Sensex, Nifty hover in range; auto stocks climb

Key barometers were trading in a narrow range near the day's high in early afternoon trade. At 12:26 IST, the barometer index, the S&P BSE Sensex, was up 487.37 points or 1.42% at 34,774.61. The Nifty 50 index added 150.30 points or 1.48% at 10,292.45.

Global cues were upbeat following a surprise recovery in US employment rate in May. Strong inflows from foreign portfolio investors (FPIs) also boosted investors confidence. FPIs purchased Indian shares worth Rs 15,620.19 crore so far in June 2020 (till 5 June).

In the broader market, the S&P BSE Mid-Cap index rose 1.32%. The S&P BSE Small-Cap index gained 2.21%.

Buyers outpaced sellers. On the BSE, 1930 shares rose and 524 shares fell. A total of 150 shares were unchanged. In the Nifty 50 index, 39 shares advanced while 11 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.16% to 29.3. The Nifty June 2020 futures were trading at 10,280.35, a discount of 12.1 points compared with the spot at 10,292.45.

On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 17.15 lakh contracts at the 10,000 strike price. Maximum put OI of 34.57 lakh contracts was seen at 9,000 strike price.

Buzzing Index:

The Nifty Auto index added 1.33% to 6,717.15. The index has added 23.7% in fourteen sessions.

Ashok Leyland (up 8.07%), Tata Motors (up 6.5%), Hero MotoCorp (up 3.9%), Mahindra & Mahindra (up 0.9%), Maruti Suzuki India (up 0.85%), Bajaj Auto (up 0.72%) and TVS Motor Company (up 0.28%) advanced.

Eicher Motors (down 1.22%) and Escorts (down 0.06%) declined.

Stocks in Spotlight:

Reliance Industries (RIL) rose 1.4% to Rs 1602.95 after the company on Sunday announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) invested Rs 5,683.50 crore in Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. ADIA's investment will translate into a 1.16% equity stake in Jio Platforms on a fully diluted basis.

Jio Platforms has so far raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.

Meanwhile, RIL informed post market hours on Friday (5 June) that Silver Lake and its co-investors will invest an additional Rs 4,546.80 crore in Jio Platforms, in addition to the Rs 5,655.75 crore of investment by Silver Lake announced on 4 May 2020. This brings the aggregate investment by Silver Lake and its co-investors to Rs 10,202.55 crore. Silver Lake's investment will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis.

RIL informed during market hours on Friday (5 June) that Abu Dhabi-based Mubadala Investment Company will invest Rs 9,093.60 crore in Jio Platforms for a 1.85% equity stake. Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.

Lupin shed 0.06% to Rs 901.80. The pharma major announced that the US Food and Drug Administration (US FDA) has granted Orphan Drug Designation (ODD) to mexiletine hydrochloride for the treatment of myotonic disorders. The FDA grants ODD status to medicines intended for the treatment, diagnosis or prevention of rare diseases or disorders that affect fewer than 200,000 people in the US.

Tata Power Company slipped 0.57% to Rs 901.35. The integrated power utility has signed a memorandum of understanding (MoU) with MG Motor. As part of the association, Tata Power will deploy 50KW DC superfast chargers at select MG dealership locations and offer end-to-end EV charging solutions to MG dealerships spread across India.

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