India markets closed

Market trades firm; metal shares in demand

The equity barometers were trading firm in mid-morning trade amid bouts of volatility. Positive global cues boosted sentiment. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 159.28 points or 0.46% at 35,120.80. The Nifty 50 index added 46.80 points or 0.45% at 10,359.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.57% while the S&P BSE Small-Cap index was up 0.08%.

The market breadth was positive. On the BSE, 1345 shares rose and 1070 shares fell. A total of 132 shares were unchanged.

Coronavirus Update:

India reported 2,15,125 active cases of COVID-19 infection and 16,893 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 10,302,052 so far with 505,505 deaths, according to data from Johns Hopkins University.

PM's Address to the nation:

Prime Minister Narendra Modi will address the nation at 16:00 IST today, 30 June 2020. This would be the prime minister's sixth address to the nation since the outbreak of the pandemic.

Unlock 2 guidelines:

The Union government on Monday night issued guidelines for the month-long 'Unlock 2' -- the phased re-opening of activities that were barred to contain the coronavirus spread in the country. Under the new guidelines, social/ political/ sports/ entertainment/ academic/ cultural/ religious functions and other large congregations remain prohibited. Metro Rail services shall remain shut and cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars, auditoriums, assembly halls and similar places will also not be allowed to open. All activities apart from those prohibited will be allowed outside containment zones.

Lockdown will remain in force in COVID-19 containment zones till July 31 and district authorities to demarcate zones, according to the guidelines. Night curfew will remain in force between 10 pm and 5 am throughout country, except for essential activities. Unlock 1 ends on June 30 and Unlock 2 will be in force from 1 to 31 July.

Buzzing Index:

The Nifty Metal index rose 1.68% to 2,022.95 after China's manufacturing activity expanded in June. China is the World's largest producer and consumer of industrial metals.

Steel Authority (up 5.41%), Jindal Steel & Power (up 3.63%), NMDC (up 2.35%), Hindalco Industries (up 2.47%), Hindustan Zinc (up 2.01%), Hindustan Copper (up 1.87%), APL Apollo Tubes (up 1.64%), Ratnamani Metals Tubes (up 1.46%), Welspun Corp (up 0.93%), National Aluminum Co. (up 1.10%), Coal India (up 0.19%) and JSW Steel (up 0.05%) advanced. Meanwhile, MOIL (down 1.43%) and Vedanta (down 0.69%) declined.

Tata Steel rose 2.71%. The steel major reported a consolidated net loss (from continuing operations) of Rs 1,236 crore in Q4 March 2020 as against net profit of Rs 2,353 crore in Q4 March 2019. Turnover declined 20.40% to Rs 33,770 crore in Q4 FY20 from Rs 42,424 crore in the same period last year. The result was announced after market hours yesterday, 29 June 2020.

The company reported an exceptional loss of Rs 3,406 crore in Q4 FY20 on the back of impairment of non-current assets and loss on preference share investments. Profit before exceptional items stood at Rs 1906.40 crore in Q4 FY20, declining 55% from Rs 4241.01 crore in Q4 FY19. Tata Steel received a tax rebate of Rs 263.28 crore in Q4 FY20 as against total tax expense of Rs 1,899.06 crore in Q4 FY19.

Earnings impact:

Raymond declined 2.05% to Rs 281.25 after the company reported consolidated net loss of Rs 69.10 crore in Q4 March 2020 compared with net profit of Rs 67.70 crore in Q4 March 2019. Consolidated net sales dropped 29.31% to Rs 1,278.65 crore in Q4 FY20 over Rs 1,808.71 crore in Q4 FY19.

Topline and profitability was impacted due to Covid-19 and channel stock correction in branded apparel segment. The primary sale of March was impacted especially for the wedding season of April to June 2020. The sales for the good wedding season was completely wiped off. Overall topline impact was Rs 414 crore and EBITDA impact was Rs 134 crore. In Q1 FY21, the company has raised Rs 145 crore through NCDs at market benchmarked rates.

Global Markets:

Asian shares rose across the board on Tuesday buoyed by overnight gains on Wall Street and better than expected data from China.

China's factory activity expanded at a faster pace in June as the economy continued to recover after the government lifted strict lockdowns and ramped up investment. The official manufacturing Purchasing Manager's Index (PMI) rose to a three-month high of 50.9 in June from 50.6 in May, above the 50-point mark that separates growth from contraction on a monthly basis.

Meanwhile, Japan's industrial production in May dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country's Ministry of Economy, Trade and Industry.

Developments surrounding the coronavirus pandemic will also continue to be watched, with World Health Organization chief Tedros Adhanom Ghebreyesu reportedly warning Monday that "the worst is yet to come."

The US stock market finished session sharp higher on Monday, 29 June 2020, as investors chased for bargain hunting after a steep selloff last Friday, thanks to better-than-estimated economic data which helped to overshadow concern over an increase in coronavirus cases

The Pending Home Sales Index, an advance look at home sales based on signed purchase and sale agreements, fell 5.1 percent in May compared to the same month last year, according to data from the National Association of Realtors (NAR). When compared to April of 2020, the news was much better. Pending sales increased by 44.3 percent last month after two consecutive months of decline, NAR reported.

In virus news, many U.S. states are reportedly returning to previous restrictions following a surge in new coronavirus cases in the country last week. As many as 36 states have reported large number of new cases in the past week. A report from Johns Hopkins University said the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.