Benchmarks further pare gains; metal stocks outperform

The domestic equity barometers further pared gain in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 176.64 points or 0.46% at 38,358.72. The Nifty 50 index added 44.20 points or 0.39% at 11,314.35.

In the broader market, the S&P BSE Mid-Cap index gained 0.08% while the S&P BSE Small-Cap index rose 0.22%.

The market breadth was strong. On the BSE, 1460 shares rose and 1039 shares fell. A total of 136 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 20,090,541 with 736,208 deaths. India reported 6,39,929 active cases of COVID-19 infection and 45,257 deaths while 15,83,489 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 3.06% to 21.82. The Nifty August 2020 futures were trading at 11,318.35, at a premium of 4 points compared with the spot at 11,314.35.

The Nifty weekly option chain for 13 August 2020 expiry showed maximum Call OI 37.53 lakh contracts at the 11,400 strike price. Maximum Put OI of 26.91 lakh contracts was seen at 11,000 strike price.

The Nifty option chain for 27 August 2020 expiry showed maximum Call OI of 21.89 lakh contracts at the 11,500 strike price. Maximum Put OI of 33.94 lakh contracts was seen at 11,000 strike price.

Buzzing Index :

The Nifty Metal index rose 2.37% to 2,389.20. The index has added 11.9% in eight sessions while the benchmark Nifty 50 index has gained 1.8% during the same period.

Jindal Steel & Power (up 6.03%), Hindustan Copper (up 5.53%), SAIL (up 5.12%), Welspun Corp (up 4.97%), Hindustan Zinc (up 4.03%), JSW Steel (up 3.41%), National Aluminum Co. (up 2.59%) and Tata Steel (up 2.25%) advanced.

Earnings Impact:

Power Grid Corporation of Indiashed 0.17% to Rs 177. The company's consolidated net profit fell 18.15% to Rs 2,048.42 crore on 9.24% rise in total income to Rs 10,258.67 crore in Q1 June 2020 over Q1 June 2019.

The state-owned entity has given a consolidated one-time rebate of Rs 1,075 crore to DISCOMs and Power Departments of States / Union Territories for passing on to end consumers on account of COVID-19 pandemic against the billing of April 2020 and May 2020. Due to this consolidated one-time rebate, there is a reduction in the profit for the current quarter.

HEG rose 1.58% to Rs 817. The company's consolidated net profit slumped 95.4% to Rs 10.76 crore on 71.4% decline in net sales to Rs 233.29 crore in Q1 June 2020 over Q1 June 2019.

"Since the lockdown was in force for a significant period of the quarter, the company's operations and financial results for the quarter ended 30 June 2020 have been adversely impacted," the company said in a statement.

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