The broader market rallied. The S&P BSE Mid-Cap index rose 1.49% while the S&P BSE Small-Cap index gained 2.28%.

The market breadth was quite strong. On the BSE, shares 1,956 rose and 492 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.

Buzzing Index:

The Nifty Realty index gained 1,87% to 201.05, rising after yesterday's decline. The index has added nearly 23% in nine trading sessions.

Sunteck Realty (up 8.24%), Sobha (up 7.86%), The Phoenix Mills (up 6.13%), Brigade Enterprises (up 4%), Indiabulls Real Estate (up 3.4%), Prestige Estate (up 2.65%), Mahindra Lifespace Developers (up 2.45%) and Godrej Properties (up1.4%) were top gainers in realty segment.

Stocks in Spotlight:

RITES jumped 3.09% after the company's arm secured mandate for 3,000 megawatts solar power plants' installation. The project will be divided into three phases of one GW each and the entire installation is expected to be completed by 2022-23

Hexaware Technologies hit an upper circuit of 20% at Rs 311.30 after the company said its board will meet on on 12 June 2020 to consider a proposal to voluntarily delist equity shares of the company. As on 31 March 2020, the promoter HT Global IT Solutions Holding held 62.4% stake in the company while the public shareholders held 37.6% stake. As a part of the delisting offer, HT Global IT Solutions Company, the promoter has given an indicative offer of Rs 285 per share, which is a 9.8% premium on the closing price of the shares on 4 June. The floor price will be separately informed to the company in due course.

Cadila Healthcare were down 0.23%. The drug maker on Friday (5 June) announced that it has received a final approval from the US drug regulator to market Atazanavir capsules in multiple strengths. Atanazavir, an antiretroviral drug, is used to treat infection of the Human Immunodeficiency Virus (HIV). It is used in combination with other antiretroviral drugs to treat HIV-1 infection. The company will manufacture the drug at its facility in Ahmedabad.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.836% compared with previous closing of 5.796% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.58 compared with its previous closing 75.5750.

In the commodities market, Brent crude for August 2020 settlement was up 71 cents to $40.71 a barrel. The contract rose 0.5% to settle at $39.99 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement fell 0.76% to Rs 46,340.

Benchmark indices firmed up further and traded near the day's high in afternoon trade. The Nifty crossed 10,100 level. Gradual lifting of lockdown measures and expectations of further government stimulus boosted investor confidence.

At 13:20 IST, the barometer index, the S&P BSE Sensex jumped 263.90 points or 0.78% at 34,244.60. The Nifty 50 index soared 99.20 points or 0.99% at 10,128.30.

The broader market rallied. The S&P BSE Mid-Cap index rose 1.48%. The S&P BSE Small-Cap index gained 2.32%.

The market breadth was quite strong. On the BSE, shares 1,907 rose and 502 shares fell. A total of 127 shares were unchanged. In Nifty 50 index, 41 stocks advanced while 8 stocks declined.

Overseas investors have been strong buyers of domestic equities in the past one week. Foreign portfolio investors (FPIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 847.31 crore in the Indian equity market on 4 June 2020, provisional data showed.

Unlock 1:

Union Ministry of Home Affairs (MHA) issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from 8 June. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner. The lockdown was first enforced in March to contain the spread of COVID-19.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 66,40,960 far with 3,91,261 deaths. India reported 1,10,960 active cases of COVID-19 infection and 6,348 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

Tata Motors (up 8.98%), Bharti Infratel (up 7.74%), Tata Steel (up 6.30%), Hindalco Industries (up 4.91%) and UPL (up 4.74%) were top gainers in Nifty 50 index.

TCS (down 1.94%), Bajaj Auto (down 1.51%), Hindustan Unilever (down 1.36%), Vedanta (down 0.86%) and Cipla (down 0.64%) were top losers in Nifty 50 index.

SBI was up 2.99% ahead of Q4 results.

