Domestic equity benchmarks slumped on Tuesday, dragged by banks shares. The barometer S&P BSE Sensex tumbled 660.63 points or 1.80% at 36,033.06. The Nifty 50 index slumped 195.35 points or 1.81% at 10,607.35.

Negative global cues and rising global coronavirus cases dented sentiment. Percolating tensions between the US and China also worried investors. The United States on Monday rejected China's disputed claims to offshore resources in most of the South China Sea.

In the broader market, the BSE Mid-Cap index lost 0.95% and the BSE Small-Cap index fell 0.93%.

Sellers outpaced buyers. On the BSE, 831 shares rose and 1852 shares fell. A total of 122 shares were unchanged.

COVID-19 update:

India reported 3,11,565 active cases of COVID-19 infection and 23,727 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 13,103,290 with 5,73,042 deaths so far, according to data from Johns Hopkins University.

Economy:

India's inflation based on wholesale price index (WPI) contracted by 1.81% (provisional) in June 2020 (over June 2019) compared with 2.02% during the corresponding month of the previous year. WPI contracted by 3.21% in May 2020.

The all-India general CPI inflation declined to 6.09% in June 2020, compared with 6.27% in May 2020. The corresponding provisional inflation rate for rural area was 6.20% and urban area 5.91% in June 2020 as against 6.18% and 6.43% in May 2020. The core CPI inflation eased to 4.87% in June 2020 compared with 4.93% in May 2020. The cumulative CPI inflation has moved up to 6.52% in June-May FY2020 compared with 3.07% in June-May FY2019.

The retail inflation has grown beyond the Reserve Bank of India's (RBI) upper margin of 6%. The government has mandated the Indian central bank to keep inflation within the range of 4% with a margin of 2% on either side.

The growth in the domestic retail inflation was mainly due to a rise in prices of pulses and products (up 16.68% Y-o-Y), followed by meat and fish (up 16.22% Y-o-Y), oils and fats (12.27% Y-o-Y) and spices (up 11.74% Y-o-Y).

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 5.826% as compared with 5.786% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.42, compared with its close of 75.19 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement fell 25 cents at $42.47 a barrel. The contract fell 52 cents, or 1.20% to settle at $42.72 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asian declined on Tuesday amid concerns over rising coronavirus cases across the globe coupled with rising US-Sino tensions.

The United States on Monday rejected China's territorial claims in the South China Sea, drawing an angry response from Beijing, which claimed Washington was trying to inflame tensions in the disputed waters.

China's yuan-denominated trade data for June was released on Tuesday, with exports rising 4.3% year-on-year while imports increased 6.2% as compared to a year earlier, according to customs data. China's dollar-denominated trade figures for June are expected to be released later. Singapore's economy contracted 12.6% in the second quarter as compared to a year ago, according to advance estimates by the Ministry of Trade and Industry released Tuesday.

The US stock market settled volatile session lower on Monday, 13 July 2020, as investors pocketed recent gains late afternoon amid rekindled worries about another coronavirus lockdown. The Dow Jones Futures were down 3 points, indicating a flat opening in US markets.

Meanwhile, World Health Organization Director-General Tedros Adhanom Ghebreyesus on Monday warned that too many countries are headed in the wrong direction. In several countries across the world, we are now seeing dangerous increases in Covid-19 cases, and hospital wards filling up again, Tedros added.

Buzzing Indian Segment:

The Nifty Bank index slumped 3.16% to 21,392.20, extending losses for third day. The index has fallen 6.61% in three sessions.

Axis Bank (down 5.08%), State Bank of India (down 3.37%), Kotak Mahindra Bank (down 2.76%), ICICI Bank (down 2.25%) and HDFC Bank (down 1.96%) tumbled.

Stocks in Spotlight:

Eveready Industries hit an upper circuit of 10% at Rs 88.90 on the BSE after the Burman family, promoters of Dabur India, hiked stake in the company via open market on Tuesday (14 July).

The Burman family has picked up 8.48% stake in Kolkata-based firm. Post this acquisition, the Burman family's stake in Eveready Industries stands increased to 19.84% from 11.35% earlier.

Index heavyweight Reliance Industries (RIL) fell 0.91% to Rs 1916.65. The stock hit a high of Rs 1941 and a low of Rs 1887.80 in intraday trade.

Another index major, Housing Development Finance Corporation (HDFC) fell 2.94%. The housing finance major on Monday (13 July) said it is planning to raise up to Rs 45,000 crore by issuing debt securities, and will seek approval of shareholders in its upcoming AGM later this month.

The board of directors of HDFC will meet on 30 July to announce the Q1 June 2020 results. The 43rd annual general meeting (AGM) of the corporation is scheduled to be held later on the same day (30 July 2020).

5paisa Capital hit an upper circuit of 5% at Rs 324.60 after it reported consolidated net profit of Rs 2.81 crore in Q1 June 2020 as compared to net loss of Rs 0.52 crore in Q1 June 2019. Total income rose 85.17% to Rs 42.44 crore. The company said that it has maintained its swift pace of client acquisitions with over 160,000 acquisitions in the quarter, crossing 700,000 customers in total.

BF Utilities hit an upper circuit of 10% at Rs 220.95 after billionaire investor and DMart founder, Radhakishan Shivkishan Damani, acquired 1.30% stake in the Kalyani Group-owned company during April-June 2020 quarter.

Meanwhile, BF Utilities on Monday (13 July) announced that it has suspended operations at its Pune office from 14 July 2020 till further notice, to comply with the lockdown order issued by Pune Municipal Corporation.

Motherson Sumi Systems fell 2.29% after the credit rating agency Moody's Investors Service lowered the outlook on the company's rating to negative from ratings under review. The ratings agency said that the negative outlook indicates the risk of a downgrade if the global auto industry does not recover, with a slower-than-anticipated recovery in the company's financial metrics.

Dr. Reddy's Laboratories gained 2.18%. The company announced the launch of over-the-counter Nicotine Polacrilex lozenges, 2 mg and 4 mg, the store brand version of Nicorette lozenges in the US market. Nicotine Polacrilex lozenges are medical products used to aid in smoking cessation in adults.

Trading for the week began on positive note as the key indices logged modest gains on Monday. Intraday volatility was high. The Nifty managed to close above 10,800 mark after falling below that level in intraday trade. Gains were led by index pivotals Reliance Industries, Infosys and Hindustan Unilever.

The barometer S&P BSE Sensex rose 99.36 points or 0.27% at 36,693.69. The Nifty 50 index added 47.15 points or 0.44% at 10,815.20.

In the broader market, the S&P BSE Mid-Cap index gained 0.05% while the S&P BSE Small-Cap index lost 0.15%.

The market breadth was weak. On the BSE, 1119 shares rose and 1579 shares fell. A total of 178 shares were unchanged. In the Nifty 50 index the breadth was positive with 33 stocks advancing and while 17 stocks declining. 1 stock remain unchanged.

Among the sectoral indices on the BSE, the S&P BSE Energy index (up 2.47%), the S&P BSE Telecom index (up 1.93%) and the S&P BSE Teck index (up 1.61%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Realty index (down 1.52%), the S&P BSE Finance index (down 1.49%) and the S&P BSE Bankex (down 1.39%) underperformed the S&P BSE Sensex.

Stocks in Spotlight:

Reliance Industries (RIL) gained 2.97%. The scrip surged 3.64% to hit an all time high of Rs 1,947 in intraday trade today. RIL and Jio Platforms announced that Qualcomm Ventures, the investment arm of Qualcomm Incorporated, an industry leader in wireless technologies, has committed to invest upto Rs 730 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Qualcomm Ventures' investment will translate into 0.15% equity stake in Jio Platforms on a fully diluted basis. The investment will deepen the ties between Qualcomm and Jio Platforms, to support Jio Platforms on its journey to rollout advanced 5G infrastructure and services for Indian customers.

Separately, Reliance Industries' subsidiary Jio Platforms received subscription amounts from Interstellar Platform Holdings Pte (Rs 1,894.50 crore for 0.39% stake), The Public Investment Fund (Rs 11,367 crore for 2.32% stake), SLP Redwood Holdings and SLP Redwood Co-Invest (DE), L.P. (Silver Lake) (Rs 10,202.55 crore for 2.08% stake) and General Atlantic Singapore JP Pte (Rs 6,598.38 crore for 1.34% stake).

Infosys rose 1.91%. Infosys and Old National Bancorp, the largest financial services bank holding company headquartered in Indiana, announced a strategic partnership that will enable faster adoption of digital solutions, modernize ONB's existing technology infrastructure, and enhance both the client and employee experience.

Hindustan Unilever gained 1.84%. A meeting of the board of directors of the company will be held on July 21, 2020, through Audio-Visual means to consider the proposal for payment of interim (special) dividend, if any, for the financial year ending March 31, 2021.

Avenue Supermarts fell 3.86% after the company's consolidated net profit slumped 85.22% to Rs 49.56 crore on 32.94% fall in total income to Rs 3,884.57 crore in Q1 June 2020 over Q1 June 2019.

HDFC Bank fell 2.26% to Rs 1080.40. Media reports suggested that the private lender is probing into the allegations of improper lending practices in its vehicle finance business. While the nature of these allegations could not be ascertained, the bank is reportedly looking into them with regards to its vehicle finance vertical, the reports added.

Biocon rose 0.07%. The company said that it has received the Drugs Controller General of India's (DCGI) approval to market Itolizumab injection for emergency use in India for the treatment of cytokine release syndrome (CRS) in moderate to severe ARDS (acute respiratory distress syndrome) patients due to COVID-19.

