Key benchmarks ended with decent gains on Friday, mirroring positive cues from other Asian markets. The barometer index, the S&P BSE Sensex rose 214.33 points or 0.56% at 38,434.72. The Nifty 50 index gained 59.40 points or 0.53% at 11,371.60.
NTPC (up 4.75%), Asian Paints (up 4.43%), HDFC Bank (up 2.56%), HDFC (up 0.94%) and ICICI Bank (up 0.88%) were major index movers.
The broader market advanced for the fifth day in a row. The S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index added 1.41%. Both these indices outperformed the Sensex.
Buyers outnumbered sellers. On the BSE, 1840 shares rose and 967 shares fell. A total of 169 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 2,26,83,235 with 7,93,763 deaths. India reported 6,92,028 active cases of COVID-19 infection and 54,849 deaths while 21,58,946 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.144% compared with previous closing of 6% in the previous trading session.
In the foreign exchange market, the partially convertible rupee edged higher to 74.845 compared with its previous closing 75.025.
In the commodities market, Brent crude for October 2020 settlement fell 42 cents to $44.48 a barrel. The contract fell 1% to end at $ 44.9 in the previous trading session.
MCX Gold futures for 5 October 2020 settlement fell 0.53% to Rs 51,875.
Global Markets:
Most European shares declined while Asian shares advanced on Friday after a tech-driven rally on Wall Street. In a media release announcing the quarterly results, Alibaba Group Chief Financial Officer Maggie Wu said the firm's "domestic core commerce business has fully recovered to pre-COVID-19 levels across the board."
In Europe, the minutes from the last meeting of the European Central Bank showed that policymakers debated the flexibility of the landmark Pandemic Emergency Purchase Programme.
In US, Nasdaq ended at a record high on Thursday, with the S&P 500 and Dow also rising, as gains in heavyweight tech stocks outweighed downbeat data that affirmed the Federal Reserve's view of a difficult road to economic recovery.
Gains in Apple Inc, Amazon.com Inc and Microsoft Corp underpinned a rally in Wall Street's three main indexes as investors bet the tech giants would ride out the economic crisis. Tesla Inc. shares gained more than 6% on Thursday to end at a record $2,001.83 and setting an intraday record of $2,021.99.
The Trump administration on Thursday reportedly declined to acknowledge any plans to meet with China over the Phase 1 trade deal after the commerce ministry in Beijing said bilateral talks would be held in the coming days to evaluate the agreement's progress.
Bzzing Indian Segment:
Sugar stocks were in demand after the media reported that a Niti Aayog task force has recommended linking sugarcane prices to sugar rates to keep the industry in sound financial health. It has also pitched for a one-time increase in minimum sugar price to Rs 33 per kilo to help sugar mills cover the cost of production.
Dwarikesh Sugar Industries (up 9.88%), Balrampur Chini Mills (up 7.17%), Dhampur Sugar Mills (up 5.48%), Shree Renuka Sugars (up 5%), KCP Sugar & Industries Corporation (up 4.2%), Triveni Engineering and Industries (up 3.99%), DCM Shriram Industries (up 3.67%), Sakthi Sugars (up 3.49%) and EID Parry (up 1.54%) rallied.
Stocks in Spotlight:
ICICI Bank rose 0.88%. The private lender will acquire 4.46 crore equity shares of India International Exchange (India INX) at Re 1 each. Post deal, ICICI Bank's stake would increase from 7.7% to 9.9%, according to a regulatory filing issued during market hours today, 21 August 2020. The acquisition will be completed by 31 August 2020.
GMM Pfaudler jumped 2.12%. The company announced the signing of definitive agreements to acquire a majority stake in the global business of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG). As per the agreements, GMM (directly and through its subsidiary Mavag AG) and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around $27.4 million, will be funded by the company through a mix of internal accruals and debt. Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the company. The company will have a consolidated revenue of Rs 2,000 crore and EBITDA of approximately Rs 250 crore.
Indian Railway Catering and Tourism Corporation (IRCTC) fell 0.39%. The Government of India (GoI) announced plan to pare its stake in the company. As on 30 June 2020, GoI held 87.40% stake in IRCTC. To meet Sebi's public holding norm, the government has to lower its stake in the company to 75%.
Premier Explosives hit an upper circuit of 5% at Rs 135.85 after the company said it received an order worth Rs 3.90 crore from Israel Aerospace Industries. The company will develop and supply EDRM Rocket Motors. The order is to be delivered within nine months.
MOIL fell 1.96%. The state-owned mining corporation reported 97.93% fall in consolidated net profit to Rs 1.88 crore on 45.86% fall in net sales to Rs 178.05 crore in Q1 June 2020 over Q1 June 2019. Consolidated profit before tax (PBT) dropped 98.5% to Rs 2.12 crore in Q1 June 2020 as against Rs 140.10 crore in Q1 June 2019. Profit was weighed adversely by exceptional items of Rs 50 crore which included contribution towards PM Cares Fund and CM Relief Fund. The state-owned company said that the COVID-19 pandemic and lockdown protocols have led to severe disruptions, affecting both the turnover and the profit during current reporting period.
Indian Overseas Bank advanced 2.27% after the bank posted net profit of Rs 120.69 crore in Q1 June 2020 as compared with net loss of Rs 342.08 crore in Q1 June 2019. Total income rose 4.5% to Rs 5,233.63 crore in Q1 June 2020 over Q1 June 2019. The bank's provisions and contingencies dropped 16.26% to Rs 969.52 crore in Q1 FY21 over Rs 1,157.82 crore in Q1FY20. Provision Coverage Ratio (PCR) improved to 87.97% as on 30 June 2020 as against 72.24% as on 30 June 2019.
Max Healthcare Institute hit an upper circuit of 5% at Rs 112.35 after its debut on the bourses today. The scrip listed at Rs 107 on the BSE today. The stock was listed in the list of 'T' group of securities in on the BSE and it will be in trade-for-trade segment for ten trading days.
The company was listed following a merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita Allied Health Services, a wholly-owned subsidiary of Max India.
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