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Market drifts lower in early trade

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Local stocks are trading lower in early trade after logging gains in the prior three trading sessions. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 115.62 points or 0.37% at 30,817.28. The Nifty 50 index was down 34.20 points or 0.38% at 9,072.05.

The S&P BSE Mid-Cap index was off 0.17%. The S&P BSE Small-Cap index was up 0.24%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 512 shares rose and 442 shares fell. A total of 58 shares were unchanged.

Cues to watch:

Reserve Bank of India (RBI) governor Shaktikanta Das will address a press conference today at 10:00 IST. This will be third presser of the governor in the context of COVID-19 related measures in last two months. As per reports, the governor may announce an extension of the loan moratorium for term loans for a few more months in the backdrop of extension of the nationwide lockdown till May 31. Secondly, the governor could announce the continuation of the liquidity support measures for banks to lend to Non-banking finance companies and small industrial units in view of the prolonged stress in the economy. The governor may also comment on the recent economic package announced by the government to counter the Covid-impact in the economy.

Stocks in news:

Reliance Industries (RIL) rose 0.68%. RIL and Jio Platforms announced today that KKR will invest Rs 11,367 crore into Jio Platforms. This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR's largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis. Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms. Jio Platforms is a wholly-owned subsidiary of Reliance Industries.

Bajaj Holdings & Investment fell 1.3%. The company's consolidated net profit dropped 54.34% to Rs 361.41 crore on 25.21% fall in total income to Rs 636.57 crore in Q4 March 2020 over Q4 March 2019.

VST Industries gained 3.74% after net profit rose 33.15% to Rs 70.61 crore on 7.2% rise in total income to Rs 303.81 crore in Q4 March 2020 over Q4 March 2019.

Quick Heal Technologies slumped 9.03% after consolidated net profit dropped 71.21% to Rs 7.99 crore on 23.3% fall in total income to Rs 72.50 crore in Q4 March 2020 over Q4 March 2019.

Automotive Axles advanced 4.16%. Automotive Axles said that the company has resumed offices and manufacturing locations at Jamshedpur with effect from 20 May 2020 and at Hosur with effect from 6 May 2020 with all precautionary measures including the safe distancing and criteria's as per the government norms.

Global Markets:

Overseas, Asian stocks are trading lower on Friday as tensions between the US and China rise. Hong Kong's Hang Seng index led losses among the region's major markets as it plunged over 3%. The moves came after reports surfaced Thursday that China is planning national security laws for Hong Kong, after the city was plunged into turmoil by pro-democracy protests last year that periodically degenerated into violence. The laws would reportedly ban secession, foreign interference, terrorism and all seditious activities aimed at toppling the central government and any external interference in the former British colony.

In US, Wall Street ended lower on Thursday, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world's two largest economies.

Stocks traded under pressure for most of the session as President Donald Trump tweeted late Wednesday that China's disinformation and propaganda attack on the United States and Europe is a disgrace, while the White House issued a broad attack on Beijing's economic policies, military buildup, and human rights violations.

Back home, the market ended with decent gains on Thursday, extending its winning run for the third straight session. The barometer S&P BSE Sensex rose 114.29 points or 0.37% at 30,932.90. The Nifty 50 index rose 39.70 points or 0.44% at 9,106.25.

Foreign portfolio investors (FPIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 401.78 crore in the Indian equity market on 21 May, provisional data showed.

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

First Published: Fri, May 22 2020. 09:21 IST