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Nifty hits day's high above 12,000

·4-min read

Key indices are trading strong in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 291.50 points or 0.72% at 40,800.99. The Nifty 50 index was up 80.65 points or 0.68% at 11,994.85. The Nifty hit day's high above the psychological 12,000 mark.

The S&P BSE Mid-Cap index was up 0.38%. The S&P BSE Small-Cap index was up 0.45%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1041 shares rose and 635 shares fell. A total of 103 shares were unchanged.

Economic data:

On the macro front, the industrial production data for August and CPI inflation for September will be released today, 12 October 2020.

Stocks in news:

Vedanta lost 9.99%. Vedanta said that in connection with the delisting offer, Vedanta Resources and its indirect subsidiaries namely, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II, that the delisting offer is deemed to have failed in terms of Regulation 19(1) of the delisting regulations.

Glenmark Pharmaceuticals rose 0.32%. Glenmark Pharmaceuticals announced results of its “FAITH” combination trial with antivirals Umifenovir and Favipiravir for the treatment of moderate hospitalized COVID-19 patients. This was the second clinical study after the successful Favipiravir monotherapy trial earlier this year that led the company to receiving the Emergency Use Authorisation for Favipiravir. This second study titled the FAITH trial evaluated the possible superiority of the combination's efficacy against Favipiravir monotherapy. As per the results that Glenmark presented to the regulator, the study showed no superior clinical outcomes with the addition of Umifenovir.

RITES rose 1.35%. RITES announced that it has secured consultancy orders worth Rs 103 crore from various clients.

Federal-Mogul Goetze (India) lost 5% to Rs 412. Federal-Mogul Goetze (India) said that promoter entity IEH FMGI Holdings LLC proposes to sell up to 1,21,45,391 equity shares (representing 21.83% of the paid-up equity) through offer for sale on October 12-13. The floor price has been fixed at Rs 342 per share.

Karnataka Bank rose 1.91%. Karnataka Bank on Friday (9 October) declared its exposure of Rs 107.99 crore to Sintex Industries (SIL) as fraud. In 2016, SIL had availed various credit facilities under consortium arrangement wherein, Karnataka Bank was one of the fifteen member banks. Karnataka Bank's total exposure in the arrangement stood at around 1.74%.

Indiabulls Housing Finance rose 2.42%. Indiabulls Housing Finance has further sold a portion of its stake in OakNorth Holding (the wholly owning parent company of OakNorth Bank) (OakNorth), to Riva Capital Partners V, L.P., USA, for approximately Rs 441 crore. The sale proceeds will be accretive to the regulatory net worth and the CRAR of the company.

Premier Explosives rose 4.96%. Premier Explosives on Friday (9 October) said it received a Rs 82.83 crore order from state-run Singareni Collieries Company in Telangana for supplying SMS/SME explosives and accessories.

Global Markets:

Overseas, Asian stocks were mostly trading higher on Monday, as investors clung to hopes for U.S. stimulus spending.

In US, stocks logged gains on Friday as President Donald Trump signaled support for a bigger coronavirus aid package. The Dow Jones Industrial Average closed 161.39 points higher, or 0.6%, at 28,586.90. The S&P 500 gained climbed 0.9% to 3,477.13. The Nasdaq Composite advanced 1.4% to close at 11,579.94.

Investors remained optimistic about another fiscal stimulus package being passed by Congress eventually, encouraged by continued talks between House Democrats and the Trump administration. United States President Donald Trump tweeted: “Covid Relief Negotiations are moving along. Go Big!” Reports indicated that the White House is preparing a $1.8 trillion stimulus proposal.

The Federal Reserve and U.S. lawmakers have spent trillions of dollars on various measures to keep the economy afloat during the pandemic. Earlier this year, the Fed launched an open-ended bond-buying program and Trump signed a $2.2 trillion package that included enhanced unemployment benefits and direct payments to Americans.

Meanwhile, the second presidential debate between President Donald Trump and Democrat Joe Biden is officially off. The decision was made a day after the commission announced the debate would take place “virtually” because Trump had contracted the coronavirus. The third debate, scheduled for October 22 in Nashville, Tennessee, is still on.

Back home, domestic benchmark indices ended with modest gains on Friday, rising for the seventh consecutive session. The sentiment got a boost after the Reserve bank of India left its key policy rates unchanged while retaining its accommodative stance. It also announced a slew of measures to ensure adequate liquidity in the banking system. The S&P BSE Sensex, added 326.82 points or 0.81% at 40,509.49. The Nifty 50 index jumped 79.60 points or 0.67% at 11,914.20.

Foreign portfolio investors (FPIs) sold shares worth Rs 39.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 126.61 crore in the Indian equity market on 9 October, provisional data showed.