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Market nudges higher in early trade

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Key indices are trading higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 56.07 points or 0.15% at 38,549.02. The Nifty 50 index was up 39.60 points or 0.35% at 11,340.15.

The S&P BSE Mid-Cap index was up 0.73%. The S&P BSE Small-Cap index was up 0.59%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 810 shares rose and 412 shares fell. A total of 59 shares were unchanged.

Results to watch:

Bharti Airtel, Maruti Suzuki India, Dr Reddy's Laboratories, TVS Motor Company, InterGlobe Aviation, Colgate-Palmolive (India) and GlaxoSmithKline Pharmaceuticals will announce their April-June their quarterly results today, 29 July 2020.

Meanwhile, 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.

Stocks in news:

IndusInd Bank surged 3.98%. The bank'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. Profit before tax (PBT) dropped 72.11% to Rs 602.45 crore. Tax expense tanked 80.51% to Rs 141.81 crore.

The private lender'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).

Nestle India rose 0.03% after the company 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. Profit before tax declined 1% to Rs 652.27 crore in Q2 June 2020 over Q2 June 2019. Total tax expense declined 25% year on year to Rs 165.67 crore in Q2 June 2020.

Tata Consultancy Services (TCS) rose 1.35%. TCS and Zinier, the leader in intelligent field service automation, announced the launch of a digital solution to help field service organizations quickly adapt to unexpected disruptions to essential workforces and services to ensure business continuity.

Yes Bank rose 2.94%. The bank's net profit tumbled 60.1% to Rs 45 crore in Q1 June 2020 from Rs 114 crore in Q1 June 2019. Total income of the bank fell 32.8% on a year-on-year (YoY) basis to Rs 6,106.74 crore in the June 2020 quarter.

Sanofi India advanced 3.09% after net profit rose 39.94% to Rs 136.30 crore on 3.95% fall in total income to Rs 740.80 crore in Q1 June 2020 over Q1 June 2019.

RBL Bank gained 2.45%. The bank's standalone net profit slumped 47.12% to Rs 141.22 crore on 2.57% rise in total income to Rs 2,568.32 crore in Q1 June 2020 over Q1 June 2019.

Castrol India rose 1.68%. The company's standalone net profit slumped 64.2% to Rs 65.40 crore on 52.08% fall in total income to Rs 505.80 crore in Q2 June 2020 over Q2 June 2019.

Global Markets:

Overseas, Asian stocks are trading lower on Wednesday as investors await the U.S. Federal Reserve's interest rate decision.

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.

A plan unveiled by Senate Republicans would include relief for jobless Americans, another direct payment to individuals of up to $1,200, and more Paycheck Protection Program small business loan funds, among other provisions. It would also set federal unemployment insurance at 70% of a worker's previous wages, replacing the $600 per week which states stopped paying out this week.

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 also began a two-day policy meeting on Tuesday that's unlikely to result in much action, but 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 U.S. 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.

Back home, key benchmarks ended with robust gains on Tuesday amid broad-based buying support. Auto and IT shares were in demand. Strength in index pivotal TCS pushed the barometers higher. The barometer index, the S&P BSE Sensex rallied 558.22 points or 1.47% at 38,492.95. The Nifty 50 index added 168.75 points or 1.52% at 11,300.55.

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.

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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. 09:25 IST
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