Key equity indices sharply pared losses and traded near the flat line in early afternoon trade. At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 3.24 or 0.01% at 36,484.16. The Nifty 50 index was slipped 9.45 points or 0.09% at 10,754.55.
In the broader market, the S&P BSE Mid-Cap index was up 0.07% while the S&P BSE Small-Cap index was up 0.27%.
The market breadth was negative. On the BSE, 1116 shares rose and 1377 shares fell. A total of 134 shares were unchanged. In Nifty 50 index the breadth was negative with 19 stocks advancing and 31 stocks declining.
Foreign portfolio investors (FPIs) bought shares worth Rs 348.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 263.47 crore in the Indian equity market on 6 July, provisional data showed.
India reported 2,59,557 active cases of COVID-19 infection and 20,160 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,622,741 with 538,079 deaths so far, according to data from Johns Hopkins University.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, was down 0.13% to 25.1625. The Nifty July 2020 futures were trading at 10,684, at a discount of 30.7 points compared with the spot at 10,714.7.
On the weekly index options front, the Nifty option chain for 9 July 2020 expiry showed maximum Call Open Interest (OI) of 44.70 lakh contracts at the 11,000 strike price. Maximum Put OI of 39.71 lakh contracts was seen at 10,000 strike price.
On the monthly index options front, the Nifty option chain for 30 July 2020 expiry showed maximum Call OI of 24.65 lakh contracts at the 11,000 strike price. Maximum Put OI of 31.04 lakh contracts was seen at 10,000 strike price.
Stocks in Spotlight:
Punjab National Bank (PNB) said that its board will meet on Thursday (9 July 2020) to consider a proposal to raise capital through a mix of both equity and debt. The board will consider proposal for raising capital through issue of Basel-III-compliant tier-1 bonds, tier-2 bonds and equity shares by way of private placement, qualified institutions placement, follow-on public offering, rights issue or any other mode or through a combination, it said. Following the board approval, the resolution will be put for the shareholders' nod, the bank added.
SH Kelkar and Company jumped 6.32% to Rs 70.70 after the company said it further reduced its net debt to between Rs 254 to 258 crore as on 30 June 2020 from Rs 299 crore as on 31 March 2020. The company in its business update on Monday (6 July) said the nationwide lockdown significantly affected production and sales in the domestic market during April and May. The firm witnessed encouraging demand pick-up from the last week of May 2020 continuing into June 2020. The revenues in Q1 FY21 stood between Rs 190 to 192 crore (provisional and unaudited figure). The management continues to very closely monitor the operating environment and actively engage with its customers to build demand. From June 2020 onwards, the company said it has been witnessing initial signs of recovery in the FMCG industry and a gradual normalization of the supply chain system. Accordingly, the firm is taking all necessary steps to ensure optimal production levels are maintained throughout the year.
Gujarat Pipavav Port surged 8.03% to Rs 85.45 after JP Morgan Funds purchased 0.63% stake in the company worth Rs 23.62 crore via block deal on Monday. On Monday (6 July), JP Morgan Funds purchased 30.34 lakh equity shares, or 0.63% stake, of Gujarat Pipavav Port at an average price of Rs 77.85 per share via block deal on the BSE. JP Morgan Funds acquired the shares from Flagship Indian Investment Company (Mauritius).