Clariant Chemicals (India) was locked in an upper circuit of 20% at Rs 583.55 after the company declared a special interim dividend of Rs 140 per equity share for the financial year FY 2020-21. The company has fixed 18 July 2020 as the record date for the purpose of payment of special interim dividend.

BASF India jumped 11.18%. The company's board approved the acquisition of 100% stake in BASF Performance Polyamides from BASF Nederland B.V. and BASF SE, for a consideration of an amount not exceeding Rs. 305 crore. This acquisition would strengthen the Company's position as a solution provider for key industries & would enhance market access to key growth markets. It would help the Company in expanding its existing 'Materials' segment and extend value chain through backward integration into key raw materials.

Steel Authority of India (Sail) lost 3.25%. The company's consolidated net profit surged 382.9% to Rs 2,647.52 crore on 12.5% decline in net sales to Rs 16,171.83 crore in Q4 March 2020 over Q4 March 2019. In FY20, Sail made a turnover of Rs 61,024.88 crore. EBITDA per tonne of saleable steel improved to Rs 7,869 from Rs 7,284 in FY19. The company's EBITDA/turnover figure stood at 18.35% compared to 15.52%. Sail also achieved its best ever 14.23 million tonnes (MT) annual sales during FY20.

Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) lost 1.27%. The company said it reported 152.11% surge in consolidated net profit to Rs 240.01 crore on 6.2% decline in net sales to Rs 1,342.47 crore in Q4 March 2020 over Q4 March 2019. The board has recommended a dividend of Rs 5 per equity share for the year ended 31 March 2020.

Galaxy Surfactants gained 1.72% after the company restarted operations at its units in Tarapur location in a phased manner after receiving necessary permissions from the statutory authorities. In mid-April, there had been a small intermediate feed tank blast at the company's Tarapur plant. The firm on April 15 had announced the closure of the plant and had said that the operations at the same would be resumed post obtaining necessary permissions from the statutory authorities.

COVID-19 Update:

India reported 3,01,609 active cases of COVID-19 infection and 23,174 deaths while 5,53,470 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 12,910,357 with 569,128 deaths so far, according to data from Johns Hopkins University.

Economic data:

The retail inflation data for the month of June 2020 will be released later today. Investors await the release of June inflation data as it could open the possibility of further interest rate cuts by the RBI to help the economy amid surging coronavirus surging cases and regional lockdowns.

The Ministry of Statistics And Programme Implementation on Friday released quick estimates of the Index of Industrial Production (IIP) which showed the index value at 88.4 in May against 53.6 in April, indicating a graded pickup in industrial activity. The index stood at 135.4 in May 2019. IIP for May 2020 declined by 34.7% but at a slower pace compared to April 2020, where the index had contracted by 57.6%.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.787% as compared with 5.760% 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 75.19, compared with its close of 75.2050 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement fell 56 cents at $42.68 a barrel. The contract rose 89 cents, or 2.10% to settle at $43.24 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement rose 0.54% to Rs 49,140.

Global Markets:

Shares in Europe and Asia advanced across the board on Monday buoyed by hopes of a coronavirus vaccine, though a spike in infections around the world capped gains.

The Dow Jones Futures were trading 205 points higher, indicating a strong start in US markets today.

Investors remained watchful of the corporate earnings as that would reveal how companies fared during the second quarter of the fiscal year 2020-21, the period during which when nationwide lockdowns were imposed in most of the countries around the globe.

The US stock market settled session higher after recouping early losses on Friday, 10 July 2020, as a positive update from Gilead's antiviral drug to treat COVID-19 brushed off worries about a fresh wave of coronavirus infections and its impact on the economic recovery.

Gilead Sciences said on Friday that an analysis of clinical-trial data for its remdesivir drug found a 62% reduction in mortality risk among severely ill COVID-19 patients compared with standard care.

Domestic shares ended with modest losses on Friday, dragged by banks and financials stocks. Strength in index pivotals Reliance Industries and TCS supported the indices. The barometer S&P BSE Sensex lost 143.36 points or 0.39% at 36,594.33. The Nifty 50 index fell 45.40 points or 0.42% at 10,768.05.

The Nifty opened lower at 10,764.10, but bounced back to hit the day's high of 10,819.40. The recovery was short lived as the index reversed gains and hit the day's low of 10,713 in afternoon trade. The Nifty firmed up once again in mid-afternoon trade. After some range bound trading in late trade, it ended with modest losses.

In the broader market, the S&P BSE Mid-Cap index slipped 0.72% while the S&P BSE Small-Cap index shed 0.35%.

The market breadth was weak. On the BSE, 1000 shares rose while 1663 shares fell. A total of 170 shares were unchanged.

COVID-19 Update:

India reported 2,76,682 active cases of COVID-19 infection and 21,604 deaths while 4,95,515 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 12,279,131 with 555,166 deaths so far, according to data from Johns Hopkins University.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.76% compared with previous closing of 5.772% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.205 compared with its previous closing 74.995.

In the commodities market, Brent crude for September 2020 settlement fell 86 cents to $41.49 a barrel.

MCX Gold futures for 5 August 2020 settlement rose 0.54% to Rs 49,140.

Global Markets:

European markets advanced while Asian shares declined on Friday. Rising coronavirus cases in the US suppressed hopes of a quicker economic recovery from the pandemic, while investors looked forward to earnings season.

US stocks settled lower on Thursday, 9 July 2020, as investors continued to back away from risk assets after fresh data showed that initial unemployment claims in the US remain elevated, and the number of confirmed new COVID-19 cases in the US hit a new single-day high Wednesday.

Stock investors took safe heaven stance amid concerns about coronavirus infections in the country after more than 60,000 new COVID-19 cases were reported on Wednesday, the biggest increase ever reported by a country in a single day. Florida reported a record increase in hospitalizations. With COVID-19 cases on the rise in 42 states across the United States, investors fear that re-imposition of lockdown measures will significantly weaken recovery chances.

Sentiments were also dampened after a report on weekly jobless claims showed that US first-time claims for unemployment benefits tumbled to 1.314 million in the week ended July 4th, a decrease of 99,000 from the previous week's revised level of 1,413 million, according to a report released by the Labor Department on Thursday.

Buzzing Indian Segment:

Banks and financial stocks tumbled. The Nifty Bank index fell 2.22% to 22,398.45.

HDFC Bank (down 1.81%), Kotak Mahindra Bank (down 1.36%), ICICI Bank (down 2.75%) and Axis Bank (down 3.14%) declined.

Shares of State Bank of India (SBI) fell 1.73% to Rs 195.65 amid profit taking. The stock rose 7.77% in four sessions to end at Rs 199.10 yesterday, from its recent closing low of Rs 184.75 recorded on 3 July 2020.

In an exchange filing made during market hours today, SBI informed that the meeting of the board of directors of the company is scheduled on 15 July 2020 to consider raising Additional Tier 1 (AT 1) and Tier 2 capital by way of issuance of Basel III compliant debt instrument in USD and/or INR during FY21.

Punjab National Bank (PNB) lost 5.53% after the bank reported a loan of Rs 3,688.58 crore granted to Dewan Housing Finance (DHFL) as fraud. In a regulatory filing, the bank said that it has already made provisions amounting to Rs 1,246.58 crore.

Meanwhile, PNB on Thursday said its board has approved a proposal to raise Rs 10,000 crore through a mix of both equity and debt. The board also approved the bank to seek shareholders' nod for raising of equity capital for an amount up to Rs 7,000 crore in the forthcoming annual general meeting.

Yes Bank fell 4.32% to Rs 25.50. The private sector bank said its capital raising committee at its meeting today (10 July) approved the floor price of its Rs 15,000 crore FPO at Rs 12 per equity share and a cap of Rs 13 per share. A discount of Re 1 per equity share will be given to the eligible employees of the bank bidding in employee reservation portion, Yes Bank said in a statement during trading hours today (10 July). In the FPO, shares can be bid in lots of 1,000 equity shares.

The bank filed a red herring prospectus on 7 July 2020 for the FPO to raise up to Rs 15,000 crore via a fresh issue of equity shares. The FPO will remain open between 15 and 17 July 2020. The bank has set 14 July as anchor investor bidding date.

Housing finance major HDFC fell 2.87%. People's Bank of China (PBoC) has sold a part or all of its stake in Housing Development Finance Corporation (HDFC) in the April-June quarter. According to the latest data disclosed by the lender to the stock exchanges, PBoC was not among key shareholders of the company as of 30 June 2020. PBOC held 1.01% stake in HDFC as on 31 March 2020. As a result, the holding of foreign portfolio investors declined to 70.17% as on 30 June 2020 against 70.88% in the preceding quarter ended 31 March 2020.

PNB Housing Finance declined 3.83%. The housing finance company on 9 July announced that the outbreak of the Covid-19 pandemic required a change in the strategy for the organisations. As a result, PNB Housing also reworked on its FY2020-21 business plan and presented to its board, which approved the business plan for FY21.

The company said that the pandemic and the resultant lockdown impacted the disbursements in Q4 March 2020 and Q1 June 2020. However, the numbers are visibly improving month-on-month but on the overall basis the disbursements are expected to degrow during the year. The focus will be on the mass housing lower risk weighted retail segment.

Stocks in Spotlight:

Index bellwether Reliance Industries (RIL) rose 2.95% to Rs 1878.50. It hit a record high of Rs 1884.40 in the late trade.

RIL and BP on Thursday (9 July) announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility (RBML). BP has paid RIL $1 billion for a 49% stake in the JV, with RIL holding 51%. RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.

IT pivotal TCS rose 0.78%. The company reported a 13% decline in consolidated net profit to Rs 7,049 crore on a 4% fall in revenue to Rs 38,322 crore in Q1 June 2020 (Q1FY21) over Q4 March 2020 (Q4FY20). Operating margin stood at 23.6% in Q1 FY21 from 25.1% in Q4 FY20. The deal wins stood at $6.9 billion in Q1 FY21, against $8.9 billion in Q4 FY20.

