Midday Review

Date Heading Details
03-Jul-2020   14:47 Hrs IST Benchmarks trade fine fettle in late afternoon session <p align="justify">Indian equity benchmarks are trading in fine fettle in late afternoon session despite weak European markets. Traders took support with the Reserve Bank of India's (RBI) report that bank credit and deposits grew 6.18 percent and 11 percent to Rs 102.45 lakh crore and Rs 138.67 lakh crore, respectively, in the fortnight ended June 19. Sentiments remained upbeat even after Care Ratings in its latest report has revised India's Gross Domestic Product (GDP) growth forecast for the current financial year (FY21) to (-) 6.4 percent as economic activity continues to be under restriction due to the lockdown on account of the Covid-19 pandemic. In May, it had projected a decline in GDP growth of 1.5-1.6 percent in FY21.on the sectoral front, auto stocks remained in focus with a private report that automobile sales are likely to see a sequential improvement over the next two months even as the year-on-year decline is expected to continue up to December quarter due to disruptions related to the coronavirus pandemic.</p><p align="justify">On the global front, European markets were trading mostly in red, as spike in U.S. coronavirus infections tempered optimism. Back home, traders took note of Union minister Nitin Gadkari's statement that India needs foreign direct investments worth Rs 50 to 60 lakh crore and the money can be tapped mainly through infrastructure projects as well as MSME sector to accelerate the wheels of coronavirus-hit economy.</p><p align="justify">The BSE Sensex is currently trading at 36030.18, up by 186.48 points or 0.52% after trading in a range of 35872.38 and 36110.21. There were 19 stocks advancing against 11 stocks declining on the index.</p><p align="justify">The broader indices were trading in green; the BSE Mid cap index gained 0.61%, while Small cap index was up by 0.48%.<p align="justify">The top gaining sectoral indices on the BSE were Telecom up by 3.35%, Capital Goods up by 1.68%, Power up by 1.48%, Energy up by 1.41% and Industrials was up by 1.37%, while Metal down by 0.45% and Bankex was down by 0.16% were the only losing indices on BSE.<p align="justify">The top gainers on the Sensex were Bharti Airtel up by 3.85%, Power Grid up by 1.80%, Bajaj Auto up by 1.80%, Reliance Industries up by 1.73% and TCS up by 1.63%. On the flip side, HDFC Bank down by 1.30%, Indusind Bank down by 1.28%, Tata Steel down by 0.81%, HDFC down by 0.62% and Nestle down by 0.56% were the top losers.<p align="justify">Meanwhile, India's service sector remained weak in the month of June, as activity fell at another substantial month-on-month rate amid the ongoing economic disruption caused by the coronavirus disease 2019 (COVID-19) pandemic. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index was at 33.7 in June from 12.6 in May. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - was at 37.8 in June from 14.8 in May.<p align="justify">The report also noted that although the downturn lost further momentum in June, it remained excessively strong as the COVID-19 pandemic curtailed intakes of new work and disrupted business operations. The slower rate of decline was reflective of some stabilisation in activity levels, with around 59% of firms reporting no change in output since May. Meanwhile, only 4% registered growth, while 37% recorded a reduction.<p align="justify">On the price front, Indian service providers reported a reduction to their input costs in June. Where a decrease was reported, firms attributed that this general reduction in running costs due to lower activity levels at their units. Although the rate of deflation eased considerably, it was historically marked. Lower expenses were passed through to clients via discounts in June. Selling charges fell modestly and at a similar rate to that seen in May.<p align="justify">The CNX Nifty is currently trading at 10603.35, up by 51.65 points or 0.49% after trading in a range of 10562.65 and 10631.30. There were 30 stocks advancing against 20 stocks declining on the index.<p align="justify">The top gainers on Nifty were Adani Ports up by 4.09%, Bharti Airtel up by 3.64%, Bharti Infratel up by 2.52%, Tata Motors up by 2.46% and Eicher Motors up by 2.38%. On the flip side, Indusind Bank down by 1.42%, HDFC Bank down by 1.32%, Cipla down by 1.29%, JSW Steel down by 1.08% and Zee Entertainment down by 1.00% were the top losers.<p align="justify">European markets were trading mostly in red, UK's FTSE 100 decreased 24.04 points or 0.39% to 6,216.32, France's CAC decreased 15.04 points or 0.3% to 5,034.34. On the flip side, Germany's DAX was up by 4.50 points or 0.04% to 12,612.96.</p>