Aditya Birla Capital (up 4.26%), Alkem Laboratories (up 1.24%), Exide Industries (down 0.09%), Greaves Cotton (up 2.51%), Gujarat Gas (up 0.56%), Infibeam Avenues (up 3%), Jyothy Labs (up 4.37%), RPG Life Sciences (up 1.94%), SMS Pharmaceuticals (up 0.34%), Sumitomo Chemical India (up 3.19%) and Timken India (up 0.81%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

SRF skid 3.25% after consolidated net profit slipped 2.7% to Rs 185.75 crore on a 4.2% fall in net sales to Rs 1,820.28 crore in Q4 March 2020 over Q4 March 2019. On the segmental revenue front, SRF's chemicals business earnings came in at Rs 840 crore (up 5% Y-o-Y), packaging films business' revenue was at Rs 623 crore (down 3% Y-o-Y), technical textiles business income stood at Rs 317 crore (down 22% Y-o-Y) and other businesses earnings were recorded at Rs 58 crore (down 19% Y-o-Y).

Realty major DLF fell 0.13% after the company reported a consolidated net loss of Rs 1,857.76 crore in Q4 March 2020 as compared to a consolidated net profit of Rs 436.56 crore reported in Q4 FY19. Net sales fell 32.2% to Rs 1,694.20 crore in Q4 March 2020 over Q4 March 2019. “There was a one-time DTA (Deferred Tax Asset) reversal of Rs 1,916 crore, on adoption of lower-tax rate”, the company said in a statement. In view of COVID-19, after a thorough analysis and following a prudent approach, the company has undertaken certain provisions to reflect changes in the carrying value of some of its assets and investments. This has led to a one-time, exceptional provision (net of taxes) of Rs 272 crore in Q4 FY20.

PI Industries rose 1.77% to Rs 1,585 on BSE. The company's consolidated net profit dropped 11.9% to Rs 110.70 crore on a 6.3% rise in net sales to Rs 855.20 crore in Q4 March 2020 over Q4 March 2019. EBITDA rose 7% Y-o-Y to Rs 187 crore in Q4 FY20. EBITDA margin was flat at 22% during the quarter despite upsurge in raw material prices on Chinese imports amid initial COVID-19 impact.

Stocks in Spotlight:

Index heavyweight Reliance Industries (RIL) rose 1.08% after the company on Friday announced that Abu Dhabi-based Mubadala Investment Company, is said to invest Rs 9,093.60 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Mubadala's investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 87,655.35 crore from growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

Larsen & Toubro (L&T) gained 1.24% after L&T Construction secured a 'large' contract for its heavy civil infrastructure business from the civic body of Telangana. As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 crore and 5,000 crore. L&T will announce Q4 results today, 5 June.

Global Markets:

European markets opened higher while Asian stocks traded higher on Friday as investors await the U.S. nonfarm payrolls report expected later in the day. The investors remained cautious as they watched developments arising out of US-China tensions and the possibility of second waves of coronavirus infections.

The European Central Bank (ECB) has boosted its pandemic emergency support program by an unexpectedly large 600 billion euros ($672 billion) to a total of 1.35 trillion euros ($1.5 trillion) through a bond buying program called Pandemic Emergency Purchase Programme (PEPP), in an effort to keep affordable credit flowing to the economy during the steep downturn caused by the virus outbreak.

The Central Bank also said it would extend the program until June 2021, and reinvest maturing PEPP securities until at least the end of 2022. ECB President Christine Lagarde has called it an unprecedented contraction in the euro zone economy.

The US equity market finished session lower on Thursday, 04 June 2020, as investors hit the pause button on caution as Wall Street grappled with disappointing jobs data and a late-day sell-off in tech shares.

The Labor Department released a report on Thursday showed initial jobless claims tumbled to 1.877 million in the week ended 30 May 2020, a decrease of 2,49,000 from the previous week's revised level of 2.126 million. Further, report also showed continuing claims - which reflect the aggregate number of Americans receiving unemployment benefits- jumped by 6,49,000 from the previous week to 21.487 million.

The US trade deficit widened to $49.4 billion in April 2020 from a revised $42.3 billion in March 2020 after a nosedive in the value of exports outpaced a slump in the value of imports.

The benchmark indices traded with modest gains in early afternoon trade. Gradual lifting of lockdown measures and expectations of further government stimulus supported investor confidence. At 12:21 IST, the barometer index, the S&P BSE Sensex, was up 169.87 points or 0.5% at 34,150.57. The Nifty 50 index added 77.15 points or 0.77% at 10,106.25.

