The benchmark indices extended gains and hit fresh intraday high in early afternoon trade. Positive global cues boosted investors sentiment. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 270.92 points or 0.71% at 38,688.15. The Nifty 50 index added 59.25 points or 0.52% at 11,414.30.
In the broader market, the S&P BSE Mid-Cap index shed 0.06% while the S&P BSE Small-Cap index gained 0.28%.
The market breadth was positive. On the BSE, 1232 shares rose and 1198 shares fell. A total of 167 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 6.93 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 815.82 crore in the Indian equity market on 7 September, provisional data showed.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.39% to 21.70. The Nifty September 2020 futures were trading at 11,430.10, at a premium of 15.8 points compared with the spot at 11,414.30.
The Nifty option chain for 10 September 2020 expiry showed maximum Call OI of 32.68 lakh contracts at the 11,500 strike price. Maximum Put OI of 37.53 lakh contracts was seen at 11,300 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 19.32 lakh contracts at the 11,500 strike price. Maximum Put OI of 30.37 lakh contracts was seen at 11,000 strike price.
Buzzing Index:
The Nifty IT index rose 2.48% to 18,627.80. The index has gained 3.1% in two sessions.
HCL Tech (up 3.48%), Coforge (up 2.99%), Larsen & Toubro Infotech (up 2.99%), Wipro (up 2.64%), Tech Mahindra (up 2.58%), Infosys (up 2.56%), Info Edge India (up 2.48%), TCS (up 2.11%), Mphasis (up 1.41%) and MindTree (up 0.11%) advanced.
Stocks in Spotlight:
Surya Roshni gained 3.43% to Rs 172 after the company said it received two separate orders worth Rs 287.45 crore from Indian Oil Corporation and Bharat Gas Resources.
Motherson Sumi Systems added 0.39% to Rs 114.40. The automotive component maker on Tuesday said its board has approved raising up to Rs 1500 crore through issuance of non-convertible debentures (NCDs) on private placement basis.
Bharat Dynamics slumped 13.39% to Rs 333. The Government of India has offered to sell 1,83,28,125 equity shares, constituting 10% paid-up share capital of the company through offer for sale (OFS). It has an option to sell an additional 91,64,063 equity shares or 5% stake (oversubscription option). The OFS opened on Tuesday (8 September) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (9 September). The floor price for the OFS was set at Rs 330 each, a 14.17% discount to Bharat Dynamics' closing price of Rs 384.50 on Monday, 7 September 2020.
As on 12:45 IST, the OFS received subscription for 1,73,36,541 shares or 111.28% against the base non-retail offer size of 1,55,78,906 shares.
Coronavirus Update :
Total COVID-19 confirmed cases worldwide stood at 27,342,332 with 892,714 deaths. India reported 8,83,697 active cases of COVID-19 infection and 72,775 deaths while 33,23,950 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The Reserve Bank of India (RBI) constituted KV Kamath committee has selected 26 sectors which will require restructuring based on its analyses of financial parameters hit due to the economic crash caused by the coronavirus pandemic.
In its report the five member committee reportedly said power, construction, iron and steel, roads, real estate, wholesale trading, textiles, consumer durables, aviation, logistics, hotels, restaurants and tourism, mining are among the sectors that will need restructuring.
The committee selected five financial parameters related to leverage, liquidity & debt serviceability viz. total outside liability to adjusted tangible net worth, debt to EBIDTA, current ratio, debt service coverage ratio (DSCR) and average debt service coverage ratio (ADSCR).
"Time is of essence at the present juncture. Considering the large volume and the fact that only standard assets are eligible under the proposed scheme, a segmented approach of bucketing these accounts under mild, moderate and severe stress, may ensure quick turnaround. To complete this task simplified restructuring for mild and moderate stress may be prescribed. Severe stress cases would require comprehensive restructuring," the committee reportedly added.
The RBI had formed a five member committee under the chairmanship of former ICICI Bank CEO KV Kamath to make recommendations on the financial parameters to be considered in the restructuring of loans impacted by the COVID-19 pandemic.
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