Key equity indices ended with small gains after a volatile trading session. Firmness in FMCG shares outpaced selling in metal shares. Global cues were mixed as a chaotic first US presidential debate dented sentiment.

The barometer index, the S&P BSE Sensex, climbed 94.71 points or 0.25% at 38,067.93. The index fell 145.11 points at the day's low of 37,828.11 in morning trade. It jumped 263.12 points at the day's high of 38,236.34 in mid-afternoon trade.

The Nifty 50 index rose 25.15 points or 0.22% at 11,247.55. The index declined 37.85 points at the day's low of 11,184.55 in morning trade. It advanced 73 points at the day's high of 11,295.40 in mid-afternoon trade.

HDFC Bank (up 1.57%) and HDFC (up 1.52%) supported the indices while Reliance Industries (down 0.49%) and Bharti Airtel (down 3.34%) dragged.

In the broader market, the BSE Mid-Cap index rose 0.05% and the BSE Small-Cap index gained 0.04%.

The market breadth was negative. On the BSE, 1242 shares rose and 1368 shares fell. A total of 161 shares were unchanged.

COVID-19 Update:

India reported 9,40,441 active cases of COVID-19 infection and 97,497 deaths while 51,87,825 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Total COVID-19 confirmed cases worldwide stood at 33,560,877 with 1,006,564 deaths.

Economy:

The Reserve Bank of India (RBI) announced India's balance of payments (BoP) figures for the first quarter of FY21 (April – June). India's current account balance (CAB) recorded a surplus of US$ 19.8 billion (3.9% of GDP) in Q1 June 2020 on top of a surplus of $0.6 billion (0.1% of GDP) in the preceding quarter. India recorded a deficit of $15 billion (2.1% of GDP) in the corresponding period last year. The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to $10 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.017% as compared with 6.037% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.76, compared with its close of 73.86 during the previous trading session.

In the commodities market, Brent crude for November 2020 settlement fell 53 cents at $40.50 a barrel. The contract fell $1.40, or 3.30% to settle at $41.03 a barrel in the previous trading session.

Foreign Markets:

The Dow Jones Futures 30 were trading 189 points lower, indicating a weak start in US markets today.

European markets declined while Asian markets ended on a mixed note on Wednesday as investors reacted to the release of China's manufacturing activity data for September and US presidential debate.

China's official manufacturing Purchasing Managers' Index (PMI) for September came in at 51.5 on Wednesday as compared to 51 in August, according to the country's National Bureau of Statistics. Meanwhile, a private manufacturing survey also showed manufacturing activity expanding in September, with the Caixin/Markit PMI coming in at 53 from 53.1 in August.

With respect to developments on the COVID-19 front, the US-based Regeneron Pharmaceuticals on Tuesday reportedly said its experimental two-antibody cocktail reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

In US, Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table hours before the first U.S. presidential debate.

US President Donald Trump and Joe Biden, the Democratic nominee, wrapped up their first presidential debate on Tuesday night with heated exchanges. Two more debates between the presidential candidates are scheduled to take place on 15 October and 22 October 2020. The US Presidential election is scheduled on Tuesday, 3 November 2020.

U.S. House of Representatives Speaker Nancy Pelosi reportedly unveiled a new, $2.2 trillion coronavirus relief bill proposed by House Democrats, a sign of potential progress in the partisan tug-of-war over the new aid package nearly two months after emergency unemployment benefits expired for millions.

Buzzing Segments:

The Nifty FMCG index rose 1.34% to 29,829.70. The index fell 1.51% in the previous session.

Godrej Consumer Products (up 2.86%), Dabur India (up 2.77%), Marico (up 1.95%), Nestle India (up 1.92%), Britannia Industries (up 1.72%), Hindustan Unilever (up 1.68%) and Colgate Palmolive (India) (up 1.07%) advanced.

The Nifty Metal index fell 2.12% to 2,232.50. The index rose 8% in the past three sessions.

Steel Authority of India (down 5.06%), JSW Steel (down 3.17%), JSPL (down 2.81%), Tata Steel (down 2.77%), Vedanta (down 2.28%), NALCO (down 1.98%), Hindustan Copper (down 1.33%), Hindustan Zinc (down 0.99%), Hindalco Industries (down 0.68%) and NMDC (down 0.6%) declined.

Stocks in Spotlight:

Reliance Industries (RIL) fell 0.49% to Rs 2233.75. General Atlantic, a leading global growth equity firm, will invest Rs 3,675 crore into Reliance Retail Ventures (RRVL), a subsidiary of RIL. This investment values RRVL at a pre-money equity value of Rs 4.28 lakh crore. General Atlantic's investment will translate into a 0.84% equity stake in RRVL on a fully diluted basis.

State Bank of India (SBI) rose 0.22% to Rs 185.40. In a BSE filing made during market hours today, SBI said that its board approved raising additional AT1 bonds to the extent of Rs 5,000 crore by way of issuance of Basel-III compliant debt instruments, within the overall capital plan earlier approved by the board for raising equity during the financial year 2020-21 (FY21).

Ramco Systems hit an upper circuit of 5% at Rs 426 after the company signed an agreement with a Global Top 5 logistics major. The agreement is for modernizing and transforming the logistics major's multi-country Payroll operations on Ramco's Global Payroll platform. The logistics major will be unifying its payroll operations for 15 countries across Middle East & Africa.

BPCL slumped 8.60% to Rs 353 after the Government of India (GoI) extended the deadline for submitting initial bids to buy state-owned oil marketing company. "In view of further requests received from the interested bidders (IBs) and the prevailing situation arising out of COVID-19 pandemic, the last date for submission of EoIs is further extended to 16th November, 2020," GoI said in a statement. The Government had issued a preliminary information memorandum document (PIM) on 7 March 2020 for inviting expression of interest (EOI) for strategic disinvestment of 52.98% stake held by Government of India in BPCL. This is the fourth time that the government has extended the deadline for the submission of EoIs this year.

Panacea Biotec hit a lower circuit of 5% at Rs 184.45 after the US drug regulator issued a warning letter to the drug maker's unit in Baddi, Himachal Pradesh. The United States Food and Drug Administration (USFDA) issued a warning letter to company following its inspection of the company's Baddi plant conducted from 10 to 20 February 2020.