The benchmark indices were trading with modest gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, jumped 213.44 points or 0.41% at 52,062.92. The Nifty 50 index advanced 73.25 points or 0.47% at 15,649.45.
In the broader market, the S&P BSE Mid-Cap index rose 1.03% while the S&P BSE Small-Cap index gained 1.29%.
The market breadth was strong. On the BSE, 2,120 shares rose and 884 shares fell. A total of 152 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 8.35% to 15.7725. The Nifty 24 June 2021 futures were trading at 15,688.60, at a premium of 39.15 points as compared with the spot at 15,649.45.
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The Nifty option chain for 24 June 2021 expiry showed maximum Call OI of 24.2 lakh contracts at the 16,000 strike price. Maximum Put OI of 30.4 lakh contracts was seen at 15,000 strike price.
Buzzing Index:
The Nifty Metal index rose 1.27% to 5,299.65. The index has added 3.47% in two sessions.
Adani Enterprises (up 4.22%), APL Apollo Tubes (up 2.61%), NMDC (up 1.83%), Vedanta (up 1.74%) and JSW Steel (up 1.37%) advanced.
Stocks in Spotlight:
Wipro fell 0.06%. The IT major on Wednesday announced a partnership with Finastra to help corporate banks across Asia Pacific accelerate their digital transformation. The companies will create a unique offering that combines Wipro's comprehensive services catalogue with Finastra's front-to-back trade finance and cash-management solutions.
MTAR Technologies advanced 3.18% after the company's consolidated net profit surged 103% to Rs 18.01 crore on 12.3% rise in net sales to Rs 69.16 crore in Q4 FY21 over Q4 FY20. Profit before tax jumped 97.7% to Rs 25.24 crore in Q4 FY21 compared with Rs 12.77 crore in Q4 FY20. EBITDA soared 107% to Rs 30.1 crore in Q4 FY21 from Rs 14.5 crore posted in Q4 FY20. The company's order book stood at Rs 415.9 crore as of 31 March 2021 compared with Rs 345.1 crore on 1 April 2020.
Ruchi Soya Industries hit an upper circuit of 5% at Rs 1,137.50 after the company said it has forayed into the nutraceuticals and wellness products segment. The board of the directors of Ruchi Soya Industries have approved the launch of 100% vegetarian, preservative free nutraceutical products to be marketed under "Patanjali" and "Nutrela" branding in the medical, sports and general nutrition category.
The company is launching 10 products, viz. Vitamin B12, Iron complex, Vitamin D, Vitamin C & Zinc complex, Daily active, Daily Energy, Weight Gain and Omega and shall soon introduce additional products in the market. Ruchi Soya Industries aims to have a range of products across various product categories in the next one year.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 17,16,75,856 with 36,91,552 deaths. India reported 17,13,413 active cases of COVID-19 infection and 3,37,989 deaths while 2,63,90,584 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India's daily new COVID-19 cases continued to remain below 2 lakh for the seventh day in a row. The country reported 1,34,154 new COVID-19 cases and 2,887 deaths on Thursday. A total of 2,11,499 patients have been discharged in the last 24 hours, taking the country's active cases tally to 17,13,413.
Services PMI:
IHS Markit India Services PMI stood at 46.4 in May, down from 54.0 in April. The figure contracted for the first time in eight months. The latest reading pointed to a solid rate of reduction that was nevertheless slower than those seen in the aftermath of the COVID-19 outbreak. According to panel members, the fall in output stemmed from the escalation of the pandemic and the reintroduction of restrictions.
Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: "While PMI data released at the start of the month showed that the manufacturing industry managed to keep its head above water in May, the service sector struggled as the pandemic escalated."The intensification of the COVID-19 crisis and associated restrictions suppressed domestic and international demand for Indian services. Total sales decreased for the first time in eight months, while the fall in external orders was the most pronounced since last November."Amid efforts to keep a lid on expenses given the deterioration in new business, services companies reduced payroll numbers to the greatest extent in seven months. Concerns towards the outlook, evidenced by a dip in sentiment, could prevent job creation in the near-term.Anecdotal evidence indicated that a fall in staff expenses indeed helped curb the rate of input price inflation. Yet, the overall rise in cost burdens was historically sharp as prices for a wide range of inputs and fuel continued to surge. Only a small proportion of firms shared additional cost burdens with their clients, resulting in only a marginal increase in services fees."
Economy:
India's merchandise exports in the last month recorded a steep rise of over 67% compared to the corresponding period last year. The Union Commerce & Industry Ministry has informed that in the month of May this year the total merchandise export from the country stood at over $32 billion.
It informed that the figure is nearly 8% higher even when compared to the pre COVID statistics for the month of May in 2019. Collectively the merchandise export for the month of April and May this year is more than 12.5% as compared to the corresponding period in the year 2019.
The Commerce Ministry also informed that the merchandise imports in the first two months of the current financial year has been recorded to be 5.41% less than that of the corresponding period in 2019. However, due to the value of the imports pegged at around $38 billion, the country has registered a trade deficit of over $6 billion in the previous month.
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