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Benchmarks hit fresh intraday high; private banks in demand

·2-min read

The market barometers surged to hit fresh intraday high in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was up 598.57 points or 1.66% at 36,631.63. The Nifty 50 index added 166.80 points or 1.57% at 10,774.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.98% while the S&P BSE Small-Cap index gained 0.97%.

The market breadth was strong. On the BSE, 1343 shares rose and 682 shares fell. A total of 103 shares were unchanged.

Earnings today:

Infosys (up 5.47%), L&T Infotech (up 2.15%), Bandhan Bank (up 3.58%), Federal Bank (up 2.25%) and GTPL Hathway (up 3.53%) will announce its first quarter earnings today.

Buzzing Index:

The Nifty Private Bank index rose 2.39% to 12,020.40, amid bargain hunting. The index had lost 6.87% in the past three sessions.

Axis Bank (up 5.03%), RBL Bank (up 3.15%), IndusInd Bank (up 3.13%), ICICI Bank (up 2.85%), City Union Bank (up 1.72%), IDFC First Bank (up 1.54%), HDFC Bank (up 0.92%) and Kotak Mahindra Bank (up 0.60%) advanced.

Stocks in Spotlight:

Reliance Industries (RIL) gained 1.4% to Rs 1,943.55 ahead of its 43rd Annual General Meeting (AGM) at 2 pm today. This will be RIL's first virtual AGM amid COVID-19 crisis.

National Peroxide fell 4.33% to Rs 2010.60 after the company's consolidated net profit slumped 82.6% to Rs 3.04 crore on a 31.1% decline in net sales to Rs 47.50 crore in Q4 FY20 over Q4 FY19.

HEG rose 1.88% to Rs 760, amid value buying. The stock has fallen 12.80% in the past seven sessions.

India Ratings and Research (Ind-Ra) has downgraded HEG's long-term issuer rating to 'INDAA-' from 'INDAA' while maintaining ‘stable'outlook. The ratings said that the downgrade reflects a significant fall in the price of graphite electrode (GE) over 2HFY20 resulting in a sharp compression in the spreads between GE prices and its raw material needle coke (NC) prices, coupled with a significant inventory valuation hit, which resulted in a significantly lower-than-Ind-Ra-expected EBITDA.

The stable outlook reflects the favourable industry structure, healthy on balance sheet liquidity, and the low production cost advantages enjoyed by HEG on account of its single-location plant, labour cost advantages and moderate electricity tariffs, it added.