Local stocks opened on a firm note tracking upbeat global cues. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 452.45 points or 1.21% at 37,871.44. The Nifty 50 index was up 113.10 points or 1.03% at 11,135.30. Sentiment was boosted on positive data from trials of potential COVID-19 vaccines.
The S&P BSE Mid-Cap index was up 0.72%. The S&P BSE Small-Cap index was up 0.8%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1169 shares rose and 395 shares fell. A total of 75 shares were unchanged.
Markets regulator Securities and Exchange Board of India (Sebi) on Monday released framework to enable verification of upfront collection of margins from clients in cash and derivatives segments. The new framework will come into effect from December 1, 2020, Sebi said.
Hindustan Unilever, Axis Bank, Bajaj Finance, Bajaj Finserv, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance Company will declare their April to June quarterly results today, 21 June 2020.
Stocks in news:
ACC surged 6.86%. Consolidated net profit dropped 40.5% to Rs 270.95 crore in Q2 June 2020 as against Rs 455.68 in Q2 June 2019. Revenue from operations stood at Rs 2602.24 crore in Q2 June 2020, declining 37% from Rs 4149.82 crore reported in the same period last year. Profit before tax (PBT) declined 40% year-on-year to Rs 403.11 crore in Q2 June 2020 as against Rs 672.63 in Q2 June 2019. Total tax expense tumbled 39% to Rs 132.16 crore in Q2 June 2020 over Q2 June 2019.
The cement major said it had shut-down plants following nationwide lockdown which was announced by the Government of India in view of COVID-19. From 20 April 2020, operations at plants commenced in a phased manner taking into account directives from various government authorities.
NTPC rose 0.4%. NTPC informed that 800 MW, Unit-2 of Lara Super Thermal Power Project, has been added to installed capacity of the company on successful completion of trial operation. With this, the total installed capacity of NTPC and NTPC group has become 51155 MW and 62910 MW respectively.
Wipro advanced 2.97% after the company announced a partnership with ComplianceQuest to develop transformative quality management solutions for the medical devices and life sciences industries.
Jubilant Life Sciences gained 3.89%. Jubilant Life Sciences announced that its subsidiary, Jubilant Generics (Jubilant), has received approval from the Drug Controller General of India (DCGI) to manufacture and market the investigational antiviral drug remdesivir for 100 mg/vial (lyophilized injection) for restricted emergency use in India for the treatment of severe COVID-19.
NHPC rose 1.74%. NHPC said that a Memorandum of Understanding (MoU) has been signed with Green Energy Development Corporation of Odisha (GEDCOL). Both parties may collaborate and cooperate to form a Joint Venture Company (JVC) to plan and develop techno-commercially feasible floating solar power projects of 500 MW in Odisha under UMREPPs Scheme of MNRE, in a phased manner, preferably in packages of 50 MW each. The parties also agreed to explore further potential of installing floating solar projects after joint identification in subsequent periods in Odisha.
Bombay Dyeing & Manufacturing Company fell 1.61% after the company reported consolidated net loss of Rs 129.25 crore in Q1 June 2020, as compared to net profit of Rs 27.65 crore in Q1 June 2019. Total income dropped 85.73% to Rs 96.09 crore.
Overseas, Asian stocks are trading higher on Tuesday after investor sentiment was supported by a slew of positive news on the coronavirus vaccine front.
Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine candidate. Another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial. More than 150 possible vaccines are being developed and tested around the world to try to stop the pandemic. There are 23 candidates in human clinical trials, including from Moderna and AstraZeneca Plc.
In US, major stock indexes closed higher Monday, with the Nasdaq scoring a record close, as investors looked forward to quarterly results from corporations over the coming days. Investors also focused on positive developments from coronavirus vaccine candidates and talks in Washington on fresh stimulus.
In Washington, Senate Majority Leader Mitch McConnell and Treasury Secretary Steven Mnuchin were reportedly set to meet in the White House Tuesday to kick off discussions on a proposed $1 trillion coronavirus package, which is lower than the $3.5 trillion proposed by Senate Democrats.
Meanwhile, European leaders continued negotiations on Monday over an economic recovery fund to help countries combat the effects of the pandemic. As per reports, a proposal submitted to lift the bloc out of a Covid-19-induced recession included 390 billion euros of grants and 360 billion euros of loans.
Back home, key domestic barometers ended near the day's high on Monday, extending gains for the fourth straight session. The Nifty managed to close above the psychological 11,000 mark. The barometer S&P BSE Sensex rose 398.85 points or 1.08% at 37,418.99. The Nifty 50 index gained 120.50 points or 1.11% at 11,022.20. Both these indices jumped about 3.9% in four sessions.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,709.97 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,521.99 crore in the Indian equity market on 20 July, provisional data showed.