Equity indices pared losses and traded near the flat line in mid-morning trade. Gains were capped as weak GST collection data and rising COVID-19 cases hampered sentiment. The market was also under pressure due to introduction of new margin requirement in the cash segment from 1st September and geo-political tensions between India-China.
At 11:32 IST, the barometer index, the S&P BSE Sensex, was down 26.29 points or 0.07% at 38,874.70. The Nifty 50 index slipped 6.7 points or 0.06% at 11,463.85.
In broader market, the S&P BSE Mid-Cap index was up 0.07% but the S&P BSE Small-Cap index jumped 1.07%.
The market breadth was positive. On the BSE, 1338 shares rose and 976 shares fell. A total of 125 shares were unchanged.
The Sebi's new margin rules came into effect from 1 September 2020. As per the new rule, it is mandatory for brokers to collect margins from investors upfront for any purchase or sale of shares. Failing to do so will attract a penalty.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 25,662,349 with 855,578 deaths. India reported 8,01,282 active cases of COVID-19 infection and 66,333 deaths while 29,01,908 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
GST Collections:
Goods and Services tax (GST) collection for the month of August stood at Rs 86,449 crore, slightly less than Rs 87,422 crore collected in July, the government said on September 1. The collection is 12% lower than Rs 98,202 crore collected in the month of August 2019.
Buzzing Index:
The Nifty IT index gained 0.54% to 17,910.95, snapping its two days losing streak.
MindTree (up 2.84%), Info Edge (up 2.33%), HCL Technologies (up 0.6%), Tech Mahindra (up 0.58%), Wipro (up 0.52%) and Coforge (up 0.49%) were top gainers in Nifty IT index.
IT services firm Happiest Minds Technologies has received markets regulator Sebi's approval to float initial public offer. The IPO will open on Monday, 7 September and close on Wednesday, 9 September 2020.
Stocks in Spotlight:
ONGC's consolidated net profit slumped 84.7% to Rs 1,090.03 crore on 42.9% drop in net sales to Rs 62,496.06 crore in Q1 June 2020 over Q1 June 2019. In dollars terms, standalone net realisation from crude oil price slumped 56.7% to $28.72 per barrel of oil (bbl) in Q1 FY21 from $66.32 bbl in Q1 FY20. Net realisation from crude oil price (joint venture) tanked 55.7% to $29.60 bbl in Q1 FY21 as against $66.78 bbl in Q1 FY20. Gas price on gross calorific value (GCV) basis dropped 35.2% to $2.39 per million metric British Thermal unit (MMBTU) in Q1 FY21 as against $3.69 per MMBTU in Q1 FY20. The revenue and PAT for Q1 have been impacted by lower crude price realization in the wake of COVID-19 fall out on global oil and gas industry as a direct consequence of adverse price movements in global crude prices. Lower gas prices also contributed to lower topline and bottom line.
Bajaj Auto fell 1.19% to Rs 2923.60 after the company's total sales declined 9% to 356,199 units in August 2020 from 390,026 units in August 2019. Sequentially, the total sales rose 39% in August 2020 compared with 255,832 units sold in July 2020. Total domestic sales fell 11% to 185,879 units while total exports contracted 6% to 170,320 units in August 2020 over August 2019.
Vodafone Idea was up 6.97%. The telecom operator said that the meeting of the board of directors of the company is scheduled on 4 September 2020 to consider and evaluate any and all proposals for raising of funds in one or more tranches. The announcement was made after market hours yesterday, 1 September 2020.
Global Markets:
The US Dow index futures were up 115 points, indicating a positive opening in the US stocks today.
Asian stocks advanced on Wednesday, encouraged by buoyant US stocks that followed stronger-than-expected manufacturing indicators.
In US, the S&P 500 and the Nasdaq hit new highs on Tuesday with technology leading the charge as Apple, Zoom Video soared, and on the macro front, better-than-expected data on US manufacturing sector data gave optimism about economic recovery. Investors also expected more policy support.
The US Trade Representative's office said on September 1 it has reportedly extended China tariff exclusions for a wide range of goods, including smart watches and certain medical masks, through the end of 2020, rather than renewing the previous one-year extension. In a Federal Register notice, USTR said the extensions were applied to products excluded from its 7.5% "Section 301" tariffs imposed a year ago on some $300 billion worth of Chinese goods a year ago amid tense trade talks between the world's two largest economies. The products included a number of Bluetooth and wearable data-transmitting devices, such as those imported from China by Apple Inc, FitBit, Sonos and other technology companies.
In economic data, American manufacturers for August showed a fourth straight monthly rise. The Institute for Supply Management said its manufacturing index rose to 56% in August from 54.2% in July.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)