The benchmark indices were trading with minor cuts in mid-morning trade. Trading was volatile as geopolitical tensions concerned investors. At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 30.21 points or 0.09% at 33,575.01. The Nifty 50 index lost 9.90 points or 0.10% at 9,904.10.
In the broader market, the S&P BSE Mid-Cap index added 0.26% while the S&P BSE Small-Cap index gained 0.61%.
The market breadth was positive. On the BSE, 1163 shares rose and 995 shares fell. A total of 143 shares were unchanged.
A Supreme Court bench will today (17 June) hear the case relating to interest waiver during the moratorium period. In its previous hearing, SC ruled out a complete interest waiver on term loans during the moratorium period. The bench now seeks to know whether interest will be charged on accrued interest during the said period.
Twenty Indian soldiers, including a Colonel, were killed and several others grievously injured in a violent physical skirmish with Chinese troops in the Galwan Valley region of eastern Ladakh on Monday. China blamed India for the violent LAC scuffle saying Indian troops crossed the border twice illegally and launched "provocative attacks".
Foreign portfolio investors (FPIs) sold shares worth Rs 1,478.52 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,161.51 crore in the Indian equity market on 16 June, provisional data showed.
Covid-19 Update:
India reported 1,55,227 active cases of COVID-19 infection and 11,903 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 81,73,940 far with 4,43,685 deaths, according to data from Johns Hopkins University.
Meanwhile, the World Health Organization (WHO) has hailed dexamethasone as a lifesaving scientific breakthrough to treat severely ill coronavirus patients. Results of trials announced on Tuesday showed dexamethasone, which is used to reduce inflammation in other diseases, reduced death rates by around a third among the most severely ill Covid-19 patients admitted to hospital. The results suggest the drug should immediately become standard care in patients with severe cases of the pandemic disease, said the researchers who led the trials.
Earnings impact:
Ratnamani Metals & Tubes added 0.63% to Rs 1015.75 after it reported 6.6% rise in consolidated net profit to Rs 67.34 crore on 8.4% decline in net sales to Rs 629.09 crore in Q4 March 2020 over Q4 March 2019.
Navin Fluorine International rose 3.1% to Rs 1,610 after consolidated net profit surged 705.5% to Rs 270.09 crore on 9.5% increase in net sales to Rs 276.57 crore in Q4 March 2020 over Q4 March 2019. Profit was aided by a minimum alternate tax (MAT) credit reversal of Rs 88.2 crore during the quarter.
Schneider Electric Infrastructure tumbled 7.44% to Rs 82.70 after the company reported a net loss of Rs 27.10 crore in Q4 FY20 as against net profit of Rs 1.46 crore in Q4 FY19. Net sales declined 19.8% during the fourth quarter to Rs 229.59 crore as compared to Rs 286.44 crore in the corresponding period last year.
With respect to the COVID-19 pandemic, Schneider Electric said: "The situation is changing rapidly giving rise to inherent uncertainly around the extent and liming of the potential future spread of the COVID-19 and its impact on the company's business operations."
Global Markets:
Overseas, most Asian stocks were trading higher. Japan's Nikkei 225 index fell 0.57% after the country's exports plunged 28.3% year-on-year in May.
The International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast. IMF Chief Economist Gita Gopinath said in a Tuesday blog post that the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated. The fund also said the current crisis, which it dubbed the Great Lockdown, is unlike anything the world has seen before.
Investors continue to watch for developments on the geopolitical front regionally, as tensions escalate along the Korean peninsula after North Korea reportedly destroyed a liaison office with the South.
In US, Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the US economy could bounce back sooner than expected.
A full US economic recovery will not occur until the American people are sure that the novel coronavirus epidemic has been brought under control, Federal Reserve Chair Jerome Powell said on Tuesday, as he began the first of two days of hearings before US lawmakers. The longer the downturn lasts, the greater the potential for longer-term damage from permanent job loss and business closures, Powell added.
In economic data, U.S. retail sales jumped by 17.7% in May, the government said Tuesday. U.S. industrial production for May rose by 1.4%, as many factories resumed operations after shutdowns spurred by the coronavirus crisis, the Federal Reserve said Tuesday.
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