Commenting on the Q1 result, Rajesh Gopinathan, the chief executive officer (CEO) and managing director (MD) of TCS, has said that: The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter. We believe it has bottomed out, and we should now start tracing our path to growth.

Tata Motors rose 0.51%. Tata Motors group global wholesales tumbled 64% to 91,594 units in Q1 June 2020 over Q1 June 2019.

Tata Motors on Thursday said that its subsidiary JLR's retail sales for the three-month period to 30 June 2020 were significantly impacted by Covid-19 in line with the unprecedented market conditions, but improved month-on-month through the quarter. Strict lockdowns and social distancing measures for Covid-19 resulted in temporary shutdowns of most retailers and the company's manufacturing plants in April and much of May.

Container Corporation of India (CONCOR) rose 0.49%. said that the company's total throughput volumes declined 20.95% to 7,32,711 twenty foot equivalent units (TEUs) (provisional) in Q1FY21 from 9,26,923 TEUs in Q1FY20.

FirstSource Solutions soared 7.43% after well-known investor Rakesh Jhunjhunwala increased stake in the company to 2.88% during Q1 June 2020 from 2.06% held earlier.

Domestic shares resumed uptrend on Thursday after a day's pause. Banks and metal shares rallied while FMCG shares declined. Indices witnessed a bout of volatility due to expiry of weekly index options on NSE.

The barometer S&P BSE Sensex jumped 408.68 points or 1.12% at 36,737.69. The Nifty 50 index climbed 107.70 points or 1.01% at 10,813.45.

HDFC (up 3.05%), Reliance Industries (up 1.52%) and HDFC Bank (up 1.47%) were major index movers.

IT major TCS fell 0.60% ahead of its Q1 results later today.

After opening higher at 10,755.55, the Nifty pared gains and hit a low of 10,733. The index reclaimed 10,800 mark in afternoon session. After some range bound trading, fresh buying in the final hour pushed the Nifty near the day's high of 10,836.85.

In the broader market, the BSE Mid-Cap index rose 0.07% and the BSE Small-Cap index gained 0.49%. Both these indices lagged the Sensex.

The market breadth was positive. On the BSE, 1422 shares rose and 1273 shares fell. A total of 156 shares were unchanged.

COVID-19 update:

India reported 2,69,789 active cases of COVID-19 infection and 21,129 deaths while 4,76,377 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 12,043,080 with 549,508 deaths so far, according to data from Johns Hopkins University.

SEBI, CBDT data-sharing pact:

A formal Memorandum of Understanding (MoU) was signed between the Central Board of Direct Taxes (CBDT) and the Securities and Exchange Board of India (SEBI) for data exchange between the two organizations. The MoU will facilitate the sharing of data and information between SEBI and CBDT on an automatic and regular basis. In addition to regular exchange of data, SEBI and CBDT will also exchange with each other, on request and suo moto basis, any information available in their respective databases, for the purpose of carrying out their functions under various laws.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.772% as compared with 5.778% 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 74.9950, compared with its close of 75.02 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement rose 7 cents at $43.36 a barrel. The contract rose 21 cents, or 0.49% to settle at $43.29 a barrel in the previous trading session.

Foreign Markets:

Most shares in Europe declined and while Asian shares ended higher on Thursday as investors monitored upcoming company earnings, with hopes that global stimulus efforts will result in upbeat business outlooks.

In the Malaysian market, shares of AirAsia Group, the budget airline operator, gained over 6% on Thursday after the company reportedly said that it was in talks to raise more than 1 billion ringgit ($234.52 million) in funds, be it debt or equity, as it looked to at least halve cash expenses this year. This comes a day after the airline's auditor cast doubt on its ability to continue as a going concern after the group had liabilities that exceeded its current assets by more than $400 million at the end of 2019, media reports said. Consequently, AirAsia's shares fell as much as 17.54% in the previous session.

Meanwhile, the US stock market settled session higher after fluctuating in and out of the boundary line over the course of the trading day on Wednesday, 08 July 2020, as investors assessed economic-reopening efforts in the face of climbing coronavirus cases, causing many regions to pause or reverse their reopening plans.

Stock investors took sidelines due to nagging unease over the outlook for the global economy in the midst of rising U.S. coronavirus infections. Investor concerns that a resurgence of coronavirus cases, specifically across the Southeast and Southwest of the U.S.—known as the Sun Belt—will make a quick global recovery more difficult. Several states have had to pull back or postpone reopening efforts to control surging COVID-19 cases, threatening the speed of the economic recovery in the US. A lockdown in Australia's city of Melbourne has also raised concerns.

Buzzing Indian Index:

The Nifty FMCG index fell 0.33% to 30,671.75. It was the only losing sectoral index on the NSE.

Procter & Gamble Hygiene & Health Care (down 3.3%), Marico (down 1.63%), Jyothy Laboratories (down 0.75%), Colgate Palmolive (India) (down 0.69%), Godrej Consumer Products (down 0.47%), Hindustan Unilever (down 0.45%), Nestle India (down 0.29%), Britannia Industries (down 0.19%) and Bajaj Consumer Care (down 0.17%) declined.

Metal shares rallied. Hindalco Industries jumped 6.90% to Rs 165.70. Jindal Steel & Power climbed 4.86% to Rs 164.10. SAIL rallied 3.82% to Rs 36.70.

Tata Steel rose 3.05%. The steel major's production volume in India declined 33.5% to 2.99 million tons (MT) (provisional) in Q1 June 2020 from 4.50 MT in Q1 June 2019. The company's sales volume in India stood at 2.92 MT (provisional) in Q1FY21, declining 26.2% from 3.96 MT in Q1FY20.

Tata Steel Europe achieved production of 2.14 MT (provisional) in Q1FY21, declining 19% from 2.65 MT in Q1FY20. Sales volume stood at 1.94 MT (provisional) in Q1FY21, falling 14% from 2.26 MT in Q1FY20.

Stocks in Spotlight:

ICICI Bank rose 0.45%. The private lender on Wednesday said that it will raise up to Rs 15,000 crore via share sale.

Yes Bank rose 2.11% after the bank said it will launch its follow-on public offer (FPO) on 15 July. The FPO will close on 17 July, the lender said in a filing to the stock exchanges on Thursday (9 July). The bank has set 14 July as anchor investor bidding date. The bank filed a red herring prospectus on 7 July 2020 for the FPO to raise up to Rs 15,000 crore via a fresh issue of equity shares. The offer will include an employee reservation portion of Rs 200 crore.

Yes Bank's capital raising committee of the board will meet on or after July 10, 2020 to consider and approve the price band and discount if any as permitted under SEBI regulations.

Meanwhile, State Bank of India's board approved a maximum investment of up to Rs 1,760 crore in Yes Bank's upcoming FPO.

State Bank of India gained 3.72%. The executive committee of State Bank of India's central board on Wednesday accorded its approval to SBI Capital Markets (SBICAP), the bank's wholly-owned investment banking subsidiary, to invest in lnvestec Capital Services lndia to form a joint venture (JV) entity.

South Indian Bank hit an upper circuit of 5% at Rs 8.37 after the bank's standalone net profit jumped 11.05% to Rs 81.65 crore on a 4.6% increase in total income to Rs 2,171.86 crore in Q1 June 2020 over Q1 June 2019. Net Interest Income (NII) rose 10% to Rs 587 crore in Q1 June 2020 as compared to Rs 536 crore in Q1 June 2019. The bank's provisions and contingencies surged 42.95% to Rs 293.08 crore in Q1 June 2020 over Q1 June 2019. The provision coverage ratio of the bank was at 58.8% as on Q1 June 2020, higher than 45.1% in Q1 June 2019.

Can Fin Homes rose 1.13%. The company said that the meeting of the board of directors of the company is scheduled on 17 July 2020 to consider and approve the proposal of raising funds by way of issue of equity shares through qualified institutions placement and/or preferential issue to promoters or rights issue and/ or any other permissible securities.

GAIL (India) rose 2.73%. Life Insurance Corporation of India (LIC)'s stake in GAIL (India) has increased to 7.019% from 5.004% earlier, after it bought 20.37 crore shares of the state-run company between 13 February 2019 and 7 July 2020.

Strides Pharma Science rose 2.35% after its Singapore-based subsidiary, Strides Pharma Global, received US FDA approval for butalbital, acetaminophen, caffeine, and codeine phosphate capsules. The drug is indicated for the relief of the symptom complex of tension (or muscle contraction) headache.

BASF India fell 1.81% after the company said it has received a tax demand notice of Rs 46.01 crore for the period 2015-2016 from Commercial Tax Department, Karnataka.

Bharat Heavy Electricals (BHEL) gained 1.94% after the company said it commissioned a 1.7 megawatts solar photovoltaic plant in Madhya Pradesh for the Indian Railways.

The market corrected on Wednesday, snapping a five-day rising streak. Mixed global cues triggered profit booking in domestic shares. IT stocks tumbled while metal shares bucked trend.

The barometer S&P BSE Sensex tumbled 345.51 points or 0.94% at 36,329.01. The Nifty 50 index lost 93.90 points or 0.87% at 10,705.75. Both these indices jumped about 5% in the past five trading sessions.

The Nifty opened higher at 10,818.65 on Wednesday, but soon pared gains in early trade. The index hovered around the flat line for most part of the session. Strong selloff in the last hour of trade dragged the benchmark index briefly below 10,700 mark.

In the broader market, the BSE Mid-Cap index fell 0.39% and the BSE Small-Cap index declined 0.43%.

