Benchmarks hit day's low; Nifty below 10,750

Key barometers reversed gains and hit the day's low in mid-morning trade. Profit booking emerged after a rally in the past four trading sessions. The US Dow Jones futures were down 134 points, indicating a weak start in US markets.

At 11:28 IST, the barometer index, the S&P BSE Sensex, fell 112.13 points or 0.31% at 36,374.16. The Nifty 50 index was down 44.1 points or 0.41% at 10,719.55.

The broader market was mixed. The S&P BSE Mid-Cap index was down 0.3% while the S&P BSE Small-Cap index was marginally up by 0.06%.

The market breadth was positive. On the BSE, 1151 shares rose and 1009 shares fell. A total of 122 shares were unchanged. In Nifty 50 index the breadth was negative with 20 stocks advancing and 30 stocks declining.

Foreign portfolio investors (FPIs) bought shares worth Rs 348.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 263.47 crore in the Indian equity market on 6 July, provisional data showed.

Buzzing Index:

The Nifty IT index rose 1.39% to 15,679.65, rising for fourth consecutive trading sessions. The index has gained 6.43% in four trading days.

The IT stocks witnessed demand after rupee edged lower in currency market. In the foreign exchange market, the partially convertible rupee edged lower to 74.7150 compared with its previous closing 74.6850.

NIIT Technologies (up 9.49%), Infosys (up 2.45%), Info Edge (up 2.24%), MindTree (up 1.96%), HCL Technologies (up 1.93%), Wipro (up 1.91%), MphasiS (up 0.97%) and Tech Mahindra (up 0.84%) were top gainers in IT segment.

TCS fell 0.41%. On Monday (6 July), JP Morgan Funds purchased 11.23 lakh equity shares, or 0.03% stake, of TCS at an average price of Rs 2,199 per share via block deal on the BSE. JP Morgan Funds acquired the shares from Flagship Indian Investment Company (Mauritius).

TCS board will consider Q1 results on 9 July 2020.

Stocks in Spotlight:

Shares of Godrej Consumer Products fell 1.92% to Rs 694. The company on Monday (6 July) said that it expected to post mid single-digit sales growth in Q1 June 2020 in India, driven by higher volumes.

Tata Power was up 0.89%. The power utility said its wholly owned subsidiary Trust Energy Resources completed the sale of its three ships viz. MV Trust Agility, MV Trust Integrity and MV Trust Amity to Oldendorff Carriers GmbH & Co. KG, Germany for a consideration of $212.76 million. The sale proceeds will be used towards reducing the debt as well as to fund future growth plans.

Global Markets:

Asian stocks were mixed on Tuesday as investors weighed growing expectations of an economic rebound with rising COVID-19 cases.

In US, stocks finished sharply higher Monday, with the Nasdaq scoring a record close, as a rebound in U.S. services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States. The gains came despite a record surge in new COVID-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.

Amazon.com rose 5.8% to close at $3,057 a share, topping the $3,000 level for the first time in its history and clinching a $1.5 trillion valuation.

The Institute for Supply Management's (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, a report showed.

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