575.61, which will act as near term support level.
The broader market was mixed. The S&P BSE Mid-Cap index rose 0.27% while the S&P BSE Small-Cap index lost 0.33%.
The market breadth was weak. On the BSE, shares 978 rose and 1,432 shares fell. A total of 135 shares were unchanged. In Nifty 50 index, the breadth was even with 25 stocks advancing and 25 stocks declining.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 5.797% compared with previous closing of 5.781% in the previous trading session.
In the foreign exchange market, the partially convertible rupee edged lower to 75.84 compared with its previous closing 75.79.
In the commodities market, Brent crude for August 2020 settlement was down 44 cents to $38.11 a barrel. The contract slumped 7.6% to settle at $38.55 a barrel in the previous trading session.
MCX Gold futures for 5 August 2020 settlement fell 0.45% to Rs 47,200.
Buzzing Index:
The Nifty Metal index declined 1.46% to 1,926.35. The index is down 6% in five sessions.
Coal India (down 2.47%), National Aluminium Company (down 1.92%), Jindal Steel & Power (down 1.53%), NMDC (down 1.32%), Tata Steel (down 1.16%), Hindustan Zinc Ltd (down 0.41%) and Steel Authority of India Ltd (down 0.17%) were top losers in metal segment.
Stocks in Spotlight:
Caplin Point Laboratories jumped 6% to Rs 374 after the drug maker received the final approval from the US drug regulator for its Abbreviated New Drug Application (ANDA) Phenylephrine Hydrochloride injection. Phenylephrine Hydrochloride injection is indicated for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. The drug had total sales of approximately $45 million for the 12-month period ending March 2020, according to IQVIA.
Lemon Tree Hotels hit an upper circuit of 5% at Rs 28.80, extending recent gains. The counter has surged 60.45% in ten consecutive session from its recent closing low of Rs 17.95 on 29 May 2020.
The company disclosed on Thursday (11 June) that WF Asian Reconnaissance Fund and WF Asian Smaller Companies Fund on Tuesday (9 June) purchased 89.44 lakh equity shares, or 1.13% equity, in Lemon Tree Hotels. Post transaction, the shareholding of WF Asian Reconnaissance Fund and WF Asian Smaller Companies Fund increased to 5.68% from 4.55% earlier.
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