The broader market rallied. The S&P BSE Mid-Cap index gained 1.12% while the S&P BSE Small-Cap index rose 2.01%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1811 shares rose and 488 shares fell. A total of 129 shares were unchanged. In the Nifty 50 index, 36 shares advanced while 14 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 847.31 crore in the Indian equity market on 4 June, provisional data showed.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.21% to 29.03. The Nifty June 2020 futures were trading at 10,107.95, a premium of 1.7 points compared with the spot at 10,106.25.

On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 18.08 lakh contracts at the 10,000 strike price. Maximum put OI of 34.74 lakh contracts was seen at 9,000 strike price.

Unlock 1:

Union Ministry of Home Affairs (MHA) issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from 8 June. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner.

The lockdown was first enforced in March to contain the spread of COVID-19.

Covid-19 Update:

Total COVID-19 confirmed cases worldwide stood at 66,39,228 far with 3,91,261 deaths. India reported 1,10,960 active cases of COVID-19 infection and 6,075 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Bank index added 1.57% to 20,711.45, led by the gains in public sector banks.

Among the public sector banks, IDBI Bank (up 9.44%), Punjab National Bank (up 3.06%), Bank of Baroda (up 2.92%), Punjab & Sind Bank (up 2.91%), Canara Bank (up 2.31%), Indian Bank (up 1.69%), Central Bank of India (up 1.63%), Bank of India (up 1.6%), United Bank of India (up 1.56%), Union Bank of India (up 1.54%), Bank of Maharashtra (up 1.17%), UCO Bank (up 0.73%), Allahabad Bank (up 0.13%) edged higher.

State Bank of India (SBI) rose 2.87% ahead of Q4 results later in the day.

Among the private banks, Federal Bank (up 2.74%), RBL Bank (up 2.12%), Bandhan Bank (up 1.99%), HDFC Bank (up 1.43%), IndusInd Bank (up 0.99%), Yes Bank (up 0.72%), ICICI Bank (up 0.42%) and Axis Bank (up 0.3%) advanced.

Earnings Impact:

SRF declined 2.79% to Rs 3,685.45 after consolidated net profit slipped 2.7% to Rs 185.75 crore on 4.2% fall in net sales to Rs 1,820.28 crore in Q4 March 2020 over Q4 March 2019. On the segmental revenue front, SRF's chemicals business earnings came in at Rs 840 crore (up 5% YoY), packaging films business' revenue was at Rs 623 crore (down 3% YoY), technical textiles business income stood at Rs 317 crore (down 22% YoY) and other businesses earnings were recorded at Rs 58 crore (down 19% YoY).

PI Industries rose 2% to Rs 1588.55. The chemical company's consolidated net profit dropped 11.9% to Rs 110.70 crore on a 6.3% rise in net sales to Rs 855.20 crore in Q4 March 2020 over Q4 March 2019. EBITDA rose 7% YoY to Rs 187 crore in Q4 FY20. EBITDA margin was flat at 22% during the quarter despite upsurge in raw material prices on Chinese imports amid initial COVID-19 impact.

The Sensex and the Nifty firmed up once again in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 131.38 points or 0.39% at 34,112.08. The Nifty 50 index added 62.05 points or 0.62% at 10,091.15.

In the broader market, the S&P BSE Mid-Cap index gained 0.85% while the S&P BSE Small-Cap index rose 1.63%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1698 shares rose and 499 shares fell. A total of 114 shares were unchanged. In the Nifty 50 index, 36 shares advanced while 14 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 847.31 crore in the Indian equity market on 4 June, provisional data showed.

Stocks in Spotlight:

Index heavyweight Reliance Industries (RIL) rose 1.33% to Rs 1601 after the company on Friday announced that Abu Dhabi-based Mubadala Investment Company, will invest Rs 9,093.60 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Mubadala's investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 87,655.35 crore from growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

Larsen & Toubro (L&T) gained 2.13% to Rs 950.85 after L&T Construction secured a 'large' contract for its heavy civil infrastructure business from the civic body of Telangana. As per the L&T's classification, the valuation of the 'large' order stands between Rs 2,500 crore and 5,000 crore.

