Market pares losses; Nifty regains 9800

Benchmarks further pared gains in mid-afternoon trade. The Nifty reclaimed 9,850 level. At 13:20 IST, the barometer index, the S&P BSE Sensex was down 435.43 points or 1.29% at 33,345.54. The Nifty 50 index was down 118.45 points or 1.19% at 9,854.45.

Global stock markets slumped on Monday on concern over rising coronavirus infections as countries open up after lockdowns. Rising infections in the US, as well as a fresh outbreak in Beijing, sent investors dumping risky assets. The US Dow Jones futures were down 750 points, indicating a weak opening in the US stock market on Monday.

The broader market was mixed. The S&P BSE Mid-Cap index fell 0.49% while the S&P BSE Small-Cap index rose 0.4%.

The market breadth was negative. On the BSE, shares 1,126 rose and 1,292 shares fell. A total of 168 shares were unchanged. In Nifty 50 index, 15 stocks advanced while 35 stocks declined.

Buzzing Index:

The Nifty Auto index slipped 0.85% to Rs 6,503.80. The index rose 2.92% in the past two sessions.

Tata Motors (down 3.47%), Bharat Forge (down 2.48%), Hero MotoCorp (down 1.83%), Bajaj Auto (down 1.42%), Maruti Suzuki (down 0.67%), TVS Motors (down 0.45%) and Ashok Leyland (down 0.35%) were top losers in automobile segment.

Eicher Motors declined 0.88% after the company's consolidated net profit slumped 44.2% to Rs 304.28 crore on 11% drop in net sales to Rs 2,190.32 crore in Q4 March 2020 over Q4 March 2019. Royal Enfield sold 1,63,083 motorcycles in the quarter, registering a decline of 17% from 1,97,567 motorcycles sold over the same period last year. VE commercial vehicles (CV) sold 11,629 trucks and buses in the quarter, registering a decline of 45% from 21,010 trucks and buses sold over the same period in the last financial year. Meanwhile, the board approved 10-for-1 stock split. The company will split each share of face value Rs 10 each into 10 equity shares of face value Re 1 each.

Stocks in Spotlight:

Reliance Industries (RIL) was almost flat at Rs 1588.60. RIL's partly paid-up shares listed on exchanges on Monday (15 June) at a premium. The company issued 44.26 crore partly paid-up shares with face value of Rs 2.5 per share under the rights issue at Rs 314.25 per share. The Rs 53,124 crore rights issue, which opened for subscription on 20 May 2020, concluded on 3 June and garnered 1.6 times subscription. RIL issued shares at Rs 1,257 apiece in the rights issue. The entire payment has to be paid in three tranches. The holders of the partly-paid up shares will have to pay second installment of Rs 314.25 in May 2021 and the balance Rs 628.5 in November 2021. RIL's partly-paid up shares will be converted to fully-paid up shares in November 2021.

Meanwhile, RIL on Saturday (13 June) said global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms for a 0.93% stake and L Catterton, one of the world's largest consumer focused private equity firms, will invest Rs 1,894.50 crore in Jio Platforms for a 0.39% equity stake. With this investment, Jio Platforms has raised Rs 104,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since 22 April 2020.

Tata Power gained 2.5% after the company in a regulatory filing during market hours today announced that it has received a Letter of Award (LoA) from Gujarat Urja Vikas Nigam (GUVNL) to develop a 120 MW solar project in Gujarat. The energy will be supplied to GUVNL under a Power Purchase Agreement (PPA), valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within 18 months from the date of execution of the PPA.

Numbers to Track:

The yield on 10-year benchmark federal paper was flat at 5.796%.

In the foreign exchange market, the partially convertible rupee edged higher to 76.03 compared with its previous closing 75.84.

In the commodities market, Brent crude for August 2020 settlement was down 31 cents to $38.42 a barrel. The contract rose 0.47% to settle at $38.73 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement fell 0.71% to Rs 46,998.

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