Local stocks are trading with modest losses in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 84.89 points or 0.21% at 39,489.68. The Nifty 50 index was down 12.55 points or 0.11% at 11,649.85.
The S&P BSE Mid-Cap index was down 0.43%. The S&P BSE Small-Cap index was down 0.27%.
The market breadth, indicating the overall health of the market, is negative. On the BSE, 602 shares rose and 939 shares fell. A total of 73 shares were unchanged.
Cues to watch:
The Reserve Bank of India said that the next meeting of the Monetary Policy Committee (MPC) is scheduled during 7 to 9 October 2020. The government on Monday has named Shashanka Bhide, Ashima Goyal and Jayanth Varma as its nominees on the central bank's monetary policy committee (MPC) on Monday. The new members have been appointed for a four-year term.
The Reserve Bank of India was forced to delay the bi-monthly committee meeting set to take place from 29 September to 1 October, as it required at least four MPC members to proceed and the Indian government had failed to name replacements for three previous appointees whose tenure ended in September.
Stocks in news:
Tata Consultancy Services (TCS) rose 0.09%. TCS will announce its quarterly result today, 7 October 2020.
Reliance Industries (RIL) rose 1.14%. RIL and Reliance Retail Ventures (RRVL) announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore into RRVL, a subsidiary of RIL. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. ADIA's investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis.
Bajaj Finance lost 4.75%. Bajaj Finance said that customer franchise as of 30 September 2020 stood at 44.1 MM as compared to 38.7 MM as of 30 September 2019. During the quarter, the company acquired 1.2 MM new customers.
PSP Projects fell 1.58%. PSP Projects informed that in accordance with the communication from the concerned authority, the tender for EPC Design and Build Construction of proposed GIDC Tech-Hub at GIFT City, Gandhinagar, Gujarat in which the company emerged as the L-1 Bidder has been cancelled by the tender inviting authority.
Indian Energy Exchange fell 1.54%. Indian Energy Exchange informed that the board of directors has considered, and approved the further investment of Rs 6.25 crore in Indian Gas Exchange, wholly owned subsidiary of the company, by way of subscription to equity shares through rights issue.
VA Tech Wabag slipped 0.52%. VA Tech Wabag Brazil Servicos De Agua E Saneamento Ltda, Brazil, the company's subsidiary is liquidated. It may be noted that this company was not a material subsidiary and did not have any business activity.
Global Markets:
Overseas, Asian stocks were mostly lower on Wednesday weighed by a weaker Wall Street finish as U.S. President Donald Trump called off stimulus negotiations till after the November election.
In US, stocks fell on Tuesday after President Donald Trump instructed White House officials to halt negotiations on further coronavirus stimulus, sparking a sharp reversal in the major market benchmarks.
U.S. Federal Reserve Chairman Jerome Powell on Tuesday called for continued aggressive fiscal and monetary stimulus for an economic recovery he said still has a long way to go.
The US trade deficit rose in August to the highest level in 14 years. The Commerce Department reported Tuesday that the gap between the goods and services the United States sells and what it buys abroad climbed 5.9% in August to $67.1 billion, highest since August 2006. Exports rose 2.2% to $171.9 billion on a surge in shipments of soybeans. Imports rose 3.2% to $239 billion led by purchases of crude oil, cars and auto parts.
Back home, domestic equity benchmarks surged on Tuesday, rising for the fourth straight session. The rally was led by HDFC and private sector banks. Positive Asian cues and decent Q2 business update from domestic companies supported buying. The barometer index, the S&P BSE Sensex, rallied 600.87 points or 1.54% at 39,574.57. The Nifty 50 index climbed 159.05 points or 1.38% at 11,662.40.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,101.76 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 934.84 crore in the Indian equity market on 6 October, provisional data showed.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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