Key barometers were hovering near the day's low in early afternoon trade. At 12:21 IST, the barometer index, the S&P BSE Sensex, was down 809.23 points or 2.40% at 32,971.66. The Nifty 50 index lost 232.65 points or 2.33% at 9,740.25.
Weak global cues spoiled investors sentiment. Asian shares tumbled while the US Dow Futures crashed 817 points on Monday as new coronavirus cases trend higher in the US and flare up in Beijing and Tokyo. China recorded dozens of new COVID-19 cases in recent days, all linked to a major wholesale food market. Authorities have reportedly closed the centre and locked down nearby housing districts. The United States reported more than 25,000 new cases on Saturday.
In the broader market, the S&P BSE Mid-Cap index fell 1.23% while the S&P BSE Small-Cap index slipped 0.29%.
The market breadth turned negative. On the BSE, 1060 shares rose and 1276 shares fell. A total of 157 shares were unchanged.
India reported 1,53,106 active cases of COVID-19 infection and 9,520 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 79,12,981 far with 4,33,394 deaths, according to data from Johns Hopkins University.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,311.49 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,945.15 crore in the Indian equity market on 5 May, provisional data showed.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 9.08% to 33.62. The Nifty June 2020 futures were trading at 9,696.85, a discount of 43.40 points compared with the spot at 9,740.25.
On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 23.05 lakh contracts at the 10,000 strike price. Maximum put OI of 37.14 lakh contracts was seen at 9,000 strike price.
Buzzing Index:
The Nifty Metal index was down 2.41%. It rose 14.6% in the past one month while the benchmark Nifty 50 index rose 10.3 during the same period.
Tata Steel (down 3.98%), National Aluminium Company (down 3.82%), JSW Steel (down 3.7%), Jindal Steel & Power (down 3.32%), Steel Authority of India (down 3.29%), NMDC (down 2.97%), Hindustan Zinc (down 1.69%), Hindalco Industries (down 0.89%), Vedanta (down 0.87%) and Hindustan Copper (down 0.03%) declined.
Stocks in Spotlight:
Reliance Industries (RIL)'s partly paid-up shares listed on exchanges on Monday (15 June) at a premium.
As of 12:16 pm, RIL shares were down 1.21% at Rs 1569.60 while its partly paid-up shares (ReliancePP) were trading at Rs 671 (up 3.86%). It hit an intraday high of Rs 710.65 on the BSE. ReliancePP opened at Rs 689 on BSE.
RIL issued 44.26 crore partly paid-up shares with face value of Rs 2.5 per share under the rights issue at Rs 314.25 per share. The Rs 53,124 crore rights issue, which opened for subscription on 20 May 2020, concluded on 3 June and garnered 1.6 times subscription. RIL issued shares at Rs 1,257 apiece in the rights issue. The entire payment has to be paid in three tranches. The holders of the partly-paid up shares will have to pay second installment of Rs 314.25 in May 2021 and the balance Rs 628.5 in November 2021. RIL's partly-paid up shares will be converted to fully-paid up shares in November 2021.
Meanwhile, RIL on Saturday (13 June) said L Catterton, one of the world's largest consumer focused private equity firms, will invest Rs 1,894.50 crore in Jio Platforms for a 0.39% equity stake. With this investment, Jio Platforms has raised Rs 104,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since 22 April 2020.
Grasim Industries lost 3.91% to Rs 578.50. The company reported a 32% surge in net profit to Rs 1506 crore on a 11.3% decline in net sales to Rs 19,902 crore in Q4 March 2020 over Q4 March 2019. Net profit was aided by write back of deferred tax liabilities and lower exceptional charge in the current year.
In its outlook, Grasim said its products will be impacted by the COVID-19 led general economic slowdown. The company has initiated various measures to reduce its fixed costs and conserve cash as part of its comprehensive business continuity plan.
Eicher Motors fell 1.71% to Rs 16,572.50 after the company's consolidated net profit slumped 44.2% to Rs 304.28 crore on 11% drop in net sales to Rs 2,190.32 crore in Q4 March 2020 over Q4 March 2019.
Royal Enfield sold 1,63,083 motorcycles in the quarter, registering a decline of 17% from 1,97,567 motorcycles sold over the same period last year. VE commercial vehicles (CV) sold 11,629 trucks and buses in the quarter, registering a decline of 45% from 21,010 trucks and buses sold over the same period in the last financial year.
Meanwhile, the board approved 10-for-1 stock split. The company will split each share of face value Rs 10 each into 10 equity shares of face value Re 1 each.
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