Benchmarks were trading in a narrow range with modest gains in morning trade. The Nifty slipped below the 11,500 mark. Pharma shares were in demand.
At 10:22 IST, the barometer index, the S&P BSE Sensex, was up 141.59 points or 0.37% at 38,898.31. The Nifty 50 index was up 41.7 points or 0.36% at 11,481.35.
The broader market surged for second trading session after the Sebi on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021. The S&P BSE Mid-Cap index was up 0.79% while the S&P BSE Small-Cap index jumped 1.05%.
The market breadth was positive. On the BSE, 1291 shares rose and 834 shares fell. A total of 132 shares were unchanged.
Total COVID-19 confirmed cases worldwide stood at 29,190,588 with 9,27,245 deaths. India reported 9,90,061 active cases of COVID-19 infection and 80,776 deaths while 38,59,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India's retail inflation which is measured by the Consumer Price Index (CPI) eased to 6.69% in the month of August, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The CPI for the month of July was revised to 6.73% from 6.93%.
The Scheduled commercial banks (SCBs) credit growth was steady on sequential basis to 5.5% YoY to Rs 1,02,11,730 crore as on 28 August 2020, compared with 5.5% growth a fortnight ago. The credit growth has decelerated from 10.2% at end July 2019. Aggregate deposits growth of the scheduled banks increased 10.9% YoY at Rs 1,41,76,765 crore as on 28 August 2020, compared with 11.0% growth a fortnight ago and 9.7% rise a year ago.
RBI Mandates Automated Recognition of NPAs:
The Reserve Bank of India (RBI) on Monday mandated the automation of bad-loan recognition by banks by 30 June 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly. In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements. The system-based asset classification shall be an ongoing exercise for both downgradation and upgradation of accounts.
The Nifty Pharma index was up 2.54% to 11,518.35, rebounding from yesterday's 0.71% decline.
Aurobindo Pharma (up 3.75%), Cipla (up 3.64%), Dr. Reddy's Lab (up 2.63%), Lupin (up 2.57%), Sun Pharmaceutical (up 2.44%), Divi's Lab (up 2.29%) and Torrent Pharmaceutical (up 2.09%) were top gainers in pharmaceutical space.
ARSS Infra (up 2.84%), ITD Cementation (up 8%), Max India (up 2.26%), MTNL (up 0.53%), Power Mech (down 1.19%), Procter & Gamble Health (up 1.6%), Steel Strip Wheel (up 1.88%) Spicejet (up 0.09%), National Fertilisers (down 0.13%), Sterling & Wilson (down 3.76%) and VA Tech Wabag (up 0.99%) are some of the companies that will announce their quarterly results today.
Stocks in Spotlight:
PVR fell 1.06% to Rs 1296 after the multiplex chain reported a consolidated net loss of Rs 225.62 crore in Q1 June 2020 compared with net profit of Rs 17.57 crore in Q1 June 2019. Net sales during the quarter slumped 98.6% year-on-year (YoY) to Rs 12.70 crore. Pre-tax loss stood at Rs 341.92 crore in Q1 FY21 as against a pre-tax profit of Rs 27.96 crore in Q1 FY20. “Results for quarter ended 30th June, 2020 are not comparable with results for quarter ended 30th June, 2019 as the current quarter is impacted by temporary closures of cinemas and suspension of operations,” the company said in a statement.
Mindspace Business Parks REIT was up 0.65%. The REIT's board approved the issuance of non-convertible rupee denominated debentures of upto Rs 500 crore in one or more tranches. Mindspace Business Parks REIT has approved the issuance of listed, rated, principal protected - market linked secured, redeemable, non-convertible rupee denominated debentures of upto Rs 500 crore, in one or more tranches. The board has also granted authority to the Executive Committee of the Manager to decide and approve, from time-to-time, any further borrowings as may be required to be made by Mindspace REIT upto 25% of the value of total assets of Mindspace REIT.
NBCC (India) was down 2.39%. The company reported 87.87% slump in consolidated net profit to Rs 5.93 crore on 62.39% drop in total income to Rs 730.15 crore in Q1 June 2020 over Q1 June 2019. NBCC (India) said the outbreak of COVID - 19 pandemic and consequent lockdown has impacted regular business operations during the quarter ended 30 June 2020 due to limited availability of workforce and disrupted supply chain. The company has restarted its construction related services in a phased manner. The results for the quarter are therefore not comparable with those for the previous quarter, NBCC (India) said.