The market breadth was negative. On the BSE, 1246 shares rose and 1513 shares fell. A total of 160 shares were unchanged.

Association of Mutual Funds in India (AMFI) Monthly Data:

Net equity inflows into mutual funds slumped to Rs 240.55 crore in June from Rs 5,256.52 crore in May, as per the latest data released by AMFI. Large cap funds and multi cap funds saw outflows in June. Meanwhile, the total inflows into various debt mutual fund categories stood at Rs 2,861.68 crore, compared to Rs 63,665.54 crore in May.

COVID-19 update:

India reported 2,64,944 active cases of COVID-19 infection and 20,642 deaths while 4,56,830 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,830,885 with 544,163 deaths so far, according to data from Johns Hopkins University.

Economy:

Union Finance Minister Nirmala Sitharaman held review meeting with CMDs of 23 Central Public Sector Enterprises (CPSEs) on Tuesday to boost expenditure in the economy. In 2019-20, the capital expenditure (capex) by the 23 CPSEs stood at Rs 1,66,029 crore against the target of Rs 1,64,822 crore, which is 101%. Sitharaman said CPSEs have a very important role in giving a push to the economy. She encouraged the CPSEs to perform better to achieve targets and to ensure that the capital outlay provided to them for the year 2020-21 is spent properly and within time. FM said better performance of CPSEs can help the economy in a big way to recover from the impact of COVID-19. FM stated that extraordinary situation requires extraordinary efforts and with collective efforts, we will not only perform better but also help the Indian economy to achieve better results.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.778% as compared with 5.792% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.02, compared with its close of 74.9350 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement fell 7 cents at $43.01 a barrel. The contract fell 2 cents, or 0.05% to settle at $43.08 a barrel in the previous trading session.

Foreign Markets:

European shares traded lower while Asian shares ended mixed on Wednesday. Investors remained concerned over rising coronavirus cases in some parts of the world that cast doubts over the pace of the global economic recovery.

The US stock market tumbled on Tuesday, 07 July 2020, with the S&P 500 snapping its 5-day win streak, as investors withdrew profit off the table amid concerns about sharp jump in new coronavirus cases nationwide coupled with gloomy economic forecasts that suggested uneven economic recovery. Most of sectors declined, with bank stocks, whose performance is linked to the outlook for the economy, led losses. Airline and travel-related stocks, which were among the hardest hit during lockdowns, also fell.

Florida's greater Miami area became the latest US coronavirus hot spot to roll back its reopening, while Texas registered an all-time high in the number of people hospitalized at any one moment with COVID-19 for an eighth straight day. Federal Reserve Bank of Atlanta President Raphael Bostic said the renewed spread of coronavirus may threaten the pace of the recovery as businesses and consumers put plans on hold.

The Organisation for Economic Co-operation and Development factored in the risk of a second wave of COVID-19 in its bleak economic forecasts, adding that countries need to move quick to extend unemployment benefits.

Buzzing Indian Segments:

The Nifty IT index fell 1.72% to 15,513.65. The index jumped 4.83% in the past five trading sessions.

HCL Technologies (down 2.91%), Infosys (down 2.49%), Oracle Financial Services Software (down 1.29%), Wipro (down 0.78%), Tech Mahindra (down 0.77%) and Mphasis (down 0.24%) tumbled.

Sector bellwether TCS fell 2.30% to Rs 2217.65. The company's board will consider Q1 results tomorrow, 9 July 2020.

The Nifty Metal index rose 1.57% to 2,054.30. The index fell 1.73% in the previous session.

Hindustan Copper (up 10.56%), SAIL (up 8.94%), NALCO (up 6.72%), Vedanta (up 2.65%), NMDC (up 2.48%), JSW Steel (up 2.36%), Hindalco Industries (up 1.74%), Tata Steel (up 1.23%) and Jindal Steel & Power (up 0.64%) spurted.

Stocks in Spotlight:

Reliance Industries (RIL) fell 1.46%. Jio Platforms, a subsidiary of RIL, on Tuesday (7 July) received the subscription amount from Jaadhu Holdings, LLC (a wholly owned subsidiary of Facebook Inc). Jio Platforms has allotted equity shares to Jaadhu Holdings following which Jaadhu Holdings holds 9.99% of the fully diluted equity share capital of Jio Platforms.

Maruti Suzuki India declined 2.93%. The company's total production dropped 54.66% to 50,742 units in June 2020 from 1,11,917 units produced in June 2019. Total passenger vehicle production fell 54.87% to 49,476 units in June 2020 over 1,09,641 units in June 2019. On a sequential basis, production level soared 1266% from 3,714 units produced in May 2020.

Titan Company slipped 2.43%. The company said jewellery revenue in May and June months were at slightly below 20% and around 70% compared to the corresponding months of the previous year. The division also sold gold in the bullion market worth Rs 610 crore at market rates to optimize the inventory levels. After suffering complete loss of sales in April due to lockdown, Titan Company started reopening the stores, primarily high street stores, from 6th May onwards in the non-containment areas. As at the end of June 2020, the company has re-opened around 83% of its stores across all businesses. Almost all manufacturing operations have commenced operations.

Indian Oil Corporation (IOCL) rose 0.87% after the company said it has resumed work on projects worth Rs 1.04 lakh crore across the country, after the easing of lockdown from 20 April 2020. IOCL has commenced works on 336 projects that have investment of more than Rs 1 crore in each project, at an anticipated project cost totaling to Rs 1.04 lakh crore. The amount spent on these ongoing projects is about Rs 1,764 crore till the end of June 2020. Additionally, more than 50 projects have also resumed since 1 July 2020, a company said in a statement issued on 8 July 2020.

Yes Bank gained 1.36%. The bank on Tuesday (7 July 2020) announced that the capital raising committee of the board of directors has approved raising funds by way of a further public offering (FPO). It added that the committee would meet on or after July 10, 2020 to consider and approve the price band and discount if any as permitted under SEBI regulations.

Adani Ports and Special Economic Zone (APSEZ) fell 1.50%. The company said it will raise $1.25 billion through dollar bonds to repay its existing debt. The fund-raising plan was approved by the board of APSEZ on Tuesday (7 July). The bonds will be issued in one or more tranches overseas on a private placement basis or otherwise, to eligible persons, entities, bodies corporate, companies, banks, financial institutions and any other categories of eligible investors permitted to invest in the bonds under applicable laws. The board has authorized the finance committee to determine the detailed terms and conditions thereof.

Lupin fell 0.63%. The drug major recalled metformin hydrochloride extended-release tablets out of an abundance of caution in line with the ongoing interaction with the US Food and Drug Administration on NDMA impurity levels. NDMA is classified as a probable human carcinogen (a substance that could cause cancer) based on results from laboratory tests. NDMA is a known environmental contaminant and found in water and foods, including meats, dairy products and vegetables.

NBCC (India) fell 0.18% after the company said it secured total business worth Rs 431.63 crore in June 2020. The company bagged an EPC order worth Rs 284.63 crore from BHEL for construction of natural draught cooling towers for 5X800 MW Yadadri STPP. It also won a project worth Rs 147 crore for construction & development of student's hostel and faculty apartments at IIT-BHU, Varanasi. The announcement was made on Wednesday (8 July).

NCC lost 1.51%. The construction firm said it received five new orders totaling to Rs 1396 crore in June 2020. All five orders pertain to water division. These orders were received from various state government agencies and do not include any internal orders, NCC said.

The market extended its winning run for the fifth consecutive session on Tuesday. The barometer S&P BSE Sensex gained 187.24 points or 0.51% at 36,674.52. The Nifty 50 index added 36 points or 0.33% at 10,799.65.

Easing of lockdown curbs, impressive recovery rate from coronavirus and decent Q1 operating performance by banks boosted sentiment. Progress of monsoon across the country also cheered investors. Surplus rainfall is good for kharif season, sowing for which is currently underway in the country.

In the five consecutive sessions, the Nifty has risen 4.83% and the Sensex has risen 5.04%.

On Tuesday, the Nifty opened higher at 10,802.85. It soon reversed trend and hit an intraday low of 10,689.70 in mid-morning trade. The index firmed up once again and briefly crossed 10,800 in mid-afternoon session.

In the broader market, the BSE Mid-Cap index rose 0.58% and the BSE Small-Cap index gained 0.57%. Both these indices outperformed the Sensex.

The market breadth was negative. On the BSE, 1339 shares rose and 1379 shares fell. A total of 163 shares were unchanged on the BSE.

COVID-19 update:

India reported 2,59,557 active cases of COVID-19 infection and 20,160 deaths while 4,39,947 patients have been cured, 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.

Economy:

The World Bank and the Government of India signed the $750 million agreement for the MSME Emergency Response Programme to support increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis. The World Bank's MSME Emergency Response Programme 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. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.793% as compared with 5.836% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.9350, compared with its close of 74.6850 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement fell 54 cents at $42.56 a barrel. The contract fell 4 cents, or 0.09% to settle at $43.10 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia declined on Tuesday amid profit booking after a recent sharp upmove. German industrial production rose to 7.8% in May, following a 17.5% contraction in April.

In US, stocks finished sharply higher Monday, with the Nasdaq scoring a record close, as a rebound in U.S. services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States. The gains came despite a record surge in new COVID-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.

Amazon.com rose 5.8% to close at $3,057 a share, topping the $3,000 level for the first time in its history and clinching a $1.5 trillion valuation.

The Institute for Supply Management's (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, a report showed.

