Broader market outperforms; breadth positive

Equity indices traded in a narrow range with tiny losses in early afternoon trade. The Nifty traded above the 16,250 level. The Reserve Bank of India kept repo rate unchanged at 4%.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was down 128.69 points or 0.24% at 54,364.56. The Nifty 50 index fell 30.45 points or 0.19% at 16,264.50.

The broader market outperformed and traded with gains. The S&P BSE Mid-Cap index was up 0.53% while the S&P BSE Small-Cap index was up 0.57%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1812 shares rose and 1266 shares fell. A total of 109 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 200,819,674 with 4,266,478 global deaths.

India reported 414,159 active cases of COVID-19 infection and 426,754 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

RBI MPC Outcome:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 4% while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 6 August 2021.

RBI's MPC began its bi-monthly monetary policy deliberations on Wednesday, 4 August 2021. Following the meet, RBI on Friday (6 August 2021) kept the benchmark interest rate unchanged amid COVID-19 uncertainty. Repo rate (lending rate) will continue at 4% and reverse repo rate (RBI's borrowing rate) at 3.35%. The central bank has maintained an accommodative stance.

MPC sees CPI inflation at 5.7% in 2021-22 as against 5.1% projected earlier. The CPI inflation is expected to be 5.9% in Q2 FY22, 5.3% in Q3 FY22, 5.8% in Q4 FY22. The CPI inflation is projected to be at 5.1% in Q1 FY23. GDP growth is projected at 9.5% in Financial Year 2021-22.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.14% to 12.725. The Nifty 26 August 2021 futures were trading at 16,280, at a premium of 6.05 points as compared with the spot at 16,273.95.

The Nifty option chain for 26 August 2021 expiry showed maximum Call OI of 21.5 lakh contracts at the 16,500 strike price. Maximum Put OI of 49.9 lakh contracts was seen at 15,000 strike price.

Stocks in Spotlight:

JMC Projects (India) advanced 2.65% to Rs 121.95 after the company secured new water project orders in India worth Rs 1,451 crore. S. K. Tripathi, managing director (MD) and chief executive officer (CEO) of JMC Projects (India) said, "We are pleased with the new order wins in our water business. These orders will contribute significantly towards the growth of the water business and further widen our client portfolio. With these orders, our YTD FY22 order inflows have surpassed Rs 6,000 crore with a strong growth over last year. The current order book along with above orders will help us to deliver consistent growth over the next few years."

TAKE Solutions jumped 6.91% to Rs 64.20 after the company announced a strategic partnership with H.I.G. Capital to accelerate growth of Navitas Life Sciences, a wholly owned subsidiary of the company. In an exchange filing made before market hours today, the company said that it has entered into a definitive agreement for a strategic partnership with an affiliate of H.I.G. Capital, a leading global alternative investment firm with $45 billion of equity capital under management. Through this strategic alliance, an affiliate of H.I.G. will be acquiring a 75% stake of Navitas Life Sciences, a wholly owned subsidiary of TAKE Solutions, to support the current management team in accelerating their growth plan and enabling the company to capture future Navitas growth potential.

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