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Barometers sharply pare gains; most European shares decline

Capital Market 

Key equity indices sharply pared gains in afternoon trade. At 13:23 IST, the barometer index, the S&P BSE Sensex, was up 108.40 points or 0.28% at 38,865.03. The Nifty 50 index added 37.05 points or 0.32% at 11,477.10.

Cipla (up 3.52), Dr. Reddy (up 3.41%), Sun Pharma (up 2.67%), UPL (up 2.12%) and Grasim (up 1.82%) were the top Nifty gainers.

Maruti Suzuki (down 1.43%), Eicher Motors (down 1.28%), Bajaj Finserv (down 1.15%), ITC (down 1.12%) and Bajaj Auto (down 0.93%) were the top Nifty losers.

The broader market advanced for second trading session after the 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 gained 0.65% while the S&P BSE Small-Cap index rose 1.07%. In two sessions, the midcap index and the smallcap index have added 2.19% and 5.11%, respectively, while the benchmark Sensex has risen 0.09% during the same period.

Buyers outpaced sellers. On the BSE, 1403 shares rose and 1124 shares fell. A total of 179 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 298.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 120.35 crore in the Indian equity market on 14 September, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 29,190,588 with 9,27,245 deaths. India reported 9,90,061 active cases of COVID-19 infection and 80,776 deaths while 38,59,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's retail inflation which is measured by the Consumer Price Index (CPI) eased to 6.69% in the month of August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The CPI for the month of July was revised to 6.73% from 6.93%.

The Scheduled commercial banks (SCBs) credit growth was steady on sequential basis to 5.5% YoY to Rs 1,02,11,730 crore as on 28 August 2020, compared with 5.5% growth a fortnight ago. The credit growth has decelerated from 10.2% at end July 2019. Aggregate deposits growth of the scheduled banks increased 10.9% YoY at Rs 1,41,76,765 crore as on 28 August 2020, compared with 11.0% growth a fortnight ago and 9.7% rise a year ago.

RBI Mandates Automated Recognition of NPAs:

The Reserve Bank of India (RBI) on Monday mandated the automation of bad-loan recognition by banks by 30 June 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly. In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements. The system-based asset classification shall be an ongoing exercise for both downgradation and upgradation of accounts.

Buzzing Index:

The Nifty IT index rose 0.69% to 19,639. The index has gained 7.54% in four sessions.

Info Edge India (up 3.14%), Mphasis (up 3.31%), Larsen & Toubro Infotech (up 2.85%), MindTree (up 2.38%) and TCS (up 0.95%) edged higher.

Stocks in Spotlight:

ICICI Bank rose 2.03% to Rs 371.05 after the bank on Monday (14 September) said it has got exemption from paring stake in its life and non-life subsidiaries to 30% for a period of three years.

The bank held 51.37% stake in ICICI Prudential Life Insurance Company and 51.89% stake in ICICI Lombard General Insurance Company as on 30 June 2020.

Indiabulls Housing Finance on Monday (14 September) said it raised Rs 682.87 crore through qualified institutions placement (QIP) of 3.47 crore equity shares at Rs 196.37 each, at a 5% discount to the floor price of Rs 206.70 per share. The QIP issue opened on 9 September 2020 and closed on 14 September 2020. Further, the company informed about the sale of a portion of its stake in OakNorth Holding to an existing sovereign shareholder of the bank for Rs 82 crore.

Global Markets:

The US Jones 30 Futures were up 70 points, indicating a mildly positive start to equities on Wall Street today.

Most European shares opened lower while most Asian stocks advanced on Tuesday as investors focused on upcoming central bank meetings by the U. S. Federal Reserve, Bank of Japan and Bank of England.

Retail sales in China rose 0.5% in August from a year ago, the first positive report for the year so far, China's National Bureau of Statistics said Tuesday. Still, retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said.

China's industrial production grew 5.6% in August from a year ago while fixed-asset investment declined 0.3% for the first eight months of the year.

US stocks ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism. Tech sentiment was lifted by news of Nvidia buying chipmaker Arm Holdings from SoftBank for $40 billion.

Meanwhile, ByteDance rejected Microsoft's bid to buy TikTok's U. S. operations. Instead, ByteDance has chosen Oracle to be TikTok's U. S. technology partner, and Oracle will take a significant stake in the business.

Sentiment was also boosted by signs of progress toward a coronavirus vaccine. AstraZeneca resumed phase three trials for its coronavirus vaccine in the U. K. following a halt due to safety concerns. However, its trials in the U. S. remains on hold as American regulators investigate the side effects flagged in the U. K. study, reports showed.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, September 15 2020. 13:24 IST
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