Buzzing Indian Segments:

Shares of hotel companies rose after the Maharashtra government allowed hotels to reopen with 33% capacity from 8 July. Kamat Hotels (up 19.86%), Chalet Hotels (up 10%), Lemon Tree Hotel (up 4.85%), Indian Hotels Company (up 4.48%), TajGVK Hotels (up 3.73%), HLV (up 3.19%), EIH (up 2.88%) and ITDC (up 1.63%) advanced.

The Nifty IT index rose 2.07% to 15,784.95. The index is up 7.15% in four sessions.

Persistent Systems (up 4.28%), Infosys (up 4.01%), HCL Technologies (up 2.55%), Mindtree (up 2.31%), Mphasis (up 1.53%), Wipro (up 0.9%), Tech Mahindra (up 0.88%) and TCS (up 0.3%) rallied.

The Nifty Bank index rose 1.93% to 22,628. The index has risen 3.55% in two sessions.

IndusInd Bank (up 6.10%), RBL Bank (up 5.06%), Federal Bank (up 4.19%), IDFC First Bank (up 3.86%), ICICI Bank (up 3.84%), Axis Bank (up 3.09%), State Bank of India (up 0.27%), HDFC Bank (up 0.19%) and Kotak Mahindra Bank (up 0.03%) jumped.

Punjab National Bank (PNB) fell 0.81%. The bank 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.

Bandhan Bank jumped 10.65% on reporting strong growth in advances and deposits in Q1 June 2020. The private lender's loans & advances (on book+off book+TLTRO investments) jumped 18% year-on-year to Rs 74,325 crore (merged) in Q1 June 2020 as against Rs 63,164 crore in Q1 June 2019. Total deposits rose 35% to Rs 60,602 in Q1 June 2020 from Rs 44,796 crore in Q1 June 2018. Retail to total deposits were flat at 78% in Q1 June 2020 over Q1 June 2019. CASA deposits were reported at Rs 22,473 crore during the quarter, rising 47% from Rs 15,257 crore in the corresponding quarter last year. CASA ratio improved to 37.1% in Q1 June 2020 from 34.1% in the same quarter last year.

Stocks in Spotlight:

Bajaj Finance gained 7.84% after the company's asset under management (AUM) under moratorium reduced to about 15.5% as of 30 June from 27% as of end April. The company's customer franchise stood at 43 million as of 30 June 2020, up by 16.5% or 0.5 million from 36.9 million as on 30 June 2019. New loans booked during Q1 FY21 were down by 76.7% to 1.7 million as compared to 7.3 million in Q1 FY20. Assets under management (AUM) increased by 7.8% to approximately Rs 1.38 lakh crore as of 30 June 2020 as compared to approximately Rs 1.28 lakh crore as of 30 June 2019. The company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.4% as of 30 June 2020, the NBFC said. With consolidated liquidity surplus of approximately Rs 17,600 crore as of 30 June 2020, the company's liquidity position remains very strong, it added. Bajaj Finance's deposit book grew 32.6% to Rs 20,000 crore in Q1 FY21 from Rs 15,084 crore in Q1 FY20.

Gujarat Pipavav Port surged 7.14%. 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).

Godrej Consumer Products fell 0.54%. The company on Monday (6 July) said that it expected to post mid single-digit sales growth in Q1 June 2020 in India, driven by higher volumes.

SH Kelkar and Company jumped 5.71% 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.

Suzlon Energy hit a lower circuit of 5% at Rs 5.33 after the company reported consolidated net loss of Rs 823.53 crore in Q4 March 2020, higher than net loss of Rs 292.60 crore in Q4 March 2019. Net sales declined 54.7% year-on-year (YoY) to Rs 643.39 crore in the March quarter. Pre-tax loss in Q4 March 2020 stood at Rs 828.78 crore as against a pre-tax loss of Rs 288.88 crore in Q4 March 2019. Current tax expense jumped 18.1% YoY to Rs 5.36 crore in the fourth quarter.

NBCC jumped 8.53%. The company's consolidated net profit fell 42.3% to Rs 78.98 crore on 16.8% decline in net sales to Rs 2568.73 crore in Q4 March 2020 over Q4 March 2019. Profit before tax in Q4 FY20 stood at Rs 99.57 crore, down by 53.2% from Rs 212.93 crore in Q4 FY19. Current tax expense declined 83.5% on a year-on-year (YoY) basis to Rs 16.76 crore in the fourth quarter.

Domestic shares advanced for the fourth straight session on Monday, tracking positive global cues. Strength in index majors Reliance Industries (RIL) (up 3.57%), TCS (up 2.91%) and HDFC Bank (up 2.68%) powered the indices.

The barometer S&P BSE Sensex rallied 465.86 points or 1.29% at 36,487.28. The Nifty 50 index surged 156.30 points or 1.47% at 10,763.65. Both these indices have risen about 4.50% in four sessions.

Investors' risk appetite strengthened after the media reported that India and China have begun a slight disengagement from the face-off sites in the Galwan Valley and Gogra-Hot Springs areas of eastern Ladakh. According to the reports, the Chinese People's Liberation Army (PLA) has possibly moved back by 1 to 1.5 km from the friction site in Galwan Valley. The PLA was seen removing tents and structures at Patrolling Point 14, reports added.

As per the proposed disengagement plan, the rival troops will gradually move back distances of 2.5 to 3 km in phases to de-escalate tensions at the face-off sites, which will later be followed by de-induction of huge military build-ups along the LAC.

The Nifty opened higher at 10,723.85 and advanced further as the session progressed. The index crossed 10,800 mark in afternoon trade, but profit booking pulled the index below that level. The Nifty is near its 200-day simple moving average placed at 10,881.60.

In the broader market, the BSE Mid-Cap index rose 1.27% and the BSE Small-Cap index gained 1.30%.

The market breadth was strong. On the BSE, 1,634 shares rose and 1,157 shares fell. A total of 189 shares were unchanged on the BSE.

COVID-19 update:

India reported 2,53,287 active cases of COVID-19 infection and 19,693 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,458,291 with 534,460 deaths so far, according to data from Johns Hopkins University.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.837% as compared with 5.845% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.6850, compared with its close of 74.66 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement rose 24 cents at $43.38 a barrel. The contract rose $1.11, or 2.64% to settle at $43.14 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia rallied on Monday as investors focused on the prospect of economic recovery and progress on potential coronavirus drugs, shrugging off concerns about a further acceleration of the pandemic.

US market was shut on Friday to observe the July Fourth holiday which falls on Saturday this year. The Dow Jones Futures were up 362 points, indicating a strong opening in US markets later today.

Buzzing Indian Segments:

Fertilizers stocks were in demand following the record fertilizer sale during April-June 2020. Rashtriya Chemicals and Fertilizers (up 5.06%), Chambal Fertilisers and Chemicals (up 4.5%), Fertilisers and Chemicals Travancore (up 4.28%), Gujarat State Fertilizers and Chemicals (up 3.68%), Deepak Fertilisers and Petrochemicals Corporation (up 2.97%), Zuari Global (up 2.89%) and Tata Chemicals (up 0.45%) advanced.

National Fertilizers jumped 20% after the company said fertiliser sales jumped 21.5% in Q1 June 2020 over Q1 June 2019.

During April-June 2020 POS sale of fertilizers to farmers was 111.61 lakh metric tonne (MT) which is 82.81% higher than the last year sale of 61.05 lakh MT during the same period.

The Nifty Auto index jumped 2.88% to 7,171.75. The index is up 6.74% in three sessions.

Mahindra & Mahindra (up 7.58%), Tata Motors (up 5.36%), Ashok Leyland (up 5.29%), TVS Motor Company (up 3.44%), Maruti Suzuki India (up 3.24%), Eicher Motors (up 1.43%), Hero MotoCorp (up 1.21%) and Escorts (up 0.87%) rose.

Force Motors fell 0.16%. The company produced 879 automobiles in June 2020 compared with 26 units in May 2020. The total production is down 59.2% in June 2020 compared with 2,153 units produced in the same month last year.

The company's domestic sales in June 2020 stood at 726 units as against 256 units sold in May 2020. Annually, the domestic auto sales are down 66% from 2,133 units sold in June 2019.

There were no exports in May 2020. The company exported 134 units in June 2020, up 74% from 77 units in June 2019.

Stocks in Spotlight:

ICICI Bank rose 0.22%. The bank's board will meet on 8 July 2020 to consider raising funds by issue of equity shares and/or other equity linked securities, through permissible modes. The board will also consider Q1 results.

HDFC Bank rose 2.68% after the private sector lender said its advances grew 21% while its deposits rose 25%, on year-on-year basis, as on 30 June 2020. CASA ratio stood at around 40% as of 30 June 2020, as compared to 39.7% on 30 June 2019 and 42.2% on 31 March 2020.

IndusInd Bank rose 1.79% after the bank said its net advances rose 4% to Rs 2,00,357 crore in Q1 June 2020 from Rs 1,93,520 crore from Q1 June 2019. Net advances contracted 3.1% in Q1 FY21 from Rs 2,06,783 crore in Q4 March 2020. Deposits stood at Rs 2,11,970 crore in Q1 FY21, up 6% from Rs 2,00,586 crore in Q1 FY20. On a quarter-on-quarter (QoQ) basis, deposits rose 4.9% in Q1 FY21 from Rs 2,02,040 crore in Q4 FY20.

Federal Bank gained 1.23% after total deposits grew 17% to Rs 1.54 lakh crore (provisional) as on 30 June 2020 as against Rs 1.32 lakh crore as on 30 June 2019. Gross advances advanced 8% to Rs 1.23 lakh crore (provisional) as on 30 June 2020 compared with Rs 1.13 lakh crore as on 30 June 2019.

HDFC fell 0.90%. The housing finance major announced that it assigned loans amounting to Rs 1,376 crore in Q1 June 2020, down 80.97% compared with Rs 7,230 crore in Q1 June 2019. All the loans assigned during the quarter were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between HDFC and HDFC Bank.