Hexaware Technologies was locked in an upper circuit of 20% at Rs 311.30 after the company said its board will meet on on 12 June 2020 to consider a proposal to voluntarily delist equity shares of the company. As on 31 March 2020, the promoter HT Global IT Solutions Holding held 62.4% stake in the company while the public shareholders held 37.6% stake. As a part of the delisting offer, HT Global IT Solutions Company, the promoter has given an indicative offer of Rs 285 per share, which is a 9.8% premium on the closing price of the shares on 4 June. The floor price will be separately informed to the company in due course.

Global Markets:

Most Asian stocks advanced on Friday as investors await the U.S. nonfarm payrolls report expected later in the day. The investors remained cautious as they watched developments arising out of US-China tensions and the possibility of second waves of coronavirus infections.

In Europe, the European Central Bank has boosted its pandemic emergency support program by an unexpectedly large 600 billion euros to 1.35 trillion euros ($1.5 trillion) in an effort to keep affordable credit flowing to the economy during the steep downturn caused by the virus outbreak. The central bank also said it would extend the program until June 2021, and reinvest maturing PEPP securities until at least the end of 2022.

The US equity market finished session lower on Thursday, 04 June 2020, as investors hit the pause button on caution as Wall Street grappled with disappointing jobs data and a late-day sell-off in tech shares.

The Labor Department released a report on Thursday showed initial jobless claims tumbled to 1.877 million in the week ended May 30th, a decrease of 249,000 from the previous week's revised level of 2.126 million. Further, report also showed continuing claims - which reflect the aggregate number of Americans receiving unemployment benefits- jumped by 649,000 from the previous week to 21.487 million.

The US trade deficit widened to $49.4 billion in April from a revised $42.3 billion in March after a nosedive in the value of exports outpaced a slump in the value of imports.

Key domestic barometers sharply pare gains in morning trade as selling emerged at higher levels. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 23.34 points or 0.07% at 34,004.04. The Nifty 50 index added 24.05 points or 0.24% at 10,053.15.

In the broader market, the S&P BSE Mid-Cap index gained 0.52% while the S&P BSE Small-Cap index rose 1.24%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1531 shares rose and 481 shares fell. A total of 92 shares were unchanged.

Buzzing Index:

The Nifty Metal index rose 2.55% to 2,023.30, outperforming other sectoral indices on the NSE. The index has added 3.6% in two sessions.

Steel Authority of India (up 4.66%), Hindalco Industries (up 4.59%), Tata Steel (up 4.23%), JSW Steel (up 3.93%), Hindustan Copper (up 3.39%), Jindal Steel & Power (up 3.16%), National Aluminium Company (up 2.3%), NMDC (up 1.88%) and Hindustan Zinc (up 0.96%) advanced. Meanwhile, Vedanta shed 0.43%.

Q4 Results Today:

Larsen & Toubro (up 2.98%) and SBI (up 2.82%) are two Nifty companies that will announce their quarterly earnings today.

Aditya Birla Capital (up 1.99%), Alkem Laboratories (up 2.75%), Exide Industries (up 0.03%), Greaves Cotton (up 3%), Gujarat Gas (down 0.63%), Infibeam Avenues (up 2%), Jyothy Labs (up 3.23%), RPG Life Sciences (up 1.81%), SMS Pharmaceuticals (up 0.23%), Sumitomo Chemical India (up 1.42%) and Timken India (up 1.11%) are some of the companies that will announce their quarterly earnings today.

Earnings impact:

Realty major DLF fell 2.62% to Rs 152.30 after the company reported a consolidated net loss of Rs 1857.76 crore in Q4 March 2020 as compared to a consolidated net profit of Rs 436.56 crore reported in Q4 FY19. Net sales fell 32.2% to Rs 1694.20 crore in Q4 March 2020 over Q4 March 2019. Interest payments were down by 56% to Rs 235.27 crore in Q4 FY20 from Rs 535.15 crore in Q4 FY19.

Pre-tax loss in the fourth quarter stood at Rs 129.72 crore. The company had reported a pre-tax profit of Rs 229.70 crore in the corresponding period last year. Current tax expenses were at 1907.33 crore in Q4 March 2020 as compared to Rs 37.38 crore in Q4 March 2019. “There was a one-time DTA (Deferred Tax Asset) reversal of Rs 1,916 crore, on adoption of lower-tax rate”, the company said in a statement.

