Benchmark indices pared losses in afternoon trade, tracking a sharp recovery in US Dow futures. The Dow futures were up 150 points, indicating a positive opening in the US market on Friday. Meanwhile, European shares rose across the board.
Back home, the barometer index, the S&P BSE Sensex, was down 342.64 points or 0.88% at 38,648.30. The Nifty 50 index was down 94.80 points or 0.82% at 11,432.65.
The recovery was supported by Maruti Suzuki India (up 2.96%), TCS (up 0.59%) and Bajaj Finance (up 0.75%).
The broader market traded with minor losses. The S&P BSE Mid-Cap index fell 0.63%. The S&P BSE Small-Cap index declined 0.38%.
Sellers outpaced buyers. On the BSE, 1,034 shares rose and 1,464 shares fell. A total of 180 shares were unchanged. In Nifty 50 index, 13 stocks advanced while 37 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 7.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 120.08 crore in the Indian equity market on 3 September 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 2,63,09,711 with 8,68,805 deaths. India reported 8,31,124 active cases of COVID-19 infection and 68,472 deaths while 30,37,151 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Sebi's New Margin Requirement:
Introduction of new margin requirement in the cash segment from 1 September 2020 also put pressure on the bourses. 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.
Sebi had initiated a change in margin collection norms from 1 September 2020, but the process did not see a smooth pick-up, as it was marred by tech glitches and chaos. This chaos has resulted in a significant fall in derivative positions.
The National Stock Exchange (NSE) issued a circular on Thursday, extending the deadline for the imposition of penalty on brokers for not collecting adequate margins by fifteen days till 15 September 2020.
Gainers & Losers:
Bharti Infratel (up 3.18%), Tata Motors (up 0.66%) and Bajaj Finserv (up 0.59%) were other major gainers in Nifty 50 index.
Wipro (down 2.23%), JSW Steel (down 2.18%), ITC (down 2.14%), NTPC (down 2%) and Tata Steel (down 1.89%) were major losers in Nifty 50 index.
Results Today:
NALCO (down 1.07%), Jubilant Lifesciences (down 0.56%), Repco Home Finance (up 1.17%), Future Retail (down 4.99%), Goodyear India (down 0.33%) and NLC India (down 1.04%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Jubilant Industries tumbled 4.70% after the company reported a consolidated net loss of Rs 3.10 crore in Q1 June 2020 as against a net profit of Rs 9.55 crore in Q1 June 2019. Net sales during the quarter slumped 37.9% year-on-year (YoY) to Rs 94.32 crore. On the segmental front, revenue from agro-products stood at Rs 54.32 crore (up 9.9% YoY) while the revenue from performance polymers stood at Rs 40.31 crore (down 60.9% YoY) in June 2020.
Panacea Biotec slipped 0.74% after the company's consolidated net loss stood at Rs 69.70 crore in Q1 June 2020 compared with net profit of Rs 185.87 crore in Q1 June 2019. Consolidated net sales rose 2.2% to Rs 125.36 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 60.55 crore in Q1 June 2020 as against pre-tax profit of Rs 188.47 crore in Q1 June 2019.
Stocks in Spotlight:
KEC International fell 0.28%. The EPC company said it secured new orders worth Rs 1,401 crore across its various businesses. The company's transmission & distribution (T&D) business, including SAE Towers, has secured orders of Rs 1,143 crore for various T&D projects from Oman Electricity Transmission Company (OETC), Power Grid Corporation of India (PGCIL) and other customers. The railways business has secured orders of Rs 120 crore for overhead electrification (OHE)/civil works in India. The smart infra business has secured orders of Rs 48 crore in the defence segment in India. The company's cable business has secured orders of Rs 90 crore for supply of various types of cables/cabling projects in India and overseas.
CreditAccess Grameen advanced 3.58% after the company's board of directors approved a proposal for fund raising by way of issue of equity shares of Rs 1,000 crore.
Global Markets:
Overseas, European shares were trading higher while Asian stocks declined on Friday.
In US, stocks fell sharply on Thursday as tech stocks reversed uptrend. The Dow Jones Industrial Average slumped 807.77 points, or 2.8%, to 28,292.73 for its biggest one-day decline since 11 June 2020. The S&P 500 slid 3.5% to 3,455.06 and the Nasdaq Composite fell by 5% to close at 11,458.10.
Apple shares fell 8% for their biggest one-day decline since 16 March 2020. Amazon and Netflix were both down more than 4% and Facebook slid 3.8%. Microsoft slipped 6.2%. Alphabet pulled back by 5.1%.
In economic data, the number of first-time filers for unemployment benefits totaled 881,000 for the week ending 29 August 2020, compared to 1.011 million in the prior week, the Labor Department said Thursday. US imports jumped nearly 11% in July 2020, driving the trade gap up to $63.6 billion in the month, the Commerce Department reported Thursday.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)