In Q1 June 2020, the profit on sale of investments was Rs 1,241 crore, lower than Rs 1,894 crore in Q1 June 2019. This was on account of the sale of 2.60 crore equity shares of HDFC Life Insurance Company (HDFC Life). As at 30 June 2020, HDFC's equity shareholding in HDFC Life stood at 50.1%. The Reserve Bank of India has mandated that HDFC reduce its shareholding in HDFC Life to 50% or below by 16 December 2020.

Gross income from dividend for Q1 June 2020 was Rs 298 crore, higher than Rs 1 crore in corresponding period of the previous year. To reiterate, in accordance with the directions stipulated by the Reserve Bank oflndia and Insurance Regulatory & Development Authority of India, the Corporation did not receive dividend from its investments in banks or insurance companies in Q1 June 2020.

Edelweiss Financial Services tumbled 3.97% after the NBFC reported a consolidated net loss of Rs 2,281.55 crore in Q4 March 2020 as against net profit of Rs 246.32 crore in Q4 March 2019. The NBFC's total income dropped 35.4% to Rs 1,965.87 crore in Q4 FY20 from Rs 3,041.20 crore in Q4 FY19. Edelweiss said its total impairment stood at Rs 2,549 crore in Q4 March 2020 based on revisions in the Expected Credit Loss (ECL) model and impact of COVID-19.

Kalpataru Power Transmission surged 9.82% after the company said it signed definitive agreements to sell Alipurduar Transmission to Adani Transmission for a total enterprise value of about Rs 1286 crore.

Sobha rose 4.69% after the realtor achieved new sales volume of 650,400 square feet valued at Rs 488 crore, with a total average realization of Rs 7,498 per square feet in Q1 June 2020. Sobha's share in total sales value is at Rs 393.10 crore.

Indian Energy Exchange (IEX) gained 1.60% after the electricity market at IEX witnessed a total trade of 4790 MU in June 2020, recording a 5% year-on-year increase. The total electricity market trade rose in June despite the national peak demand registering a 10% YoY decline during the month.

Prism Johnson hit an upper circuit of 10% to Rs 48.50 after the company on Monday (6 July) said its board approved divestment of its entire holding of 51% of the paid-up equity share capital in Raheja QBE General Insurance Company, a material subsidiary. The stake will be sold for an aggregate consideration of Rs 289.68 crore to QORQL, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications).

The company separately announced on Monday (6 July) that it has agreed to acquire an additional 35,00,000 equity shares at Rs 37 each, aggregating to Rs 12.95 crore, constituting 35% in the total paid-up equity share capital of Sanskar Ceramics. The company presently holds 15% of the paid-up equity share capital in Sanskar. Subsequent to the aforesaid investment, the shareholding of the company in Sanskar would increase to 50%. Sanskar is engaged in the business of manufacturing of ceramic tiles at Morbi in Gujarat.

Meanwhile, the firm said on Friday (4 July) that it continues to tightly manage its cash flows, keeping enough liquidity in hand and making sure that working capital limits remain majorly undrawn. The liquid investment balance at the end of Q1 June 2020 was more than Rs 470 crore. During Q1, the net debt was reduced by about Rs 275 crore at standalone level. Certain loan installment which were due in later part of FY 20-21 and FY 21-22 were prepaid during the last quarter. The company added that it continues to explore its strategy of pre-payment/refinancing of loans well in advance. These measures would enable it to optimize interest cost and take care of loan obligations upto March 2022.

Domestic shares ended with modest gains after a volatile session on Friday. IT shares were in demand while banks corrected. Shares across Asia advanced on robust US payrolls data and a brisk pickup in Chinese service sector activity. However, a surge in coronavirus cases capped strong gains.

The barometer S&P BSE Sensex rose 177.72 points or 0.5% at 36,021.42. The Nifty 50 index jumped 55.65 points or 0.53% at 10,607.35. Both these indices rose about 3% in the past three sessions.

The Nifty opened higher at 10,614.95, but pared gains in morning trade. The index hovered around 10,600 mark for most part of the session. Selling in afternoon session dragged Nifty to the day's low level of 10,562.65. Buying in last hour, however, boosted the index above 10,600 mark.

In the broader market, the S&P BSE Mid-Cap index rose 0.56% while the S&P BSE Small-Cap index gained 0.47%.

The market breadth was almost even. On the BSE, 1,356 shares rose and 1,377 shares fell. A total of 156 shares were unchanged.

Index heavyweight Reliance Industries (RIL) rose 1.53% after the company said Intel Capital will invest Rs 1,894.50 crore in Jio Platforms for a 0.39% equity stake. Intel Capital joins the list of firms who have recently invested in Jio Platforms, taking the total investment amount to Rs 1,17,588.45 crore.

Weakness in HDFC Bank (down 1.42%), Bajaj Finance (down 1.24%), ICICI Bank (down 0.47%) and HDFC (down 0.18%) weighed on indices.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 1,08,73,186 far with 5,21,337 deaths. India reported 2,27,439 active cases of COVID-19 infection and 18,213 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.848% compared with previous closing of 5.841% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 74.66 compared with its previous closing 75.045.

In the commodities market, Brent crude for September 2020 settlement fell 69 cents to $42.68 a barrel. The contract rose 2.64% to settle at $43.14 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement fell 0.31% to Rs 48,008.

Global Markets:

After initial strength, European indices slipped into negative terrain as concern over a spike in U.S. coronavirus infections tempered the optimism arising from upbeat economic data out of the US, China and the euro zone.

German car sales reportedly plunged 40% in June to a 30-year low. Final IHS Markit services and composite PMI (purchasing managers' index) readings Friday confirmed that the slump in business activity caused by the coronavirus pandemic eased in June as countries began to reopen their economies. The composite reading came in at 48.5 in June, a sharp rise from May's 31.9 and close to the 50 mark, which separates expansion from contraction.

Asian markets ended higher following the overnight gains on Wall Street after a report by the US Labor Department showed another record spike in employment in the month of June 2020.

Meanwhile, China's services sector grew at its fastest pace in over a decade in June 2020 with the Caixin/Markit services Purchasing Manager's Index (PMI) coming in at 58.4 for the month. The 50 level in PMI readings separates growth from contraction on a monthly basis.

The US stock market finished session higher on Thursday, 2 July 2020, with the Nasdaq reached an all-time closing high, as bullish investors took heart from better than expected June 2020 employment report which provided assurance that the U.S. economic recovery was well under way. However, market gains capped amid concerns about rising coronavirus cases.

US nonfarm payrolls surged by 4.8 million jobs in June, thanks to rises in the hard-hit hospitality sectors. A separate report on jobless claims, the most timely data on employment, showed initial claims for state unemployment benefits fell just 55,000 to a seasonally adjusted 1.427 million for the week ended June 27. The number of people receiving benefits after an initial week of aid rose 59,000 to 19.290 million in the week ending Jun. 20.

However, US daily COVID-19 cases topped 50,000 for the first time with increases in major states including Florida, Texas and California. On Thursday, Florida reported a record-shattering 10,000 new cases of the disease.

US financial markets will be closed on Friday to observe the July Fourth holiday which falls on Saturday this year.

Buzzing Indian Segments:

The Nifty IT index rose 1.08% to 15,285.90. The index has risen 3.76% in two sessions.

Mphasis (up 1.99%), HCL Technologies (up 1.61%), Tech Mahindra (up 1.11%), Mindtree (up 0.86%), Infosys (up 0.83%) and Oracle Financial Services Software (up 0.41%) advanced.

TCS rose 1.88%. The IT giant's board will consider Q1 results on 9 July 2020.

The Nifty Realty index rose 1.02% to 203.10. The index fell 9.13% in the past seven sessions.

Indiabulls Real Estate (up 4.93%), Godrej Properties (up 2.97%), Phoenix Mills (up 2.21%), Sunteck Realty (up 2.04%), Prestige Estates (up 1.44%), Brigade Enterprises (up 0.38%) and Oberoi Realty (up 0.14%) advanced.

Stocks in Spotlight:

HDFC Life Insurance Company (up 4.42%) will replace Vedanta (up 0.05%) in the benchmark Nifty 50 index from 31 July 2020. Vedanta has been replaced from 11 indices, including the Nifty 50, Nifty 500, Nifty 100, Nifty Large Midcap 250 and Nifty 200, among others. The replacement comes after Vedanta initiated delisting process from bourses last month.

Meanwhile, SBI Cards and Payments (up 3.18%) will replace HDFC Life Insurance in Nifty Next 50 index.

Motherson Sumi Systems (MSSL) tumbled 5.35%. The company's board approved a group reorganization plan, which entails demerger of Domestic Wiring Harness (DWH) business from MSSL into a new company which is in the process of being incorporated as a wholly owned subsidiary of MSSL (New Co.) and subsequent merger of Samvardhana Motherson International (SAMIL) into MSSL to consolidate 100% shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in SAMIL under MSSL.

Cadila Healthcare rose 0.83% after the pharmaceutical major said its vaccine for COVID-19 has successfully completed pre-clinical development and received permission to initiate human clinical trials.

Muthoot Finance rose 3.32% after the company said its board will meet on 18 July 2020 to consider a stock split. The board will also seek shareholders' approval to increase its borrowing powers to Rs 75,000 crore from existing Rs 50,000 crore.

JSW Steel fell 1.83% after the company's crude steel production fell 30.2% to 2.96 million tons (MnT) in Q1 FY21 from 4.24 MnT in Q1 FY20. The decline was primarily due to a fall in production at Vijayanagar Works after certain employees tested COVID-19 positive. The average capacity utilisation dropped to 76% in June 2020. The operations are now stabilising with reduced employee strength, the steel maker said.

