Benchmarks come off day's high; metals correct

The domestic equity barometers sharply came off the day's high in morning trade. The Nifty was trading below the 9,900 mark. Investors turned cautious after Moody's downgraded India's sovereign rating on Monday.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 120.91 points or 0.36% at 33,424.43. The Nifty 50 index gained 32.20 points or 0.33% at 9,858.35.

The broader market traded firm. The S&P BSE Mid-Cap index rose 0.74% while the S&P BSE Small-Cap index added 1.05%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1295 shares rose and 583 shares fell. A total of 125 shares were unchanged.

Moody's Investors Service on Monday downgraded India's rating to BAA3 and maintained the negative outlook. Moody's has downgraded India's local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2.

The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period. Moody's expects prolonged period of slow growth to continue well beyond the pandemic. India's progress has been hamstrung by tardy implementation of reforms, it said.

Buzzing Index:

The Nifty Metal index slipped 0.54% to 1,941.95 amid profit booking after a recent steep surge. The index added 14.2% in the past five sessions while the benchmark Nifty 50 index has gained 8.7% during the same period.

NMDC (down 1.13%), JSW Steel (down 0.85%), Jindal Steel & Power (down 0.62%), Hindustan Zinc (down 0.32%) and Steel Authority of India (down 0.16%) declined.

National Aluminium Company (up 3.5%), Hindustan Copper (up 3.06%), Vedanta (up 1.44%), Hindalco Industries (up 0.97%) and Tata Steel (up 0.51%) advanced.

Earnings today:

Britannia Industries (up 0.50%), InterGlobe Aviation (down 0.80%), Motherson Sumi Systems (up 0.36%), Zydus Wellness (up 2.84%), Sun Pharma Advanced Research Company (up 2.03%), Dhampur Sugar Mills (down 0.57%), Eris Lifesciences (up 0.78%), Tata Teleservices (Maharashtra) (up 3.53%), Spandana Sphoorty Financial (up 2.59%), Transport Corporation of India (up 2.38%) and Granules India (up 2.22%) will announce their quarterly earnings today.

Earnings impact:

V-Guard Industries fell 1.60% to Rs 181.05. The company's consolidated net profit tumbled 47.1% to Rs 32.18 crore on a 27.4% decline in net sales to Rs 541.14 crore in Q4 March 2020 over Q4 March 2019.

Orient Electric surged 4.64% to Rs 186. The company's net profit fell 7.4% to Rs 35.78 crore on a 11.7% decline in net sales to Rs 563.14 crore in Q4 FY20 over Q4 FY19.

Welspun Enterprises was locked in an upper circuit of 5% at Rs 62.75 after the company's standalone net profit rose 5.4% to Rs 48.77 crore in Q4 March 2020 over Q4 March 2019. Standalone net sales stood at Rs 450.43 crore in Q4 March 2020, declining 36.6% from Rs 710.73 crore in Q4 March 2019.

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