In view of COVID-19, after a thorough analysis and following a prudent approach, the company has undertaken certain provisions to reflect changes in the carrying value of some of its assets and investments. This has led to a one-time, exceptional provision (net of taxes) of Rs. 272 crore in Q4 FY20. We anticipate that some semblance of normalcy may return by Q3 FY21, whereby players with strong operational expertise and financial resilience will continue to gain foothold”, the company said.

Separate, the realty major informed that Dr KP Singh vide letter dated 4 June 2020 tendered his resignation from the position of non-executive director/chairman of the company. The DLF Board approved the appointment of Rajiv Singh as the new chairman of DLF. Dr K P Singh will nonetheless continue in a non-executive role as chairman-emeritus, the company said in a statement.

SRF declined 2.88% to Rs 3681.90 after consolidated net profit slipped 2.7% to Rs 185.75 crore on a 4.2% fall in net sales to Rs 1,820.28 crore in Q4 March 2020 over Q4 March 2019. Profit before tax dropped 16.4% to Rs 211.23 crore in Q4 March 2020 as against Rs 252.80 crore in Q4 March 2019. Current tax expenses were down by 58.8% to Rs 25.48 crore in Q4 March 2020 as compared to Rs 61.91 crore paid in Q4 March 2019.

Key indices are trading higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 294.86 points or 0.87% at 34,275.56. The Nifty 50 index was up 93.60 points or 0.93% at 10,122.70. Asian stocks are trading mixed.

The S&P BSE Mid-Cap index was up 0.99%. The S&P BSE Small-Cap index was up 1.32%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1152 shares rose and 228 shares fell. A total of 45 shares were unchanged.

Stocks in news:

Reliance Industries (RIL) rose 1.55%. RIL and Jio Platforms announced today that Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, will invest Rs 9,093.60 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Mubadala's investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis.

HCL Technologies (HCL) slipped 0.06%. HCL and Google Cloud yesterday announced the expansion of their strategic partnership to bring HCL's software offerings, starting with HCL Commerce, to Google Cloud. Google Cloud will be the preferred cloud platform for HCL Commerce, providing global, secure and elastic infrastructure to power businesses' eCommerce strategies. Under this partnership, HCL also intends to leverage Anthos to enable multi-cloud and hybrid-cloud deployments of HCL Commerce.

DLF lost 2.28%. DLF reported consolidated net loss of Rs 1,857.76 crore in Q4 March 2020 as compared to net profit of Rs 436.56 crore in Q4 March 2019. Total income fell 32.8% to Rs 1,873.80 crore in Q4 March 2020 over Q4 March 2019.

SRF declined 2.33%. SRF reported 2.69% fall in consolidated net profit to Rs 185.75 crore on 5.12% fall in total income to Rs 1,864.15 crore in Q4 March 2020 over Q4 March 2019.

RITES advanced 2.64%. RITES said its subsidiary Railway Energy Management Company (REMCL) has secured its largest mandate from Indian Railways for handling tendering, installation supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Indian Railway Land.

Global Markets:

Overseas, Asian stocks were trading mixed as investors awaited key U.S. jobs data.

In US, the S&P 500 lost ground on Thursday as investors took profits in advance of Friday's jobs report, ending a four-day rally driven by rising economic sentiment. The Nasdaq joined the S&P 500 in negative territory, while the blue-chip Dow posted a nominal gain.

The Dow Jones Industrial Average rose 11.93 points, or 0.05%, to 26,281.82, the S&P 500 lost 10.52 points, or 0.34%, to 3,112.35 and the Nasdaq Composite dropped 67.10 points, or 0.69%, to 9,615.81. Shares of Boeing Co. closed 6.4% higher as more airlines resumed flying. Shares of American Airlines Group Inc. soared more than 41%, notching a record gain Thursday, to lead a broad rally in the airline sector, after the carrier said it was boosting capacity amid increasing signs that the worst of the COVID-19-related crisis was over.

The US trade deficit surged in April as the COVID-19 pandemic upended the global flow of goods and services, pushing exports to a 10-year low. The Commerce Department said on Thursday the trade deficit jumped 16.7 percent to $49.4 billion.