Affle (India) hit an upper circuit of 5% at Rs 1,523.90 after the company said it signed a definitive agreement on 2 July 2020 to acquire 8% stake in Singapore's OSLabs for $2.86 million. The acquisition is likely to complete by 25 July 2020.

JB Chemicals & Pharmaceuticals rose 0.37% after US private equity giant KKR on 2 July 2020 agreed to acquire about 54% stake in the Mumbai-based drug manufacturer for Rs 3,109 crore. Additionally, KKR launched an open offer to acquire an additional 26% stake or 2 crore full paid-up equity shares of the drug maker at Rs 745 per share. If successful the open offer will add another Rs 1,496 crore to the deal, taking the total value of the deal to Rs 4,605 crore.

Domestic shares rallied on Thursday, mirroring positive global markets as increasing optimism for a safe and effective COVID-19 vaccine eased concerns about a second wave of infections. US-based Pfizer Inc said a COVID-19 vaccine being developed with German biotech firm BioNTech showed promise and was found to be well-tolerated in early-stage human trials.

The barometer S&P BSE Sensex rallied 429.25 points or 1.21% at 35,843.70. The Nifty 50 index jumped 121.65 points or 1.17% at 10,551.70.

HDFC (up 2.95%) and Reliance Industries (up 1.30%) were major index movers.

The Nifty opened higher at 10,493.05 and firmed up as the session progressed. The index crossed 10,550 level in afternoon trade and hit the day's high of 10,598.20, before profit booking set in in late trade.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 5.74% to 26.50.

In the broader market, the BSE Mid-Cap index rose 1.04% and the BSE Small-Cap index gained 0.92%. Both these indices lagged the Sensex.

The market breadth was strong. On the BSE, 1,719 shares rose and 1,044 shares fell. A total of 127 shares were unchanged.

COVID-19 update:

Total COVID-19 confirmed cases worldwide stood at 1,06,95,608 far with 5,16,255 deaths. India reported 2,26,947 active cases of COVID-19 infection and 17,834 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 5.841% as compared with 5.838% 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 75.0450, compared with its close of 75.6025 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement rose 20 cents at $42.23 a barrel. The contract rose 76 cents, or 1.84% to settle at $42.03 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia jumped on Thursday, taking cues from the overnight rally on Wall Street as hopes for development of a coronavirus vaccine offset some of the concerns about rising coronavirus cases in the United States.

Investors continued to monitor the escalating tension between American and Beijing, over the Hong Kong issue. As per media reports, China said it will announce reciprocal curbs on U.S. media outlets in the country. The comment reportedly comes after the United States said in June it would start treating another four major Chinese media outlets as foreign embassies, following similar moves on other outlets earlier in the year, in a move likely to further sour fraught ties between the world's top two economies, media reports said.

The US stock market finished session mostly higher on Wednesday, 1 July 2020, with the Nasdaq close at a record high, as bullish investors took heart from cheering economic data and news of a potential coronavirus vaccine.

The ADP National Employment Report showed the nonfarm private sector created 2.4 million jobs in June, with 70% of new jobs in the leisure, hospitality, trade and construction industries. Meanwhile, data from the Institute for Supply Management (ISM) showed index of US factory activity jumped to a reading of 52.6 last month from 43.1 in May, ending three straight months of contraction, or readings below 50.

Buzzing Indian Segments:

The Nifty Auto index rose 2.81% to 6,907.10. Mahindra & Mahindra (up 6.05%), Hero MotoCorp (up 4.93%), Ashok Leyland (up 1.87%) and Escorts (up 0.81%) advanced.

Maruti Suzuki India rose 2.58%. The car major on Thursday announced the launch of its vehicle lease subscription services for individual customers - Maruti Suzuki Subscribe. Through this, the company would offer cars for subscription as a pilot project in Gurugram and Bengaluru. The subscription will be initially available on Swift, Dzire, Vitara Brezza and Ertiga from Maruti Suzuki ARENA Channel and Baleno, Ciaz and XL6 from NEXA Channel. Maruti Suzuki has tied up with ORIX Auto Infrastructure Services, a subsidiary of ORIX Corporation, Japan, to launch Maruti Suzuki Subscribe for the Indian market.

Tata Motors rose 0.84%. The company's total domestic automobile sales slumped 82% to 23,845 units in Q1 June 2020 as against 1.31 lakh units in Q1 June 2019.Sales were impacted by a sharp decline in the production of commercial as well as passenger vehicles owing to the lockdown and subdued market demand. Total commercial vehicles (CV) sales were down 90% to 10,476 units while the total passenger vehicles (PV) sales slumped 61% to 14,571 units in Q1 FY21 over Q1 FY20.

Bajaj Auto rose 0.93%. The auto major reported 31% decline in total vehicles sales to 2.78 lakh units in June 2020 as against 4.04 lakh units in June 2019. The company's total vehicle sales surged 119% in June from 1.27 lakh units registered in May 2020. Due to nationwide lockdown, the company's sales were disrupted in April and May this year. In April, there were no sales in the domestic market, but the company exported 37,878 units.

TVS Motor Company rose 0.31%. The company recorded over three-fold increase in June 2020 sales to 198,387 units from 58,906 units sold in the month of May 2020. Its June sales, however, are lower by 33.22% as compared to 297,102 units sold in the same period last year. Total exports were 53,123 units in the month of June 2020, down by 24% from 69,900 units in June 2019. TVS Motor said it is witnessing a positive uptake in both domestic retail as well as exports. The company faced supply chain constraints in June; however, it has undertaken various countermeasures, some of which have started yielding results in June itself. The company is expecting to overcome these in the month of July.

The Nifty IT index rose 2.65% to 15,122.55. HCL Technologies (up 3.33%), Infosys (up 3.25%), TCS (up 3.14%), Tech Mahindra (up 2.94%), Wipro (up 2.22%), Mindtree (up 1.22%), Hexaware Technologies (up 0.76%) and Persistent Systems (up 0.57%) advanced.

Shares of companies whose fortunes are linked to orders from Indian Railways advanced after India's Railway Ministry began the formal process to allow a private company to run trains on 109 routes.

Texmaco Rail (up 12.86%), Hind Rectifiers (up 4.98%), Titagarh Wagons (up 4.95%), RITES (up 4.24%), IRCON International (up 3.85%), IRCTC (up 3.56%) and Bharat Heavy Electricals (up 1.80%) advanced.

Stocks in Spotlight:

Pfizer jumped 5.15% after the company's US-based parent reported positive preliminary results from a joint project to develop a coronavirus vaccine. An early trial of an experimental coronavirus vaccine from US-based Pfizer and Germany's BioNTech showed it's safe and prompted patients to produce antibodies against the new virus, keeping it in the lead pack for a pandemic shot. The preliminary data come from a so-called phase 1/2 trial that aimed to show the vaccine is not toxic and triggers an immune system response to prepare the body to fight off the virus.

Axis Bank fell 2.24%. The private lender said its board approved raising upto Rs 15,000 crore through issuance of various instruments. The move comes days after Axis Bank's issuer credit rating was downgraded to junk or BB+ by rating agency S&P Global.

Tata Power spurted 8.37% to Rs 49.85. The board of directors of the company approved issuance of 49,05,66,037 equity shares through a preferential issue to the promoter, Tata Sons, at Rs 53 per equity share for an aggregate sum of Rs 2,600 crore, subject to shareholder approvals.

The board has also given in-principle approval for setting up of Infrastructure Investment Trust (InvIT) for the company's renewable business on terms and conditions to be discussed with potential investors.

Coal India shed 0.19% after provisional coal production dropped 12.8% to 39.20 million tonnes (MT) while provisional coal offtake shrunk by 15% to 41.61 MT in June 2020 over June 2019.

Jindal Steel & Power (JSPL) gained 0.13%. The company recorded a 12% growth in sales volumes to 1.56 million tonnes (MT) and 8% rise in standalone steel (including pig iron) production to 1.67 MT in Q1 June 2020 over Q4 March 2020 (Q-o-Q). The export sales contributed to 58% of total sales volumes in Q1 FY21. The company's consolidated sales rose by 7% to 2.07 MT (Q-o-Q) during Q1 FY21. Consolidated production fell 4% (Q-o-Q) to 2.03 MT in Q1 FY21.

Dixon Technologies (India) rose 1.24% after the company said it has entered into new line of business to manufacture set top boxes. The total investment in the new business will be about Rs 40-50 lakh and the company expects a revenue of Rs 100-150 crore in fiscal 2021, Dixon Technologies (India) announced post trading hours yesterday, 1 July 2020.

Eveready Industries India gained 0.06% after consolidated net profit surged to Rs 63.07 crore in Q4 March 2020, higher than net profit of Rs 4.54 crore in Q4 March 2019. Consolidated net sales declined 32.4% to Rs 224.08 crore in Q4 FY20 over Q4 FY19.

The company reported exceptional gain of Rs 62.03 crore on sale of land at Hyderabad. The profitability was aided by rise in gross margin in the core segments of batteries and flashlights and improvement in operating margin due to additional cost savings measures. The discontinuance of the packaged tea business further helped the company in improving margins and releasing working capital, Eveready Industries said in a regulatory filing.

Domestic benchmarks ended with strong gains on Wednesday. Positive Asian cues and recovering domestic macro data cheered investors. Banks stocks rallied while pharma stocks extended losses. The barometer S&P BSE Sensex rallied 498.65 points or 1.43% at 35,414.45. The Nifty 50 index jumped 127.95 points or 1.24% at 10,430.05.

