Benchmark indices were hovering near the day's high in afternoon trade, supported by firmness in banks shares. The barometer index, the S&P BSE Sensex, rose 582.13 points or 1.53% at 38,650.06. The Nifty 50 index gained 159.05 points or 1.41% at 11,406.60.
ICICI Bank (up 3.76%), HDFC (up 2.80%), and HDFC Bank (up 1.62%) boosted the indices.
Sentiment was upbeat as the central government yesterday issued new guidelines for opening up of more activities in areas outside the containment zones. Encouraging macroeconomic data and positive global cues also supported buying.
In the broader market, the S&P BSE Mid-Cap index rose 0.78%. The S&P BSE Small-Cap index gained 0.88%.
Buyers overpowered sellers. On the BSE, 1,469 shares rose and 975 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.
Unlock 5.0:
The Ministry of Home Affairs (MHA), on 30 September 2020, announced the Unlock 5.0 guidelines, further relaxing curbs on activities outside of containment zones. Cinemas, theaters and multiplexes will be permitted to open with upto 50% of their seating capacity from 15 October 2020, in areas outside the containment zones. For re-opening of schools and coaching institutions, State and Union territories Governments have been given the flexibility to take a decision after 15 October 2020, in a graded manner.
Social, academic, sports, entertainment, cultural, religious, political functions and other congregations have already been permitted with a ceiling of 100 persons, outside containment zones only. In closed spaces, a maximum of 50% of the hall capacity will be allowed, with a ceiling of 200 persons. Wearing of face masks, maintaining social distancing, provision for thermal scanning and use of hand wash or sanitizer will be mandatory.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 3,39,76,447 with 10,14,266 deaths. India reported 9,40,705 active cases of COVID-19 infection and 98,678 deaths while 52,73,201 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased from 52 in August 2020 to 56.8 in September 2020, signalling back-to-back improvements in the health of the sector. Moreover, the latest reading was the highest in over eight-and-a-half years.
The output for India's eight core industries contracted for the sixth straight month, dropping 8.5% in August 2020. The production of eight core sectors had contracted 0.2% in August 2019, showed data released by the Commerce and Industry Ministry on Wednesday. Barring coal and fertiliser, all sectors crude oil, natural gas, refinery products, steel, cement and electricity recorded negative growth in August 2020.
Gainers & Losers:
IndusInd Bank (up 6.52%), Bajaj Auto (up 5.07%), Bajaj Finance (up 3.90%) and Axis Bank (up 3.63%) were major gainers in Nifty 50 index.
ONGC (down 1.23%), Dr Reddy's Laboratories (down 0.84%), ITC (down 0.70%), Titan Company (down 0.53%) and Britannia Industries (down 0.40%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Maruti Suzuki India rose 1.42% after the auto maker's total sales jumped 30.8% to 1,60,442 units in September 2020 from 1,22,640 units sold in September 2019. The company's total sales surged 28.74% in September 2020 from 1,24,624 units sold in August 2020. While the total domestic sales have increased by 32.2% to 1,52,608 units, total exports have risen by 9% to 7,834 in September 2020 over September 2019.
Coal India (CIL) gained 2.46% after the state-owned coal producer announced coal production and offtake figures for September 2020. The company's coal production rose 31.6% to 40.51 million tonnes (MT) in September 2020 from 30.78 million tonnes in September 2019. CIL's coal offtake in September 2020 stood at 46.46 million tonnes, up by 31.7% from 35.28 million tonnes in September 2019.
Sobha advanced 2.31% after the Bengaluru-based real estate company said it sold its entire contribution of 43.13% in CVS Techzone LLP for Rs 35,87,972 on 30 September 2020. The realty firm, had contributed Rs 35,87,972 to take 43.13% in the newly incorporated limited liability partnership (LLP) company - CVS Techzone LLP. It was incorporated on 8 September 2020 for development of a tech park on a joint venture basis.
Global Markets:
European markets and Asian equities were trading higher tracking overnight gains in US stocks. Markets in China, Hong Kong, South Korea and Taiwan are closed on Thursday for holidays. Japan's Tokyo Stock Exchange suspended trading on Thursday due to a technical issue.
On the economic data front, the headline large manufacturers index in the Bank of Japan's quarterly tankan business sentiment survey came in at minus 27. Still, that was better than the minus 34 reading in June.
In US, stocks climbed in volatile trading on Wednesday amid rising hopes for further coronavirus stimulus.
Stocks cut gains in the final hour of trading after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal. The pair will continue talks as they try to craft a fifth package that could pass both chambers of Congress. The market soared earlier in the session after Mnuchin said lawmakers were giving the bill "a serious try."
Meanwhile, Moderna's experimental COVID-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine. However, as per reports Moderna's vaccine won't be ready before the November election.
Sentiment was helped by better-than-expected economic data. ADP's monthly private-sector jobs count showed growth of 749,000 in September. Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.
The US economy plunged at a record rate in the spring. The Commerce Department reported Wednesday that the gross domestic product, the economy's total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago.
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