In April, exports dropped a record 20.5 percent to $151.3 billion, the lowest since April 2010. Goods exports plunged 25.2 percent to $95.5 billion, the lowest since September 2009. Exports of motor vehicles and parts fell to $3.8 billion, the lowest since March 1992. Shipments of consumer goods dropped to $10.4 billion, the lowest since April 2006.

In Europe, the European Central Bank has boosted its pandemic emergency support program by an unexpectedly large 600 billion euros to 1.35 trillion euros ($1.5 trillion) in an effort to keep affordable credit flowing to the economy during the steep downturn caused by the virus outbreak. The central bank also said it would extend the program until June 2021, and reinvest maturing PEPP securities until at least the end of 2022.

Back home, barometers ended with small losses on Thursday, snapping a six-day rising streak. Selling in banks stocks put pressure on bourses. Banks corrected after the Supreme Court (SC) raised concerns over levying of interests on loans during the six-month moratorium period. The barometer S&P BSE Sensex lost 128.84 points or 0.38% at 33,980.70. The Nifty 50 index fell 32.45 points or 0.32% at 10,029.10. Both these indices rallied over 11% in previous six trading sessions.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 847.31 crore in the Indian equity market on 4 June, provisional data showed.

At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 349.58 points or 1.02% at 33,759.96. The Nifty 50 index lost 104.45 points or 1.04% at 9,957.10.

The broader market traded with minor losses. The S&P BSE Mid-Cap index fell 0.36% while the S&P BSE Small-Cap index declined 0.33%.

The market breadth was negative. On the BSE, shares 1,120 rose and 1,247 shares fell. A total of 140 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,851.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 781.79 crore in the Indian equity market on 3 June 2020, provisional data showed.

Buzzing Index:

The Nifty Auto index declined 0.71% to 6,452.65. The index jumped about 20% in past eleven trading sessions.

Ashok Leyland (down 3.18%), Mahindra & Mahindra (down 2.35%), Eicher Motors (down 1.89%), TVS Motor (down 0.82%), Tata Motors (down 0.81%) and Hero MotoCorp (down 0.1%) were top losers in auto segment.

V.S.T Tillers Tractors advanced 15.46%. The company's power tillers sales rose to 1,750 units in May 2020 from 1,411 units in May 2019. Tractors sales rose to at 633 units from 527 units.

Stocks in Spotlight:

Aurobindo Pharma rose 1.84%. The drug maker announced that the United States Food and Drug Administration (USFDA) inspected AuroLife Pharma LLC's (wholly owned step-down subsidiary) oral solid manufacturing facility situated at Dayton, New Jersey, a of the Company, from 13 January to 12 February 2020. At the end of the inspection, a 'Form 483' was issued with nine observations. With respect to the mentioned inspection, the company received a letter from USFDA classifying the inspection as “Official Action Indicated”. The company said that this OAI classification may not have any material impact on the existing revenues, the supplies of our US business or pipeline products at this juncture. The exclusive sales from this facility is around 2% of the group turnover. Aurobindo assured that it will work closely with the regulator to comprehensively address the issues.

Saregama India hit an upper circuit of 20% at Rs 400.70, extending gains for the second day. The stock has added 44% in two sessions from its closing of Rs 278.30 on 2 June 2020. During market hours yesterday, Saregama India announced a global deal with Facebook, to license its music for video and other social experiences across Facebook & Instagram. This partnership will allow users to choose from a wide variety of music to add to their social experiences such as videos, stories via music stickers and other creative content. People will also be able to add songs to their Facebook profile.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.8% compared with previous closing of 6.031% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.57 compared with its previous closing of 75.4775.

In the commodities market, Brent crude for August 2020 settlement was down 31 cents to $39.48 a barrel. The contract rose 0.56% to settle at $39.79 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement rose 0.56% to Rs 46,265.

Benchmark indices traded with steep losses in afternoon trade. Selling pressure was broad based with banks and financial stocks correcting after the Supreme Court (SC) raised concerns over levying of interests on loans during the six-month moratorium period.

At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 349.58 points or 1.02% at 33,759.96. The Nifty 50 index lost 104.45 points or 1.04% at 9,957.10.