Besides banks shares, Reliance Industries (up 2.03%), HDFC (up 4.59%) and ITC (up 4.16%) were major index movers.

The Nifty opened higher at 10,323.80 and scaled 10,400 mark in afternoon session. The index continued to trade sideways with decent gains in mid-afternoon session before closing near 10,420 level.

In the broader market, the BSE Mid-Cap index rose 0.18% and the BSE Small-Cap index gained 0.39%. Both these indices underperformed the Sensex.

The market breadth was positive. On the BSE, 1504 shares rose and 1277 shares fell. A total of 125 shares were unchanged.

COVID-19 update:

Total COVID-19 confirmed cases worldwide stood at 1,04,77,554 far with 5,11,300 deaths. India reported 2,20,114 active cases of COVID-19 infection and 17,400 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The seasonally adjusted IHS Markit India Manufacturing PMI surged to 47.2 in June from 30.8 in May. Despite the rise, the latest reading pointed to a third successive monthly decline in the health of the manufacturing sector, albeit one that was far softer than registered in April and May.

Goods and service tax (GST) collections for June 2020 clocked Rs 90,917 crore at gross levels, 9% lower than the same month last year, the department of revenue said Wednesday. The collections are higher than those recorded in April and May - the peak months of the nationwide lockdown - where GST collection for April was Rs 32,294 crore and Rs 62,009 crore for May.

The output of eight core industries declined at slower pace of 23.4% in May 2020 compared with 37% (provisional) dip in previous month of April 2020. Its cumulative growth during April to May 2020-21 was 30.0%.

India's current account balance recorded a marginal surplus of $0.6 billion (0.1% of GDP) in Q4 of 2019-20 as against a deficit of $4.6 billion (0.7% of GDP) in Q4 of 2018-19 and $2.6 billion (0.4% of GDP) in the preceding quarter, i.e., Q3 of 2019-20.

The surplus in the current account in Q4 of 2019-20 was primarily on account of a lower trade deficit at $35 billion and a sharp rise in net invisible receipts at $35.6 billion as compared with the corresponding period of last year.

India's external debt for the quarter ended March 2020 rose to $558.5 billion on account of currency valuation effect, commercial borrowings and non-resident Indian (NRI) deposits, according to the data released by the Reserve Bank of India on Tuesday. The external debt during the March quarter rose by 2.8% or $15.4 billion on a year-on-year (YoY) basis.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.838% as compared with 5.888% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.6025, compared with its close of 75.51 during the previous trading session.

In the commodities market, Brent crude for September 2020 settlement rose $1.14 at $42.41 a barrel. The contract fell 56 cents, or 1.34% to settle at $41.15 a barrel in the previous trading session.

Foreign Markets:

The US Dow Jones futures were down 239 points, indicating a weak opening of US stock market later today. European markets reversed early gains and turned negative.

Most Asian stocks ended higher as improving economic data from China offset by worries about surging coronavirus cases in the United States.

China's Caixin/Markit manufacturing PMI in June came in at 51.2, against previous month's reading of 50.7. PMI readings above 50 signify expansion, while those below that indicate contraction.

The US stock market finished session higher on Tuesday (30 June), as the investors risk sentiments boosted up with better-than-expected domestic economic data which helped to offset concerns over the health of the global economy from the coronavirus pandemic.

The Conference Board released a report showed a bigger than expected improvement in consumer confidence in the month of June. The Conference Board said its consumer confidence index jumped to 98.1 in June from a downwardly revised 85.9 in May.

Stocks gains were also supported by the testimony of the Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin's to the House Financial Services Committee regarding the response to the coronavirus pandemic. Mnuchin said the Treasury and Fed were looking at extending the Fed's established 11 emergency lending facilities to include asset-based lending markets, but also reiterated that additional types of COVID-19 aid likely will need to be addressed by Congress under the next phase of stimulus.

Powell emphasized that the 'overriding goal' of the central bank's facilities is to help get the roughly 25 million workers who lost jobs during the pandemic back to work, while also warning that a second wave of COVID-19 infections could undermine consumer confidence again.

Buzzing Indian Segments:

The Nifty Bank index rose 2.84% to 21,977.60. Axis Bank (up 6.34%), Bank of Baroda (up 5.76%), Punjab National Bank (up 4.89%), Federal Bank (up 4.31%), Indusind Bank (up 3.66%), SBI (up 3.45%), ICICI Bank (up 3.12%), IDFC First Bank (up 2.72%), Bandhan Bank (up 2.22%) and HDFC Bank (up 1.28%) advanced.

The Nifty Pharma index fell 1.02% to 9,882.85. The index has fallen 3.04% in four sessions.

Cipla (down 1.88%), Divis Laboratories (down 1.73%), Torrent Pharmaceuticals (down 1.31%), Cadila Healthcare (down 1.23%), Sun Pharmaceutical Industries (down 1.06%), Dr. Reddy's Laboratories (down 0.76%), Lupin (down 0.67%), Biocon (down 0.44%) and Alkem Laboratories (down 0.35%) declined.

June Auto Sales:

Maruti Suzuki India fell 0.69%. The car manufacturer said its total sales slumped 54% to 57,428 units in June 2020 as against 124,708 units in June 2019. Total domestic sales tanked 53.7% to 53,139 units in June 2020 from 114,861 units in June 2019. Exports dropped 56.64% to 4,289 units in June 2020 from 9,847 units in June 2019. The car major's total sales jumped 210% in June 2020 from 18,539 units registered in May 2020.

Hero MotoCorp fell 0.05%. The two wheeler manufacturer sold 450,744 two-wheelers in June 2020, a record sequential growth of four times over the 112,682 units dispatched in May 2020. The company said the sales figure has reached 90% of pre-covid sales, which signals positive sentiments & revival of consumer demand. Total two-wheeler sales in June 2020 fell 26.89% compared with 6,16,526 units sold in June 2019.

Eicher Motors rose 0.31%. The auto maker on Wednesday (1 July) announced that its unlisted subsidiary, VE Commercial Vehicles (VECV), reported 70.3% slump in total sales to 1358 units in June 2020 over June 2019. VECV's total domestic sales slumped 75.4% YoY to 1016 units last month. Total exports fell 16.4% to 305 units during the period under review. Sequentially, VECV reported 97.96% surge in total sales in June from 686 units sold in May 2020. VECV reported weak sales in May amid nationwide lockdown.

Mahindra & Mahindra (M&M) fell 2.18%. The company's total sales surged to 19,358 units in June 2020 from 9,560 units sold in May 2020. However, M&M's total sales have fallen 55% in June compared with 42,547 units sold in June 2019. While total domestic sales declined 53% YoY to 18,505 units, total exports fell 72% YoY 853 units during the month.

Escorts fell 0.64% after the company's total tractor sales rose 21.1% to 10,851 units in June 2020 over June 2019. Total tractor sales spurted 64.6% month-on-month (MoM) in June 2020 compared with 6,594 units in May 2020. Escorts' total domestic tractor sales stood at 10,623 units (up 22.8% YoY) and total exports were at 228 units (down 26.9% YoY) in June 2020.

Earnings Impact:

ONGC fell 1.11% after the PSU company posted a standalone net loss of Rs 3,098.26 crore in the fourth quarter. The company had reported a net profit of Rs 4,239.50 in the same period last year. Net sales declined by 19.8% to Rs 21,456.20 crore in Q4 FY20 over Q4 FY19. ONGC's crude oil price realization from its nominated fields fell 20.9% YoY to $49.01 per barrel while the price realization from the joint venture fields was down 19.4% YoY to $49.39 per barrel during the March quarter. Gas price also fell 3.9% to $3.23 per million British thermal unit (mmbtu) in Q4 FY20. The Company has recognized an Exceptional Item towards impairment loss of Rs. 4,899 crore in Q4 FY'20 to factor into estimated future crude oil and natural gas prices. This has adversely impacted PAT for Q4 FY'20 and FY'20 as compared to last year, ONGC said.

Vodafone Idea declined 4.33% after the company recorded a consolidated net loss of Rs 11,643.50 crore in Q4 March 2020, higher than net loss of Rs 4,881.90 crore in Q4 March 2019. Consolidated revenue from operations fell 0.17% to Rs 11,754.20 crore in Q4 FY20 over Rs 11,775 crore in Q4 FY19. Pre-tax loss was at Rs 11,742.60 crore in Q4 FY20 as against Rs 6,758.90 crore in Q4 FY19. The subscriber base declined to 291 million in Q4 FY20 from 304 million in Q3 FY20. Subscriber churn remained stable in Q4 FY20 at 3.3%. Average revenue per user (ARPU) for Q4 FY20 improved to Rs 121 from Rs 109 in Q3 FY20, driven by the prepaid tariff hike effective from December 2019.

On the adjusted gross revenue (AGR) matter, the department of telecommunications (DoT) has proposed to stagger the balance of AGR payments over 20 years. The next Supreme Court hearing is scheduled for the third week of July. The DoT wants the company to pay Rs 58,254 crore as AGR dues. The company claims that amount to be Rs 45,960 crore. The company wants a 20-year timeframe to pay its dues that it claims now stand at Rs 39,106 crore after it paid Rs 6,854 crore during the March quarter.

RITES jumped 4.37%. The company posted a 4.29% drop in consolidated net profit to Rs 143.93 crore on a 22.17% drop in revenue to Rs 614.24 crore in Q4 FY20 as compared to Q4 FY19. Commenting on the outlook, Rajeev Mehrotra, the company's chairman and managing director, said that some uncertainties have emerged in recent times due to Covid-19, which may impact the business operations in FY21 but sufficient order book, diversified business segments and opportunities in infrastructure sector at domestic level as well as abroad are expected to help in quick recovery and future business growth.