03-Jul-2020   12:54 Hrs IST Barometer gauges maintain gains <p align="justify">Indian stock markets were trading higher in afternoon session due to buying in telecom, power and capital goods sectors. Healthy buying was observed in blue-chip stocks like Bharti Airtel, Bajaj Auto and Power Grid Corporation. Besides, broader indices were also trading in green, supporting their larger peers. Traders' mood remained up-beat as Prime Minister Narendra Modi and Russian President Vladimir Putin discussed the coronavirus crisis and resolved to strengthen the Indo-Russia ties for jointly addressing the challenges of the post-Covid world. Sentiments also got boost, with reports that India's first indigenous Covid-19 vaccine (BBV152 COVID vaccine) may be launched by August 15. The Indian Council of Medical Research (ICMR) has written to select medical institutions and hospitals to fast-track clinical trial approvals for the vaccine.</p><p align="justify">On the global front, All Asian markets were trading in green as the optimism over economic recovery popped up following upbeat employment data from US Labor Department for month of June and China's better than expected service sector lifted the market sentiments. Back home, in scrip specific developments, shares of Lakshmi Vilas Bank jumped on report that Clermont Group eyes stake purchase in the bank and JB Chemicals gained as global investment firm KKR to pick up a controlling stake in the company.<br></p><p align="justify"><p align="justify">The BSE Sensex is currently trading at 36058.52, up by 214.82 points or 0.60% after trading in a range of 35872.38 and 36110.21. There were 22 stocks advancing against 8 stocks declining on the index.<p align="justify">The broader indices were trading in green; the BSE Mid cap index gained 0.81%, while Small cap index was up by 0.63%.<p align="justify">The top gaining sectoral indices on the BSE were Telecom up by 2.34%, Power up by 1.79%, Capital Goods up by 1.64%, Industrials up by 1.50% and Realty was up by 1.26%, while Metal down by 0.34% was the only losing index on BSE.<p align="justify">The top gainers on the Sensex were Bharti Airtel up by 2.62%, Bajaj Auto up by 2.29%, Power Grid Corporation up by 2.29%, TCS up by 1.59% and Axis Bank was up by 1.26%. On the flip side, HDFC Bank down by 0.89%, Ultratech Cement down by 0.64%, Indusind Bank down by 0.64%, Nestle down by 0.52% and Tata Steel was down by 0.39% were the top losers.<p align="justify">Meanwhile, World Bank Country Director in India Junaid Ahmad has said that the World Bank will provide a $750 million budget support to 15 lakh Micro, Small and Medium Enterprises (MSMEs) to increase liquidity access for viable small businesses impacted by nationwide lockdown due to Covid-19 outbreak. Lauding the government's support package of Rs 3.70 lakh crore for the MSME sector, which included Rs 3 lakh crore collateral-free loans for small businesses, he said the RBI also has used different instruments to infuse liquidity in the market either through banks or SIDBI.<p align="justify">Ahmad has stated that the $750 million support is in addition to the $2 billion funding the World Bank has already announced for the social and health sector. He said this takes the total lending to India due to Covid-19 to $2.75 billion within three months. He noted that the World Bank's MSME Emergency Response program will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. He added that the MSME funding is under the multilateral lender's Development Policy Loan, which is a direct budget support.<p align="justify">He further said ‘in development policy loans, we do not fund a specific expenditure... we give direct budget support when the government puts together policy framework that we believe deserve support. He also said the government steps would help unlock liquidity for MSMEs, strengthen NBFCs and small finance banks and enable inclusive access to financing.<p align="justify">The CNX Nifty is currently trading at 10620.45, up by 68.75 points or 0.65% after trading in a range of 10564.90 and 10631.30. There were 37 stocks advancing against 13 stocks declining on the index.<p align="justify">The top gainers on Nifty were Adani Ports &amp; SEZ up by 5.15%, Tata Motors up by 3.40%, Bharti Airtel up by 2.82%, Eicher Motors up by 2.57% and Power Grid Corporation was up by 2.34%. On the flip side, Cipla down by 1.43%, Hindalco down by 0.98%, JSW Steel down by 0.95%, HDFC Bank down by 0.81% and Vedanta was down by 0.80% were the top losers.<p align="justify">All Asian markets were trading higher; KOSPI rose 17.04 points or 0.8% to 2,152.41, Jakarta Composite soared 29.48 points or 0.59% to 4,996.26, Nikkei 225 surged 160.52 points or 0.72% to 22,306.48, Straits Times advanced 22.30 points or 0.85% to 2,658.99, Shanghai Composite gained 48.96 points or 1.58% to 3,139.53, Taiwan Weighted strengthened 104.02 points or 0.88% to 11,909.16 and Hang Seng was up by 306.03 points or 1.22% to 25,430.22.</p>
03-Jul-2020   12:07 Hrs IST Bourses extend gains in late morning deals
03-Jul-2020   10:51 Hrs IST Local bourses add some gains in morning session
03-Jul-2020   09:53 Hrs IST Markets trim opening gains; trade slightly higher
02-Jul-2020   14:48 Hrs IST Markets maintain upward momentum in late afternoon session
02-Jul-2020   12:48 Hrs IST Markets continue to trade in high spirit
02-Jul-2020   12:05 Hrs IST Sensex, Nifty hold strong gains in late morning deals
02-Jul-2020   10:58 Hrs IST Firm trade prevails in morning session
02-Jul-2020   09:53 Hrs IST Markets trade in fine-fettle in early deals