The broader market corrected. The S&P BSE Mid-Cap index fell 0.51%. The S&P BSE Small-Cap index declined 0.57%.

Sellers outpaced the buyers. On the BSE, shares 1,011 rose and 1,224 shares fell. A total of 114 shares were unchanged. In Nifty 50 index, 18 stocks advanced while 32 stocks declined.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 65,13,301 far with 3,86,091 deaths. India reported 1,06,737 active cases of COVID-19 infection and 6,075 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

Vedanta (up 4.34%), Tech Mahindra (up 4.08%), Sun Pharmaceutical Industries (up 2.49%), Cipla (up 1.86%) and Power Grid Corporation of India (up 1.70%) were top Nifty gainers.

IndusInd Bank (down 5.19%), Bajaj Finance (down 4.93%), Asian Paints (down 3.96%), HDFC (down 3.89%) and Axis Bank (down 3.81%) were major Nifty losers.

Q4 Results Today:

DLF (down 0.35%), NIIT (up 0.98%), PI Industries (up 0.10%), Safari Industries (India) (down 4.95%) and SRF (up 0.53%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

BPCL gained 0.23%. The PSU OMC reported a consolidated net loss of Rs 1,819.56 crore in Q4 March 2020 as compared with a net profit of Rs 3,131.66 crore in Q4 March 2019. The average gross refining margin (GRM) during the financial year ended 30 March 2020 is $2.50 per barrel as compared with $4.58 per barrel last year. Net sales slipped 7.1% to Rs 68,997.83 crore in Q4 March 2020 over Rs 74,255.73 crore in Q4 March 2019. Consolidated pre-tax loss stood at Rs 2,958.91 crore in Q4 March 2020 as against a pre-tax gain of Rs 4,961.79 crore in Q4 March 2019.

Aurobindo Pharma advanced 1.35% after consolidated net profit jumped 45.2% to Rs 849.80 crore on 16.6% rise in net sales to Rs 6,063.40 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 1,077.51 crore in Q4 March 2020, rising 32% from Rs 816.34 crore in Q4 March 2019. Consolidated EBITDA surged 26.6% to Rs 1,342 in Q4 March 2020 from Rs 1,060 crore in Q4 March 2019. EBITDA margin improved to 21.8% in Q4 March 2020 from 20% in Q4 March 2019. Research & Development expenses for Q4 March 2020 stood at Rs 239 crore, 3.9% of revenue. US formulation sales stood at Rs 2,990.3 crore in Q4 March 2020, registering a growth of 20.5% from Rs 2,481.10 crore in Q4 May 2019. Europe formulation sales stood at Rs 1,652.5 crore, an increase of 26% from the same period last year. API sales for the quarter declined 17.6% and stood at Rs 755.6 crore in Q4 March 2020 as against Rs 916.8 crore in Q4 March 2019.

Cholamandalam Investment and Finance Company dropped 7.74% after net profit slumped 85.38% to Rs 42.66 crore on 14.11% rise in total income to Rs 2,151.45 crore in Q4 March 2020 over Q4 March 2019. The NBFC major said net profit before this provision stood at Rs 418 crore which is up by 43% for the quarter over previous year. Total Assets under Management (AUM) grew by 16% to Rs 66,943 crore from Rs 57,560 crore in Q4 March 2019. With respect to the moratorium announced by RBI on EMI repayments, Cholamandalam Investment said that nearly 76% of customers have availed moratorium considering the uncertainty over the period of lockdown. The company has created a one-time contingency provision of Rs 284 crore towards probable losses against loans for which moratorium was extended. Over and above this, the company has also created a Macro provision of Rs 250 crore to meet contingencies that may arise post moratorium due to the global recession and economic slow-down. In total, the company has set aside an additional provision of Rs 534 crore (including Rs 30 crore of Macro provision created in FY 19) to meet any contingencies that may arise in future due to the Covid-19 shut down. The company further said it has not availed moratorium so far on its borrowings, and it does not intend to avail any moratorium benefit.

Stocks in Spotlight:

GAIL (India) rose 0.88%. GAIL (India) and Energy Efficiency Services (EESL) signed a Memorandum of Understanding (MoU) yesterday for cooperation in development of Trigeneration projects in India. The MoU aims at building a closer strategic partnership between the two. companies by jointly exploring business opportunities in Trigeneration business segment in India.

