Key benchmark indices pared gains in mid-morning trade. At 11:23 IST, the barometer index, the S&P BSE Sensex, was up 233.01 points or 0.61% at 38,415.09. The Nifty 50 index added 49.50 points or 0.44% at 11,319.65.
In the broader market, the S&P BSE Mid-Cap index gained 0.06% while the S&P BSE Small-Cap index rose 0.38%.
The market breadth was strong. On the BSE, 1494 shares rose and 910 shares fell. A total of 132 shares were unchanged.
Buzzing Index :
The Nifty Pharma index fell 1.37% to 11,787.90. The index spurted 5.46% in the previous session.
Torrent Pharma (down 3.08%), Dr. Reddy's Labs (down 2.47%), Cadila Healthcare (down 1.91%), Cipla (down 1.75%) and Alkem Laboratories (down 1.61%) declined.
Meanwhile, Divi's Laboratories was up 0.30% to Rs 3130.11, extending gains for fourth consecutive day. The stock has surged 17.33% in four sessions while the Nifty Pharma index and the Nifty 50 index have gained 4.5% and 2%, respectively.
Earnings Impact:
Titan Company fell 4.07% to Rs 1062.75 after the company reported a consolidated net loss of Rs 297 crore in Q1 June 2020 compared with net profit of Rs 364 crore in Q1 June 2019. Revenue from operations stood at Rs 1979 crore in Q1 June 2020, tumbling 61.5% from Rs 5151 crore in the same period last year.
The disruption caused by the COVID-19 pandemic affected company's performance severely with retail outlets closed for a major part of the quarter. The lockdowns impacted the company's operations significantly in the months of April and May 2020 as most stores were forced to shut down. While stores started opening in May, post Unlock 1.0, even as at end of June 2020, only 83% of all the stores opened and even for stores that opened, many of them were not operating for all days.
With the negative consumer sentiment prevailing in the quarter, discretionary spends were very low, and specifically impacted company's Watches business and diamond studded jewellery in the Jewellery business. Plain gold jewellery sales, however, recovered better than expected in June despite high gold prices.
Shree Cement declined 4.10% to Rs 21,470 after consolidated net profit fell 13.6% to Rs 330.35 crore on 24.9% drop in net sales to Rs 2,480.14 crore in Q1 June 2020 over Q1 June 2019.
During the quarter ended 30 June 2020, Shree Cement's Indian operations were partially affected due to lockdown announced on account of COVID-19 pandemic by State and Central Government. The cement manufacturing major has considered the possible impact of COVID-19 in preparation of the financial results. The company believes that pandemic is unlikely to impact on the recoverability of the carrying value of its assets as at 30 June 2020. As the situation of pandemic is still continuing, the extent to which the same will impact company's future financial results is currently uncertain and will depend on further developments.
Global Markets :
Asian indices were trading higher on Tuesday following the overnight gains on Wall Street.
The Singapore economy contracted by 42.9% in the second quarter of 2020 compared to the previous quarter on an annualized, seasonally-adjusted basis, said the Ministry of Trade and Industry. The updated figure was worse than the official advance estimate released last month, and confirmed the Southeast Asian country had entered a technical recession.
The trade and industry ministry revised its full-year forecast for Singapore to register an economic contraction of between 5% and 7% in 2020. Previously, it had expected the country's GDP to fall by between 4% and 7%.
The US stocks closed mixed on Monday, 10 August 2020, with the Dow Industrials rallied along with the S&P 500 index but the Nasdaq bucked the trend, as investors rotated into value stocks from tech sector while they awaited news on progress in a fiscal support bill for the country's battered economy.
Monday trading showed signs of a rotation away from high-growth stocks in the tech sector to more economically sensitive cyclical companies. As the summer COVID-19 spike wanes, investors are more inclined toward cyclical stocks to view the economic recovery as real and sustainable for the first time since the pandemic began.
Providing some support, US President Donald Trump signed executive orders that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week.
Tensions between Washington and Beijing were also at play, after Trump signed executive orders last week banning major Chinese technology firms in 45 days' time while announcing sanctions on 11 Chinese and Hong Kong officials.
Eastman Kodak Co sank after its $765-million loan agreement with the US government to produce pharmaceutical ingredients was put on hold due to "recent allegations of wrongdoing."
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