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Nifty reclaims 11,200 mark; breadth turns negative

Capital Market 

Fresh buying momentum in early afternoon trade pushed the key benchmarks to the day's high. Auto, IT and metal shares advanced.

At 12:24 IST, the barometer index, the S&P BSE Sensex, gained 323.52 points or 0.85% at 38,258.71. The Nifty 50 index added 98.8 points or 0.89% at 11,230.60.

In broader market, the S&P BSE Mid-Cap index was up 0.68% while the S&P BSE Small-Cap index was up 0.47%.

The market breadth turned negative. On the BSE, 1172 shares rose and 1202 shares fell. A total of 146 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.73% to 24.3325. The Nifty July 2020 futures were trading at 11,232.85, at a premium of 2.90 points compared with the spot at 11,229.95.

On the monthly index options front, the Nifty option chain for 30 July 2020 expiry showed maximum Call OI of 34.25 lakh contracts at the 11,200 strike price. Maximum Put OI of 46.42 lakh contracts was seen at 11,000 strike price.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 16,426,919 with 653,353 deaths. India reported 4,96,988 active cases of COVID-19 infection and 33,425 deaths while 9,52,743 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Sebi Regulations:

Market regulator Sebi on Monday extended relaxation in procedural requirements for listed entities with respect to open and buyback offers till December 31 amid coronavirus pandemic. The regulator, in May, had granted one-time relaxations from strict enforcement of SAST (Substantial Acquisition of Shares and Takeovers) Regulations and norms for buyback of securities through open and buyback tender offers opening till July 31.

Earnings Impact:

Escorts gained 2.36% to Rs 1133.05 on BSE.

The tractor manufacturer reported a 5.3% rise in standalone net profit to Rs 92.16 crore on a 25.4% drop in net sales to Rs 1061.63 crore in Q1 June 2020 over Q1 June 2019. Standalone EBIDTA for the quarter ended 30 June 2020 was at Rs 119.6 crore, falling 16% from Rs 142.4 crore in quarter ending June 2019. Escorts said that due to unprecedented COVID-19 pandemic situation during this period, the financials for the quarter ended June 2020 do not represent normal operations and to that extent are not strictly comparable with any normal quarter.

United Spirits fell 2.45% to Rs 576.40 after the company reported a net loss of Rs 215 crore in Q1 June 2020 as against a net profit of Rs 197 crore in the same period last year. Net sales during the quarter tumbled 54% YoY to Rs 1030 crore. The alcoholic beverages manufacturer's total sales volume declined 49% to 9.8 EUm (Equivalent Units in millions) in Q1 FY21 from 19.3 EUm reported in Q1 FY20. On the segmental front, prestige & above segment witnessed 52% fall in volumes as it stood at 5 EUm while the popular segment's volumes contracted by 47% to 4.8 EUm in Q1 FY21 over Q1 FY20.

Bharat Electronics fell 1.36% to Rs 97.95 after consolidated net profit slumped 74.44% to Rs 53.84 crore on 21.13% drop in total revenue from operations to Rs 1,675.59 crore in Q1 June 2020 over Q1 June 2019. The order book position of the company as on 1 July 2020 stood at Rs 53,752 crore. The company said the result was impacted due to the nation wide lockdown attributable to COVID-19 related developments. However, the company expects to recover the carrying amount of inventories, property, plant & equipment, leases, financial instruments, trade receivables etc. The company said that it will continue to monitor the future economic conditions and assess its impact on its financial results.

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

First Published: Tue, July 28 2020. 12:21 IST
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