Indices trade with minor gains; hotel stocks in demand

Key benchmarks traded with small gains in morning trade. Profit booking was witnessed after a rally in the past four sessions. The Nifty held above 10,750 level and traded higher.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 54.88 points or 0.15% at 36,542.16. The Nifty 50 index was up 14.85 points or 0.14% at 10,778.50.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was up 0.4% while the S&P BSE Small-Cap index was added 0.79%.

The market breadth, indicating the overall health of the market, 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 Segment:

Shares of hotel companies rose after the Maharashtra government allowed hotels to reopen with 33% capacity from 8 July. Kamat Hotels (up 13.24%), Chalet Hotels (up 8.69%), Lemon Tree Hotels (up 4.85%), TajGVK Hotels (up 4.32%), Indian Hotels Company (up 3.38%), HLV (up 2.25%), EIH (up 2.2%) and ITDC (up 0.85%) advanced.

Stocks in Spotlight:

Glenmark Pharmaceuticals (down 1.59%), Indiabulls Housing Finance (up 1.04%), Vodafone Idea (down 1.53%), Steel Authority of India (up 2.83%) and BHEL (down 0.8%) are banned from trading in NSE's F&O segment for today after the securities crossed 95% of market wide position limit.

Bandhan Bank jumped 4.68% on reporting strong growth in advances and deposits in Q1 June 2020. The private lender's loans & advances (on book+off book+TLTRO investments) jumped 18% year-on-year to Rs 74,325 crore (merged) in Q1 June 2020 as against Rs 63,164 crore in Q1 June 2019. Total deposits rose 35% to Rs 60,602 in Q1 June 2020 from Rs 44,796 crore in Q1 June 2018. Retail to total deposits were flat at 78% in Q1 June 2020 over Q1 June 2019. CASA deposits were reported at Rs 22,473 crore during the quarter, rising 47% from Rs 15,257 crore in the corresponding quarter last year. CASA ratio improved to 37.1% in Q1 June 2020 from 34.1% in the same quarter last year.

Bajaj Finance rose 2.71% after the company's asset under management (AUM) under moratorium reduced to about 15.5% as of 30 June from 27% as of end April. The company's customer franchise stood at 43 million as of 30 June 2020, up by 16.5% or 0.5 million from 36.9 million as on 30 June 2019. New loans booked during Q1 FY21 were down by 76.7% to 1.7 million as compared to 7.3 million in Q1 FY20. Assets under management (AUM) increased by 7.8% to approximately Rs 1.38 lakh crore as of 30 June 2020 as compared to approximately Rs 1.28 lakh crore as of 30 June 2019. The company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.4% as of 30 June 2020, the NBFC said. With consolidated liquidity surplus of approximately Rs 17,600 crore as of 30 June 2020, the company's liquidity position remains very strong, it added. Bajaj Finance's deposit book grew 32.6% to Rs 20,000 crore in Q1 FY21 from Rs 15,084 crore in Q1 FY20.

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