The domestic equity benchmarks surged on Friday amid value buying after a recent selloff. The Nifty managed to regain the 11,000 mark as banks and IT shares bounced.
The barometer index, the S&P BSE Sensex, jumped 835.06 points or 2.28% at 37,388.66. The Nifty 50 index surged 244.70 points or 2.26% at 11,050.25. The 50-unit index tumbled 6.89% in the previous six sessions.
In the broader market, the S&P BSE Mid-Cap index rose 2.90% while the S&P BSE Small-Cap index gained 2.31%.
Buyers outpaced sellers. On the BSE, 1988 shares rose and 660 shares fell. A total of 170 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 3,22,34,685 with 9,83,042 deaths. India reported 9,70,116 active cases of COVID-19 infection and 92,290 deaths while 47,56,164 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The Central Government has suspended the operation of the Insolvency and Bankruptcy Code (IBC) by another three months. In exercise of the powers conferred by section 10A of the Insolvency and Bankruptcy Code, 2016, the Government has extended the suspension of sections 7, 9 and 10 of the IBC for a further period of three months, the Finance Ministry stated. Extension of suspension of sections 7,9,10 of the IBC reinforces the Government's commitment to protecting businesses. It also gives companies breathing time to recover from financial stress, according to the Finance Ministry.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 73.6125 compared with its previous closing 73.8975.
The yield on 10-year benchmark federal paper fell to 6.040% compared with previous closing of 5.992% in the previous trading session.
MCX Gold futures for 5 October 2020 settlement fell 0.62% to Rs 49,595.
In the commodities market, Brent crude for November 2020 settlement slipped 4 cents to $41.90 a barrel. The contract gained 0.40% or 17 cents to settle at $41.94 in the previous trading sessions on Tuesday.
Global Markets:
The US Dow Jones Futures were down 205 points, indicating a negative start on the Wall Street today.
European stocks declined while Asian stocks ended mixed on Friday. Rising coronavirus cases continue to weigh on investor sentiment as the number of reports surge in Europe. The number of daily reported coronavirus cases in the U.K. has jumped by a quarter in the past day.
U.K. Finance Minister Rishi Sunak on Thursday announced a new emergency package of measures to contain unemployment, replacing the country's furlough scheme which is due to expire next month.
U.S. stocks ended positive in choppy trade on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher-than-expected unemployment claims.
Investors remained uncertain about Washington's ability to pass a stimulus package after Fed officials indicated they expected more fiscal support. Consequently, the fears of a delayed global economic recovery from the novel coronavirus pandemic resurfaced.
Jobless claims in the US rose 4,000 to 870,000 (from 866,000 last week), the Labor Department said Thursday, reflecting that slightly more Americans applied for state unemployment benefits in the week ended Sept. 19 than in the prior week.
Sales in US of new single-family homes in August exceeded an annual rate of 1 million for the first time since 2006. New home sales occurred at a seasonally adjusted, annual rate of 1.011 million (vs 0.965 million in July and up 43% YoY)
As per reports, US lawmakers, which include Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi are looking to iron out differences on a fresh round of stimulus to boost the economy. The Democrats could announce a $2.4 trillion stimulus package as early as next week.
Buzzing Indian Segments:
The Nifty Bank index rose 2.57% to 20,982.35. It slumped 3.41% in the previous session.
IDFC First Bank (up 8.52%), IndusInd Bank (up 4.97%), RBL Bank (up 4.63%), Bank of Baroda (up 4.52%), Federal Bank (up 4.37%), Bandhan Bank (up 4.08%), ICICI Bank (up 3.78%), Punjab National Bank (up 3.57%), State Bank of India (up 3.26%), Axis Bank (up 3.12%), HDFC Bank (up 1.37%) and Kotak Mahindra Bank (up 0.28%) climbed.
The Nifty IT index jumped 3.46% to 19,629.35. The index tanked 4.50% in the past two sessions.
Happiest Minds Technologies (up 7.78%), HCL Technologies (up 5.01%), Persistent Systems (up 4.06%), TCS (up 3.89%), Infosys (up 3.66%), Wipro (up 3.05%) and Tech Mahindra (up 3.01%) soared.
Stocks in News:
Vodafone Idea surged 13.60% to Rs 10.36 on reports UK telecom major Vodafone Group Plc on Friday won an international arbitration against the Indian government over retrospective tax demand of roughly Rs 20,000 crore.
Cipla surged 5.10%. The drug major announced that it has received final approval for its abbreviated new drug application (ANDA) for Dimethyl Fumarate DR capsules 120mg, 240mg and 120mg/240 mg starter pak from the United States Food and Drug Administration (US FDA). The drug is indicated for the treatment of relapsing forms of multiple sclerosis (MS), to include clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease, in adults.
Mahindra & Mahindra (M&M) added 3.01%. M&M after market hours on Thursday announced that it converted 480 compulsorily convertible preference shares of Sampo Rosenlew Oy, Finland, into 1,440 equity shares and exercised a call option to acquire 633 equity shares from the owners of Sampo. Accordingly, the voting rights of the company in Sampo would increased from 49.14% to upto 74.97%, and Sampo would become a subsidiary of M&M.
GMR Infrastructure surged 11.08%. The company announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding (GSPHL) of its entire 51% stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure (ARIPL). As part of the proposed transfer of stake of KSEZ, the 100% equity stake of Kakinada Gateway Port (KGPL) held by KSEZ would also be transferred to Aurobindo Realty. Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2610 crore.
Cadila Healthcare rose 2.54%. Zydus Cadila has received final approval from the US Food and Drug Administration (USFDA) to market Dimethyl Fumarate delayed-release capsules, (US RLD: Tecfidera) in the strengths of 120 mg and 240 mg. The USFDA granted approval following entry of judgment in favor of Zydus Cadila and other ANDA applicants by the United States District Court for the District of Delaware, holding that the only unexpired patent covering Tecfidera is invalid. Dimethyl Fumarate delayed-release capsules are indicated for the treatment of patients with relapsing forms of multiple sclerosis and will be manufactured at the group's manufacturing facility at the SEZ, Matoda.
HUDCO gained 5.23% after the company said it has achieved loan sanctions of Rs 2607.12 crore and loan releases of Rs 3277.04 crore, as on 31 August 2020, for the financial year 2020-21.
Granules India jumped 4.20% after the company said it received US drug regulator's approval of Naproxen Sodium and Diphenhydramine Hydrochloride tablets, 220 mg/25 mg (OTC). The drug is generic equivalent of Aleve PM tablets of Bayer HealthCare LLC. It is used for relief of occasional sleeplessness associated with minor aches and pains and to help you fall asleep and stay asleep.
According to media reports, global private equity firms Blackstone, KKR and Bain Capital have expressed interest in acquiring a controlling stake in Granules India. Offering a clarification on the same, Granules said: “we do not confirm or deny the information contained in the news article.”
Vakrangee hit an upper circuit of 10% at Rs 27.10 after the Reserve Bank of India (RBI) granted the company in-principle authorisation to set-up and operate Bharat Bill Payment Operating Unit (BBPOU). The company said it can now directly handle payment and aggregation of payment services relating to bills under the scope of the Bharat Bill Payment System (BBPS).
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