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Shares pare gains; Nifty below 9100

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The market pared gains in mid-afternoon trade as selling emerged at higher levels. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 102.69 points or 0.33% at 30,921.30. The Nifty 50 index rose 24.1 points or 0.27% at 9,090.65. The volatility was high due to expiry of weekly index options on NSE.

Investors risk appetite improved after the government announced resumption of domestic airline operations from 25 May, almost two month after the operations were suspended on 25 March.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index added 0.53% while the S&P BSE Small-Cap index gained 1.02%.

The market breadth was strong. On the BSE, 1337 shares rose and 806 shares fell. A total of 145 shares were unchanged. In the Nifty 50 index, 26 shares advanced while 24 stocks declined.

The sentiment, however, was cautious after ratings agency ICRA said that modest fiscal support, extension of lockdown, looming labour supply mismatches suggest deeper GDP contraction of 5% in FY2021.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,466.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,373.19 crore in the Indian equity market on 20 May, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 49,96,634 far with 3,28,120 deaths. India reported 63,624 active cases of COVID-19 infection and 3,435 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Metal index jumped 2.5% to 1,754.40, rising for third consecutive trading session. The index has gained nearly 5% in three trading days from its previous closing low of 1673.5 on 18 May 2020.

Hindalco Industries (up 7.03%), NMDC (up 6.04%), Jindal Steel & Power (up 4%), Vedanta (up 3.22%), Steel Authority of India (up 2.54%), Coal India (up 1.66%), National Aluminium Company (up 1.25%), JSW Steel (up 0.76%) and Tata Steel Ltd (up 0.32%) were top gainers metal segment.

Stocks in Spotlight:

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) were locked in an upper circuit of 5% at Rs 1,400.7 on BSE as bookings for passenger trains started. The Indian Railways also released the list of 200 trains that will start operating from June 1 and bookings that can be done on website from 10 am of 21 May 2020.

Shares of aviation companies soared after the government announced resumption of flight operations from 25 May 2020.

InterGlobe Aviation jumped 7.48% while SpiceJet hit an upper circuit of 5% at Rs 42.95 after Hardeep Singh Puri, Minister of Civil Aviation tweeted, Domestic civil aviation operation will recommence in a calibrated manner from 25 May 2020. All airports & air carriers are being informed to be ready for operations from 25 May. standard operating procedures (SOPs) for passenger movement are also being separately issued by Ministry of Civil Aviation.

Kalpataru Power Transmission shed 0.75% to Rs 190.85. The company said that its board approved a proposal to buyback shares worth up to Rs 200 crore at a price not exceeding Rs 275 per share. At the maximum buyback price and for the maximum buyback size, the indicative maximum number of equity shares to be bought back would be about 72,72,727 equity shares, which is about 4.70% of the total number of paid-up equity shares of the company. Furthermore, the board also approved capital raising through issuance of secured/unsecured non-convertible debentures (NCDs) upto Rs 300 crore in one or more tranches.

Cipla shed 0.66%. The drug maker announced the receipt of final approval for its abbreviated new drug application for Dihydroergotamine Mesylate Nasal Spray from the United States Food and Drug Administration (U. S. FDA) with a competitive generic therapy (CGT) designation. Cipla is the first approved applicant for such CGT and, is therefore, eligible for 180 days of CGT exclusivity which will begin to run from the commercial marketing of Cipla's product. The nasal spray is indicated for the treatment of migraine headaches and is a generic therapeutic equivalent version of Bausch Health's 'Migranal' spray.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.033% compared with previous closing of 6.041% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.615 compared with its previous closing of 75.800.

In the commodities market, Brent crude for July 2020 settlement was up 27 cents to $36.02 a barrel. The contract surged 3.1% to settle at $35.75 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 1.05% to Rs 46,636.

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

First Published: Thu, May 21 2020. 14:26 IST