The Sensex and the Nifty reversed trend and hit day's low in mid-afternoon trade amid steep selling in largecaps. The Nifty slumped below 11,400 level. At 14:30 IST, the barometer index, the S&P BSE Sensex, fell 155.78 points or 0.4% at 38,698.77. The Nifty 50 index lost 72.4 points or 0.63% at 11,392.05.
The broader market surged after the Securities and Exchange Board of India (SEBI) on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index was up 1.35% while the S&P BSE Small-Cap index jumped 3.4%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1762 shares rose and 918 shares fell. A total of 168 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,175.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 724.31 crore in the Indian equity market on 11 September, provisional data showed.
Broader market Gainers:
Mphasis (up 10.6%), Oberoi Realty (up 7.71%), Shriram City Union (up 6.51%), Kansai Nerolac (up 6.22%), Larsen & Toubro Infotech (up 5.94%) and Balkrishna Industries (up 5%) were top mid-cap gainers.
KPIT Tech (up 16.16%), MCX (up 14.3%), Blue Star (up 14%), Syngene International (up 12%) and Aegis Logistics (up 11.25%) are top small-cap gainers.
To achieve the desired objective of true to label and appropriate benchmarking, SEBI issued a circular dated 11 September 2020 on multi cap schemes of mutual funds, requiring them to invest a minimum of 25% each in large, mid and small cap stocks, with the balance 25% giving flexibility to the fund manager.
SEBI on 13 September 2020 clarified that mutual funds have many options to meet with the requirements, based on the preference of their unit holders. Apart from rebalancing their portfolio in the multi cap schemes, they could facilitate switch to other schemes by unit holders, merge their multi cap scheme with their large cap scheme or convert their multi cap scheme to another scheme category, for instance Large cum mid cap scheme.
SEBI is conscious of market stability and therefore has given time to the mutual funds till 31 January 2021 to achieve compliance, through its preferred route of which rebalancing of the portfolio is only one such route.
Total COVID-19 confirmed cases worldwide stood at 28,902,170 with 9,22,735 deaths. India reported 9,86,598 active cases of COVID-19 infection and 79,722 deaths while 37,80,107 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. India's recovery rate has improved to 77.88%.
The COVID-19 case fatality rate has further dropped to 1.65%.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee edged higher to 73.48 compared with its previous closing 73.535.
The yield on 10-year benchmark federal paper fell to 6.034% compared with previous closing of 6.041% in the previous trading session.
MCX Gold futures for 5 October 2020 settlement rose 0.34% to Rs 51,491.
In the commodities market, Brent crude for November 2020 settlement shed 23 cents to $39.60 a barrel. The contract fell 0.57% to settle at $39.83 in the previous trading sessions on Tuesday.
Stocks in Spotlight:
Persistent Systems soared 14% after the company announced global alliance with Actifio to help enterprises with data stack modernization and acceleration of digital transformation initiatives. The agility of Actifio's multi-cloud copy data management platform will help Persistent deliver modern data protection and instant data access that reduces time to market for new applications while improving security, compliance and governance.
Infosys spurted 3.16% after the IT major announced a definitive agreement to acquire GuideVision, one of the largest ServiceNow Elite Partners in Europe. Infosys will be acquiring 100% equity share capital holding in GuideVision for a cost of acquisition of 30 million Euro, including earn-out and bonuses. The acquisition is expected to close during the third quarter of FY21, subject to customary closing conditions.
Larsen & Toubro (L&T) fell 1.37%. The EPC major said that its construction arm had secured significant orders from clients for its varied businesses. The buildings & factories business of L&T Construction had secured a design & build lump sum Turnkey order from a client in India to construct a grade - A office space in two locations in Bangalore. The water & effluent treatment business of L&T Construction had bagged an order from Punjab Water Supply & Sewerage Board to provide surface-based bulk drinking water supply to Jalandhar town on design, build, operate and transfer basis. L&T GeoStructure had been awarded projects to construct down and up lines of a bypass grade separator in Katni district, Madhya Pradesh. The announcement was made during market hours today. According to the company's classification, the valuation of the said projects lies between Rs 1,000 crore to Rs 2,500 crore.
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