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Sensex regains 38,000 in early trade

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Key indices are trading on firm note in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 244.64 points or 0.64% at 38,179.37. The Nifty 50 index was up 75.70 points or 0.68% at 11,207.50.

The S&P BSE Mid-Cap index was up 0.49%. 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, 1022 shares rose and 571 shares fell. A total of 58 shares were unchanged.

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.

Stocks in news:

ITC shed 0.05%. ITC said the company has acquired 100% of the equity share capital of Sunrise Foods Private Limited (Sunrise) on 27th July, 2020. Consequently, Sunrise and its two subsidiaries viz., Sunrise Sheetgrah Private Limited and Hobbits International Foods Private Limited, have become wholly owned subsidiaries of the company.

Tech Mahindra jumped 5.12% after consolidated net profit jumped 20.9% to Rs 972 crore on 4% fall in revenue to Rs 9,106 crore in Q1 June 2020 over Q4 March 2020. Sequentially, EBITDA declined 3.5% to Rs 1,301 crore while its EBITDA margin expanded by 10 bps to 14.3% during the first quarter. Profit before tax in Q1 June 2020 stood at Rs 1283.20 crore, up by 32.89% from Rs 965.60 crore in Q4 March 2020.

Bharti Infratel fell 1.82% after consolidated net profit fell 20.68% to Rs 703.60 crore on 4.33% fall in total income to Rs 1,953.90 crore in Q1 June 2020 over Q1 June 2019.

Pfizer rose 0.13% after net profit rose 10.32% to Rs 124.45 crore on 8.3% fall in total income to Rs 532.09 crore in Q1 June 2020 over Q1 June 2019.

United Spirits dropped 2.27% after the company reported consolidated net loss of Rs 241.50 crore in Q1 June 2020 as compared to net profit of Rs 202.10 crore in Q1 June 2019. Total income fell 57.44% to Rs 1,037.10 crore in Q1 June 2020 over Q1 June 2019.

Nippon Life India Asset Management advanced 4% after consolidated net profit rose 24.64% to Rs 156.30 crore on 6.72% fall in total income to Rs 336.18 crore in Q1 June 2020 over Q1 June 2019.

Mahindra & Mahindra Financial Services gained 4.15% to Rs 134.20. The company's rights issue opened today, 28 July 2020. The company will issue 617,764,960 fully paid-up equity shares of face value of Rs. 2 each for cash at a price of Rs. 50 per equity share aggregating to Rs. 3088.82 crore on a rights basis to eligible equity shareholders in the ratio of one equity share for every one fully paid-up equity share held on the record date, that is 23 July 2020.

NBCC (India) rose 2.5%. NBCC (India) received the work orders on PMC basis for construction of Police Headquarter (PHQ) in Seychelles (Cost USD 13.9 Million i.e. approx Rs. 104.19 crore) and construction of Attorney General's (AG) Office Projects in Seychelles (Cost USD 13.38 Million i.e. approx 100.30 crore). The total estimated costs of these projects are USD 27.28 million (Rs 204.49 crore).

Global Markets:

Overseas, Asian stocks were higher in Tuesday as investors continued to monitor developments on the coronavirus front.

In US, major stock indexes finished higher Monday, as investors watched lawmakers haggle over a coronavirus rescue program and braced for the busiest week of earnings season. Gains across the major tech names lifted the broader market as traders braced for the busiest week of the earnings season.

Amazon gained 1.54% after several analysts hiked their 12-month price targets on the e-commerce giants. Apple also rose 2.37% and was among the best-performing Dow stocks. Facebook, Netflix, Alphabet and Microsoft ended the day higher as well.

The Federal Reserve's two-day policy meeting kicks off on Tuesday. Investors generally don't expect the central bank to make any major announcements, but are looking for Chairman Jerome Powell to maintain a dovish tone.

Earnings season continues apace this week, including results from a host of tech heavyweights. Google parent Alphabet Inc., Amazon.com, Apple Inc., and Facebook Inc. are due to report Wednesday and Thursday.

U.S. Senate Majority Leader Mitch McConnell on Monday unveiled the Republican coronavirus relief plan, which would include relief for jobless Americans, among other provisions.

U.S. drugmaker Pfizer and German biotech firm BioNTech said they began their late-stage human trial for a potential coronavirus vaccine on Monday. That announcement by the firms came the same day biotech firm Moderna, also developing a leading vaccine candidate, said it began its late-stage coronavirus vaccine trial.

Back home, key benchmarks ended lower on Monday amid mixed global cues. The barometer index, the S&P BSE Sensex dropped 194.17 points or 0.51% at 37,934.73. The Nifty 50 index fell 62.35 points or 0.56% at 11,131.80.

Foreign portfolio investors (FPIs) sold shares worth Rs 453.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 977.88 crore in the Indian equity market on 27 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: Tue, July 28 2020. 09:31 IST
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