Indices near day's high; Nifty scales 11,300

Key indices were trading with modest gains near day's high in morning trade. The Nifty was trading well above its 11,300 mark. Buying was broad based with metal, IT and auto making the biggest moves.

At 10:26 IST, the barometer index, the S&P BSE Sensex, added 265.56 points or 0.7% at 38,316.05. The Nifty 50 index was up 84.4 points or 0.75% at 11,331.10.

The broader market traded with gains. The S&P BSE Mid-Cap index gained 0.73% while the S&P BSE Small-Cap index edged 1.05% higher.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1523 shares rose and 681 shares fell. A total of 136 shares were unchanged.

AGR Hearing:

The Supreme Court adjourned AGR case hearing till Wednesday, 19 August 2020. The media reported that solicitor assured government is in full support of any decision Supreme Court takes to help recover AGR dues. Further, the apex court pointed out that Jio is earning revenue by using RCom's spectrum and subsequently the court has seek government's position on making Jio liable for RCom dues. The court also asked RCom to explain the fall in the value of its assets, even as the government said that airwaves of all telcos, including that of bankrupt companies like RCom, belong to the government.

Earnings Today:

Zee Entertainment (down 2.44%), FACT (up 1.53%), Hindustan Aeronautics (up 0.74%), KNR Construction (down 1.32%) and JK Cement (down 0.03%) are some of the companies that will announce their quarterly results today.

Earnings Impact:

Petronet LNG gained 1.63%. The company posted 11.1% decline in consolidated net profit to Rs 499.79 crore in Q1 June 2020 as against Rs 561.94 crore in Q1 June 2019. Consolidated revenue from operations stood at Rs 4883.57 crore in Q1 June 2020, a decline of 43.3% over Rs 8,613.44 crore in Q1 June 2019. Petronet LNG posted a profit before tax of Rs 676.16 crore in quarter ending June 2020, nearly 20% lower from Rs 839.59 crore in quarter ending June 2019. Total tax expense declined 36.4% to Rs 176.37 crore in Q1 June 2020 over Q1 June 2019. The operations of the company were not materially interrupted during the lockdown due to outbreak of COVID-19, as natural gas is declared as one of the essential commodities by the Government of India. Petronet added that it has healthy liquidity position and there is no uncertainty in the going concern of the company.

HFCL reported 80.9% drop in consolidated net profit to Rs 21.09 crore on 47.9% decline in net sales to Rs 699.76 crore in Q1 June 2020 over Q1 June 2019. Profit before tax in Q1 FY21 stood at Rs 29.17 crore, down by 81.5% from Rs 157.37 crore in Q1 FY20. Current tax expense decreased 78.1% year-on-year (YoY) to Rs 6.87 crore during the quarter. On the segmental front, telecom products revenue was at Rs 189.34 crore (down 47.7% YoY) while the revenue from turnkey contracts and services was at Rs 510.42 crore (down 48% YoY) in the quarter ended on 30 June 2020.

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