You are here: Home » News-CM » Equities » Market Report
Business Standard

Shares turn rangebound; most Asian shares decline

Capital Market 

Equity barometers turned rangebound near the day's high in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 126.02 points or 0.31% at 40,719.82. The Nifty 50 index added 42.05 points or 0.35% at 11,973.

Gains were capped as India's retail inflation in September rose above the RBI's comfort level, while industrial output continued to contract in August, official data showed on Monday. The RBI MPC has given the mandate to maintain annual inflation at 4% until 31 March 2021, with an upper tolerance of 6% and a lower tolerance of 2%.

In the broader market, the S&P BSE Mid-Cap index rose 0.23% while the S&P BSE Small-Cap index added 0.16%.

The market breadth was flat. On the BSE, 1129 shares rose and 1127 shares fell. A total of 142 shares were unchanged.

Economy:

India's industrial output contracted for the sixth straight month in August, due to lower output of manufacturing, mining and power generation sectors. Data released on Index of Industrial Production (IIP) by the Ministry of Statistics & Programme Implementation on Monday showed the index had contracted 8% in August compared with a fall 10.77% in July. The data further showed that, manufacturing sector production had registered a decline of 8.6%, while the output of mining and power segments fell 9.8% and 1.8%, respectively.

India's retail inflation jumped to its highest in eight months in September on the back of rising food prices. The Consumer Price Index-based inflation stood at 7.34% last month compared with 6.69% in August. Inflation in the food and beverages category stood at 9.73% in September against 8.29% in August, led by higher prices of vegetables, pulses, meat and fish.

Meanwhile, the Goods and Services Tax (GST) Council on Monday failed to reach an agreement on the contentious issue of borrowings to meet shortfalls in cess collections used to recompense the States for revenue losses from the indirect tax implementation. Finance Minister Nirmala Sitharaman, however, said the Centre is ready to help the States who have decided to borrow to bridge the cess shortfall. The meeting, chaired by finance minister Nirmala Sitharaman, was a continuation of the 42nd GST Council meet held last week.

Addressing the media after the meeting, Sitharaman said that the Centre cannot borrow and pay states for the shortfall, it is the States that need to borrow since it would lead to rise in bond yields, resulting in rise in borrowing costs for the government and the private sector.

Stocks in news:

Shalby jumped 3.96% to Rs 103.75 after the company's consolidated net profit rose 89.40% to Rs 24.47 crore on 8.04% decline in net sales to Rs 115.62 crore in Q2 September 2020 over Q2 September 2019.

Rane Brake Lining spurted 14.28% to Rs 664 after the company said its board will consider a share buyback on 15 October 2020.

Alembic Pharmaceuticals gained 1.43% to Rs 953.05 after its Associate Company Rhizen Pharmaceuticals SA (Rhizen) entered into an exclusive license agreement with Curon Biopharmaceutical for development and commercialization of Tenalisib, a Dual PI3K Delta and Gamma Inhibitor for Oncology in Greater China.

Under the terms of the agreement, Rhizen will receive an undisclosed upfront cash payment and is eligible to receive additional development and commercial milestone payments with an overall deal value of $149.5 million plus double-digit royalties on annual net sales of Tenalisib.

Global Markets:

Most Asian stocks declined on Tuesday. Hong Kong Exchanges and Clearing announced Tuesday that trading in the securities and derivatives markets, including after-hours futures trading, have been cancelled for the full day due to the typhoon.

The US stock market finished higher for fourth straight session on Monday, as investors bought technology giants and shifted their focus to corporate earnings starting this week. The moves come against the backdrop of the looming U.S. presidential election and stalled talks for another round of coronavirus stimulus.

With less than three weeks to the presidential election, investors are now focusing on the outlook for the Democratic Party controlling both the White House and Congress.

Prospects for another fiscal stimulus package appeared to have simmed, as Democrats over the weekend rejected a $1.9 trillion proposal from Treasury Secretary Steven Mnuchin, representing the Trump administration's most generous aid proposal thus far.

Powered by Capital Market - Live News

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

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 13 2020. 11:26 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU