Nifty trades flat in lackluster trade

The Sensex was trading with modest loss while the Nifty was trading flat in early afternoon trade. Gains were capped due to rising coronavirus cases in India. The Nifty hovered around the 11,200 mark.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 111.03 points or 0.29% at 37,914.37. The Nifty 50 index was up 1.45 points or 0.01% at 11,201.25.

The broader market traded with strong gains. The S&P BSE Mid-Cap index added 1.37% while the S&P BSE Small-Cap index climbed 0.9%.

The market breadth is strong. On the BSE, 1574 shares rose and 898 shares fell. A total of 133 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 637.43 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 468 crore in the Indian equity market on 6 August, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 19,025,580 with 713,845 deaths. India reported 6,07,384 active cases of COVID-19 infection and 41,585 deaths while 13,78,105 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.66% to 22.995. The Nifty August 2020 futures were trading at 11,193, at a premium of 10.2 points compared with the spot at 11,182.80.

The Nifty weekly option chain for 13 August 2020 expiry showed maximum Call OI 25.89 lakh contracts at the 11,200 strike price. Maximum Put OI of 26.88 lakh contracts was seen at 11,000 strike price.

The Nifty option chain for 27 August 2020 expiry showed maximum Call OI of 22.11 lakh contracts at the 11,500 strike price. Maximum Put OI of 32.47 lakh contracts was seen at 11,000 strike price.

Earnings Impact:

Vodafone Idea was up 0.48%. The telco reported a consolidated net loss of Rs 25,460 crore in Q1 FY21, higher than net loss of Rs 4,873.90 crore in Q1 FY20. Gross revenue in Q1 June 2020 stood at Rs 10,659.30 crore, down by 5.4% from Rs 11,269.90 crore in Q1 June 2019. Average revenue per user (ARPU) blended rose 5.6% to Rs 114 in Q1 June 2020 from Rs 108 in Q1 June 2019. Sequentially, however, ARPU declined 5.8% from Rs 121 in Q4 March 2020. The company's total data subscribers decreased 5.3% to 13.57 crore customers in Q1 June 2020 from 14.33 crore customers in Q1 June 2019. The teleco recorded an exceptional expense of Rs 19,923.20 crore during the first quarter. Of the total sum, Rs 19,440.50 crore is for license fees and SUC (spectrum usage charges) on AGR (adjusted gross revenues) and Rs 123 crore is for one-time spectrum charge (including interest). Vodafone Idea's independent auditor's review report highlighted the company's material uncertainty on going concern.

Torrent Power rallied 7.54% to Rs 352.15 after consolidated net profit jumped 35.2% to Rs 373.87 crore on 19.5% decline in net sales to Rs 3,007.05 crore in Q1 June 2020 over Q1 June 2019. The major drivers of increase in the reported total comprehensive income for the quarter are favourable order from the Appellate Tribunal For Electricity in respect of disputed carrying cost recovery pertaining to an earlier years. It was also boosted by increase in contribution from gas-based power plants including due to operationalisation of long term PPA for 278 MWs capacity from Q2 19-20, partially offset by lower contribution from merchant power sales. Total comprehensive income was also driven by decrease in interest cost, mainly due to repayment of loans and reduction in interest rates.

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