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Market nudges higher in early trade

·4-min read

Key indices regained positive zone after a lower start amid volatility. At 9:26 IST, the barometer index, the S&P BSE Sensex, was up 55.56 points or 0.15% at 37,791.63. The Nifty 50 index was up 18.75 points or 0.17% at 11,120.90.

The S&P BSE Mid-Cap index was up 0.23%. The S&P BSE Small-Cap index was up 0.54%.

The market breadth, indicating the overall health of the market, is negative. On the BSE, 569 shares rose and 763 shares fell. A total of 54 shares were unchanged.

Results to watch:

State Bank of India, Tata Motors, Sun Pharmaceutical Industries and Indian Oil Corporation will announce their April-June their quarterly results today, 31 July 2020.

Stocks in news:

Reliance Industries (RIL) fell 0.66%. RIL reported a 31% jump in consolidated net profit to Rs 13,248 crore in Q1 June 2020 compared with Rs 10,141 crore in the corresponding period of last year. Consolidated total income for the quarter stood at Rs 95,626 crore, down 42.11% compared with Rs 165,199 crore year-on-year.

The decline in revenue was primarily due to fall in O2C revenues, led by sharp decline of 57.6% in average Brent crude price. Retail business also witnessed 17% decline in revenues due to lockdown and restrictions in store operations. Overall decline in revenue was partially offset by increase in revenue of Digital services business with strong subscriber addition and significant improvement in ARPU.

Wipro rose 1.25% after the company announced that Metro Bank, a large UK based retail and commercial bank, has awarded a multi-year contract to deliver and transform Testing and Environment Management Services.

Indian Overseas Bank fell 1.34%. The bank's board approved raising up to Rs 500 crore through equity and Rs 1,500 crore in Tier II capital.

Rain Industries dropped 3.19% after the company reported 78.88% fall in consolidated net profit to Rs 26.54 crore on 29.19% fall in total income to Rs 2,387.39 crore in Q2 June 2020 over Q2 June 2019.

Linde India declined 1%. The company reported 1.74% fall in consolidated net profit to Rs 19.81 crore on 49.8% fall in total income to Rs 251.35 crore in Q2 June 2020 over Q2 June 2019.

Essel Propack surged 11.36% after the company reported 13.28% rise in consolidated net profit to Rs 44.45 crore on 15.33% rise in total income to Rs 746.64 crore in Q1 June 2020 over Q1 June 2019.

Global Markets:

Overseas, Asian stocks were mixed on Friday following a record contraction in U.S. gross domestic in the second quarter. Markets in Singapore, Malaysia and Indonesia are closed for a holiday on Friday.

China's official manufacturing Purchasing Managers' Index for July came in above expectations on Friday. The manufacturing PMI for July was at 51.1 from June's 50.9, according to the country's National Bureau of Statistics.

Japan's industrial output snapped four months of decline in June. Official data released on Friday showed factory output increased 2.7% in June from the previous month when it hit its lowest level since March 2009 during the financial crisis.

US stock futures rose after some of the biggest tech stocks — Facebook, Amazon, Alphabet and Apple — reported quarterly results that beat high expectations. Apple also announced a 4-for-1 stock split.

The S&P 500 and Dow closed lower on Thursday after data painted a worrying economic picture on a crucial day for corporate earnings reports. The Nasdaq eked out a positive finish as investors braced for a litany of quarterly results from behemoths of the technology and e-commerce world.

President Donald Trump raised the idea of a delay in elections. The idea was immediately rejected by both Democrats and his fellow Republicans in Congress, the branch of government with the power to make that change.

Investors also worried about the expiration of enhanced employment benefits on Friday as U.S. Congress was no closer to a deal on Thursday to extend or replace the extra $600-per-week in payments to tens of millions thrown out of work by the coronavirus.

In economic data, a first reading on U.S. gross domestic product data for the second quarter confirmed the pandemic pummeled the economy. U.S. GDP collapsed at a 32.9% annualized rate during the second quarter, following a 5% slump in the first quarter.

Back home, key domestic barometers tumbled on Thursday, dragged by selling in private lenders. Negative global cues spoiled investors sentiment. Trading was volatile as the July 2020 F&O contracts expired on 30 July 2020. The barometer index, the S&P BSE Sensex dropped 335.06 points or 0.88% at 37,736.07. The Nifty 50 index lost 100.70 points or 0.90% at 11,102.15.

Foreign portfolio investors (FPIs) bought shares worth Rs 207.30 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 387.24 crore in the Indian equity market on 30 July, provisional data showed.