The equity barometers firmed up further and hit fresh intraday high in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 115 points or 0.31% at 33,622.92. The Nifty 50 index added 42.15 points or 0.43% at 9,923.30.
In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 1.13%.
The market breadth was strong. On the BSE, 1539 shares rose and 668 shares fell. A total of 120 shares were unchanged.
PM Modi's Address:
Prime Minister Narendra Modi addresses the launching of auction of 41 coal mines for commercial mining, via video conference. The government has decided to open up the coal and mining sector for competition, capital, participation and technology.
"India will turn this COVID-19 crisis into an opportunity. It has taught India to be self-reliant and to reduce its dependence on imports," PM Modi said. "For decades, the country's coal sector was entangled in a web of captive & non-captive. It was excluded from competition, there was a big problem of transparency. After 2014, several steps were taken to change this situation. Coal sector got strengthened due to steps taken," he added.
Covid-19 Update:
India reported 1,60,384 active cases of COVID-19 infection and 12,237 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 83,49,950 far with 4,48,959 deaths, according to data from Johns Hopkins University.
Foreign portfolio investors (FPIs) sold shares worth Rs 486.62 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 168.05 crore in the Indian equity market on 17 June, provisional data showed.
Economy:
Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the rating at 'BBB-'.
The coronavirus pandemic has significantly weakened India's growth outlook for this year and exposed the challenges associated with a high public-debt burden. Fitch expects economic activity to contract by 5% in the fiscal year ending March 2021 (FY21) from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5% in FY22.
Buzzing Index:
The S&P BSE Telecom index added 0.44% to 1,297.10. Bharti Airtel gained 0.38% to Rs 565.65 while Vodafone Idea gained 0.2% to Rs 9.87.
The Supreme Court will hear a petition today filed by the Department of Telecommunication (DoT) to allow telecom companies (telecos) to make staggered payments for the adjusted gross revenues (AGR) dues. In the last hearing on June 11, the apex court came down heavily on telecos for not having paid the pending AGR dues. The apex court also said that the Centre misused the court's judgment in the matter as it asked Solicitor General Tushar Mehta to clearly tell why "totally impermissible" demand of Rs 4 lakh crore has been raised on the PSUs. Telecos were asked to file affidavits on how will they pay the rest of the dues, the Supreme Court observed and adjourned the matter for further hearing on 18 June 2020.
Earnings impact:
Pidilite Industries fell 1.88% to Rs 1405.50 after consolidated net profit fell 33% to Rs 157.53 crore on 5.8% decline in net sales to Rs 1544.68 crore in Q4 March 2020 over Q4 March 2019.
Commenting on the quarter performance, Bharat Puri, managing director, Pidilite Industries said, "The quarter performance was significantly impacted by the lockdown on account of the pandemic as well as related disruptions in the supply chain. While top line growth remains subdued, earnings have improved substantially, primarily as a result of softer input costs. Covid 19 is a significant challenge. As normalcy returns slowly across various markets we remain cautious and focused on restoring volumes enabled by investments in brand building, growth categories, capabilities and sales and distribution."
Muthoot Finance jumped 11.84% to Rs 1118.60 after the NBFC major reported a 53% jump in consolidated net profit to Rs 829.37 crore on a 26.1% rise in total income to Rs 2,633.58 crore in Q4 March 2020 over Q4 March 2019. Consolidated loan assets under management increased by 22% YoY at Rs 46,871 crore for FY20. Capital adequacy ratio stood at 25.47% in FY20 as against 26.05% in FY19.
Global Markets:
Most Asian stocks declined on Thursday as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
The US stocks finished session lower after fluctuating between gains and losses on Wednesday, 17 June 2020, as investors elected to book recent profit amid concerns over a second wave of coronavirus infection and escalating geopolitical tensions pertaining to the Korean Peninsula against signs that the economy is recovering.
Investors continued to monitor disturbing coronavirus trends in several US states, including Florida and Texas, as well as a new outbreak in China and rising deaths in Brazil and India. They were also rattled by escalating geopolitical tensions pertaining to the Korean Peninsula after North Korea demolished an inter-Korean liaison office and rejected an offer by South Korea to send special envoys, vowing to send troops back to the border.
However, market losses capped after official data showed that mortgage applications surged 4% last week and were up 21% from the year-ago period, indicating a strong bounce-back for the housing market and US consumers.
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