Indices hit day's high; FMCG shares climb

Key equity indices extended gains and hit fresh intraday high in mid-afternoon trade, supported by firmness in Reliance Industries and HDFC twins. At 14:30 IST, the barometer index, the S&P BSE Sensex, rose 207.98 points or 0.1% at 38,178.22. The Nifty 50 index was up 53 points or 0.47% at 11,275.85.

The broader market lagged. The S&P BSE Mid-Cap index was up 0.25% while the S&P BSE Small-Cap index was up 0.19%.

The market breadth was negative On the BSE, 1185 shares rose and 1310 shares fell. A total of 179 shares were unchanged.

HDFC Bank (up 1.68%) and HDFC (up 1.35%) advanced.

Reliance Industries (RIL) rose 0.29%. General Atlantic, a leading global growth equity firm, will invest Rs 3,675 crore into Reliance Retail Ventures (RRVL), a subsidiary of RIL. This investment values RRVL at a pre-money equity value of Rs 4.28 lakh crore. General Atlantic's investment will translate into a 0.84% equity stake in RRVL on a fully diluted basis.

Buzzing Index:

The Nifty FMCG jumped 1.9% to 29,993, bouncing back from yesterday's 1.5% decline.

Advanced Enzyme Technologies (up 10.83%), Godrej Consumer Products (up 3.33%), EID Parry (India) (up 3.25%), Dabur India (up 3.09%), KRBL (up 2.98%), Hindustan Unilever (up 2.64%), Dalmia Bharat Sugar & Industries (up 2.53%), Radico Khaitan (up 2.51%), Nestle (up 2.4%), Marico (up 2.16%), Colgate Palmolive (up 2.07%) and United Spirits (up 1.52%) were top gainers in FMCG segment.

Stocks in Spotlight:

Ramco Systems hit an upper circuit of 5% at Rs 426 after the company signed an agreement with a Global Top 5 logistics major. The agreement is for modernizing and transforming the logistics major's multi-country Payroll operations on Ramco's Global Payroll platform. The logistics major will be unifying its payroll operations for 15 countries across Middle East & Africa.

BPCL slumped 7.34% to Rs 357.85 after the Government of India (GoI) extended the deadline for submitting initial bids to buy state-owned oil marketing company. "In view of further requests received from the interested bidders (IBs) and the prevailing situation arising out of COVID-19 pandemic, the last date for submission of EoIs is further extended to 16th November, 2020," GoI said in a statement. The Government had issued a preliminary information memorandum document (PIM) on 7 March 2020 for inviting expression of interest (EOI) for strategic disinvestment of 52.98% stake held by Government of India in BPCL. This is the fourth time that the government has extended the deadline for the submission of EoIs this year.

Economy:

The Reserve Bank of India (RBI) announced India's balance of payments (BoP) figures for the first quarter of FY21 (April - June). India's current account balance (CAB) recorded a surplus of US$ 19.8 billion (3.9% of GDP) in Q1 June 2020 on top of a surplus of $0.6 billion (0.1% of GDP) in the preceding quarter. India recorded a deficit of $15 billion (2.1% of GDP) in the corresponding period last year. The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to $10 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 73.76 compared with its previous closing 73.86.

The yield on 10-year benchmark federal paper fell to 6.017% compared with previous closing of 6.037% in the previous trading session.

MCX Gold futures for 5 October 2020 settlement fell to 0.65% to Rs 50,350.

In the commodities market, Brent crude for November 2020 settlement fell 17 cents to $42.26 a barrel. The contract rose 1.22% to settle at $42.43 in the previous trading session.

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