The benchmark indices traded with modest losses in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 93.62 points or 0.18% at 52,389.09. The Nifty 50 index lost 23.90 points or 0.15% at 15,697.60.
In the broader market, the S&P BSE Mid-Cap index slipped 0.02% while the S&P BSE Small-Cap index added 0.25%.
The market breadth was positive. On the BSE, 1,587 shares rose and 1,461 shares fell. A total of 138 shares were unchanged.
Economy:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 48.1 in June from 50.8 in May, slipped below the critical no-change mark of 50.0 for the first time since July 2020. The latest reading pointed to a renewed deterioration in the health of the sector that was, however, moderate.
India's eight infrastructure sectors grew 16.8% in May because of the low base of last year, while statewide lockdowns because of the second wave of the coronavirus pandemic meant the output actually contracted 3.7% from April. Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity count among the core sectors, which constitute 40% of the Index of Industrial Production.
India's fiscal deficit at the end of May came in at 8.2% of the budgeted estimate for FY22 as against 59% in the same period last year, on the back of better revenues and lower subsidy pay out, according to official data released Wednesday. Fiscal deficit in April-May stood at Rs 1.23 lakh crore, data showed. The budget target set for fiscal deficit in FY2021-22 is Rs 11.40 lakh crore.
India's current account deficit (CAD) for the quarter ended March 2021 widened to 1% of GDP, or $8.1 billion, from 0.3% ($2.2 billion) in the preceding quarter on the back of a higher trade deficit. For the quarter ended March 2020, the current account was in a surplus of $600 million due to lower trade volumes.
The Reserve Bank of India (RBI) said that the CAD in Q4FY21 was primarily because of a higher trade deficit and lower net invisible receipts than in the corresponding period of the previous year.
For the full year FY21, the current account balance recorded a surplus of 0.9% of GDP as against a deficit of 0.9% in FY20 on the back of a sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in FY20. This is the first time that the country has recorded an annual current account surplus in 17 years.
India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data released on Wednesday. The external debt to GDP ratio rose to 21.1% as of March-end 2021 from 20.6% a year ago, the data on India's External Debt showed.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 18,22,04,857 with 39,47,035 deaths. India reported 5,23,257 active cases of COVID-19 infection and 3,99,459 deaths while 2,94,88,918 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India added 48,786 new cases of COVID-19 while the national recovery rate improved to 96.97%, according to the Union Health Ministry data updated on Thursday.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.45% to 13.1050. The Nifty 29 July 2021 futures were trading at 15,719.50, at a premium of 21.90 points compared with the spot at 15,697.60.
The Nifty option chain for 29 July 2021 expiry showed maximum Call OI of 24.8 lakh contracts at the 16,000 strike price. Maximum Put OI of 31.1 lakh contracts was seen at 15,500 strike price.
Buzzing Index:
The Nifty Auto index rose 1.09% to 10,716. The index fell 1.02% in the past two sessions.
TVS Motor Company (up 2.33%), Tata Motors (up 1.86%), Balkrishna Industries (up 1.42%) and Ashok Leyland (up 1.06%) were the top gainers in Auto segment.
Bajaj Auto advanced 2.45%. The two-wheeler maker's total sales surged 24% to 3,46,136 units in June 2021 as against 2,78,097 units sold in June 2020. Sequentially, Bajaj Auto's total sales soared 27.32% in June 2021 compared with 2,71,862 units sold in May 2021.
Escorts slipped 1.15%. The company's tractor sales rose 15.5% to 12,533 units in June 2021 from 10,851 units in June 2020. Sequentially, Escorts' total tractor sales zoomed 95.1% in June 2021 compared with 6,423 tractors sold May 2021.
VST Tillers Tractors rallied 2.39% after the company's total sales jumped 13.13% to 3,937 units in June 2021 from 3,480 units sold in June 2020. The company's power tillers sales rose by 12.5% to 3,010 units in June 2021 from 2,675 units in June 2020. Total tractor sales stood at 927 units in June 2021, 15.16% higher than 805 units sold in June 2020.
Stocks in Spotlight:
Cadila Healthcare skid 1.15%. The pharmaceutical major said that it has applied for Emergency Use Authorization (EUA) to the office of Drug Controller General of India (DCGI) for ZyCoV-D - its Plasmid DNA vaccine against COVID-19. ZyCoV-D is a plasmid DNA vaccine which when injected produces the spike protein of the SARS-CoV-2 virus and elicits an immune response mediated by the cellular and humoral arms of the human immune system, which play a vital role in protection from disease as well as viral clearance.
Unichem Laboratories gained 3.24% after the company said it received tentative approval for ANDA of aripiprazole tablets from the US drug regulator. Aripiprazole tablets are a generic version of Abilify of Otsuka Pharmaceutical Co. The drug is indicated for Schizophrenia, Irritability Associated with Autistic Disorder and treatment of Tourette's disorder. Product will be commercialized from Unichem's Ghaziabad plant on receipt of full approval.
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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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