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Benchmarks hit day's low; RIL drags

Capital Market 

Domestic equity benchmarks hit fresh intraday low in afternoon trade, dragged by weakness in Reliance Industries and IT pivotals. At 13:24 IST, the barometer index, the S&P BSE Sensex, slipped 150.52 points or 0.39% at 38,342.43. The Nifty 50 index was down 15.35 points or 0.14% at 11,285.20.

Tata Steel (up 4.83%), Grasim Industries (up 3.80%), Bharti Infratel (up 3.23%), UltraTech Cement (up 2.48%), JSW Steel (up 2.23%) were the top Nifty gainers.

Reliance Industries (down 2.59%), TCS (down 1.25%), Infosys (down 0.73%) were major index shakers.

HCL Technologies (down 1.87%), Mahindra & Mahindra (down 1.60%), BPCL (down 1.32%) and Hero MotoCorp (down 1.21%) were other major losers.

In the broader market, the S&P BSE Mid-Cap index gained 0.88% while the S&P BSE Small-Cap index added 0.97%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1481 shares rose and 1039 shares fell. A total of 149 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 245.95 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,017.40 crore in the Indian equity market on 28 July, provisional data showed.

The government has reportedly picked Edelweiss Financial Services and Deloitte as the two pre-initial public offer (IPO) transaction advisors for the listing of the country's biggest insurer - Life Insurance Corporation of India (LIC), whose public offer is expected to be the largest ever in the history of the domestic capital markets.

Following the report, shares of Edelweiss Financial Services hit an upper circuit limit of 5% at 77.85.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 16,670,063 with 659,077 deaths. India reported 5,09,447 active cases of COVID-19 infection and 34,193 deaths while 9,88,029 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty IT index fell 0.66% amid some bit of profit taking. The index had gained 5.85% in the past three sessions.

Among the index constituents, Mphasis (down 1.15%), TCS (down 0.99%), Tech Mahindra (down 0.97%), Infosys (down 0.71%), MindTree (down 0.28%) and Larsen & Toubro Infotech (down 0.01%) edged lower.

Meanwhile, NIIT Technologies (up 4.98%), Info Edge India (up 0.65%) and Wipro (up 0.56%) edged higher.

Earnings Today:

Bharti Airtel (down 0.08%), Dr Reddy's Laboratories (up 1.63%) and Maruti Suzuki India (down 1.39%) are Nifty companies that will announce their quarterly earnings today.

Earnings Impact:

Nestle India fell 2.57% to Rs 16,659.95. The FMCG major reported a 11.15% rise in net profit to Rs 486.6 crore in Q2 June 2020 from Rs 437.79 crore in Q2 June 2019. Revenue from operations stood at Rs 3050.48 crore in Q2 June 2020, rising 1.66% from Rs 3000.85 crore in the same period last year.

Nestle said its total sales grew at 2% while domestic sales grew at 2.6%. The company's export sales declined by 9.3%. Sales were adversely impacted due to the COVID-19 induced lockdown leading to production disruption across factories. Demand in out of home channel was also severely reduced, the company added.

IndusInd Bank jumped 5% to Rs 553.25. The private lender's standalone net profit slumped 67.84% to Rs 460.64 crore on 0.65% rise in total income to Rs 8,680.92 crore in Q1 June 2020 over Q1 June 2019.

The ratio of gross NPAs to gross advances stood at 2.53% as on 30 June 2020 as against 2.45% as on 31 March 2020 and 2.15% as on 30 June 2019. The bank's provisions and contingencies surged 424.56% to Rs 2,258.88 crore in Q1FY21 over Rs 430.62 crore in Q1FY20.

Meanwhile, the bank's board approved issuing over 4,76,29,768 equity shares on preferential basis at issue price of Rs 524 per share to Route One Offshore Master Fund LP Route One Fund I LP, ICICI Prudential Life Insurance Company, Tata Investment Corporation and AIA Company.

The board also approved issuing over 1,51,17,477 equity shares on preferential basis at Rs 524 per share to promoter IndusInd International Holdings and Hinduja Capital (non-QIBs).

Global Markets:

European markets advanced while Asian shares were mixed on Wednesday as rising global coronavirus cases weighed on investor sentiment, while the new U.S. relief package unveiled by Republicans hit an impasse in Washington.

Hong Kong Chief Executive Carrie Lam has reportedly warned that the city faces an outbreak that could lead to the "collapse" of its hospital system, with 106 new cases reported Tuesday. In France, confirmed cases rose to 183,804 from 183,079 on Monday.

In US, stocks indexes closed lower Tuesday, as tech shares were under pressure and lawmakers continued their debate over the next coronavirus relief package. Shares of Amazon slipped 1.8% and Netflix declined by 1.4%. Alphabet shares fell 1.7%. Facebook shares dipped 1.5% and Apple closed 1.6% lower.

US Senate Majority Leader Mitch McConnell unveiled Senate Republicans' proposed $1 trillion coronavirus aid bill on Monday, but Democrats have criticized the package's limitations compared to a $3 trillion proposal that passed the House of Representatives in May. Complicating matters further, President Donald Trump on Tuesday voiced disagreement with some aspects of the bill, though talks are continuing.

On the vaccine front, Moderna Inc. kicked off its late-stage trial while Pfizer Inc and BioNTech entered late-stage trials of their candidates also.

The Federal Reserve began a two-day policy meeting on Tuesday that is expected to see Chairman Jerome Powell underline a willingness to take further action to support the economy and maintain easy financial conditions.

The Fed on Tuesday announced that its board of governors had decided to extend until the end of the year several emergency loan programs that had been set to expire on Sept. 30.

In US economic data, the Conference Board's consumer-confidence index fell to 92.6 in July from a revised 98.3 reading in June. The measure of how consumers feel about the economy right now actually rose to 94.2 in July from 86.7, but the subindex that gauges expectations about the future fell to a four-month low 91.5 from 106.1 in June.

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

First Published: Wed, July 29 2020. 13:25 IST