Jindal Steel & Power (JSPL) jumped 6.62% after the company's standalone steel sales jumped 28% to 6,40,000 tonnes in May 2020 from 5,00,000 tonnes recorded during the same period in the previous year. Out of total standalone sales, 4,01,000 tonnes are export sales. The company's consolidated steel sales stood 7,97,000 tonnes in May 2020, up by 26% from 6,31,000 tonnes reported in May 2019. Consolidated steel production stood at 6,20,000 tonnes and pellets production was at 6,47,000 tonnes in May 2020. The figures are on provisional basis.

Persistent Systems gained 0.64%. Persistent Systems and IBM yesterday announced a new collaboration to help accelerate IBM Cloud Pak deployments to speed clients' enterprise modernization and their move to the cloud.

Global Markets:

European market opened lower on Thursday. The European Central Bank (ECB) is expected to increase its coronavirus crisis asset-purchase program at this week's meeting. In March, the ECB unveiled its Pandemic Emergency Purchase Programme (PEPP), which will see it buy 750 billion euros (i.e. $819 billion) in euro zone government bonds this year in a bid to do more in combatting COVID-19 outbreak.

Most Asian stocks traded higher amid optimism about a possible global recovery from the coronavirus pandemic as more economies reopen despite rising case numbers in the United States, Brazil and other countries.

The US equity market finished session higher on Wednesday, 3 June, as investors risk sentiments improved on slew of better than expected economic data and expectation that economic activity will improve with the ebbing of coronavirus infections and additional government stimulus.

The Commerce Department released a report on Wednesday showing another nosedive in factory orders in the month of April, after reporting a steep drop in new orders for U.S. manufactured goods in the previous month. The Commerce Department said new orders plunged by 13% in April after plummeting by a revised 11% in March.

US service sector activity continued to contract in the month of May, a report released by the Institute for Supply Management on Wednesday showed. The ISM said its non-manufacturing index rebounded to 45.4 in May after plunging to an eleven-year low of 41.8 in April. A reading below 50 still indicates a contraction in service sector activity.

The market declined further in early afternoon trade, led by selling in banks shares. Profit selling emerged after the Sensex and the Nifty rallied over 11% in previous six trading sessions. Banks shares corrected after the Supreme Court (SC) raised concerns over levying of interests on loans during the six-month moratorium period.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 336.95 points or 0.99% at 33,772.59. The Nifty 50 index lost 104.20 points or 1.04% at 9,957.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.73% while the S&P BSE Small-Cap index slipped 0.71%.

The market breadth was strong. On the BSE, 1009 shares rose and 1220 shares fell. A total of 111 shares were unchanged. In the Nifty 50 index, 15 shares advanced while 35 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.49% to 29.8925. The Nifty June 2020 futures were trading at 9,941.75, a discount of 15.6 points compared with the spot at 9,957.35.

On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 17.12 lakh contracts at the 10,000 strike price. Maximum put OI of 31.37 lakh contracts was seen at 9,000 strike price.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 65,11,713 far with 3,86,073 deaths. India reported 1,06,737 active cases of COVID-19 infection and 6,075 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Private Bank index fell 2.74% to 11,170.20, declining the most among the sectoral indices on the NSE. The Supreme Court on Thursday made oral observations raising concerns over the Reserve Bank of India (RBI) allowing levy of interest during the moratorium period allowed for loan repayments.

Bandhan Bank (down 7.01%), RBL Bank (down 5.28%), IndusInd Bank (down 4.83%), Axis Bank (down 3.81%), Kotak Mahindra Bank (down 3.08%), Federal Bank (down 2.65%), ICICI Bank (down 2.2%), City Union Bank (down 2.04%), HDFC Bank (down 1.31%) and Yes Bank (down 0.18%) declined.

The economic aspect is not higher than health of the people, SC told RBI in the interest waiver case. The central bank had in an affidavit said lenders will lose around Rs 2 lakh crore if interest is waived during the loan moratorium, which has been extended till August 31.

A bench comprising Justices Ashok Bhushan, S K Kaul and M R Shah was hearing petitions filed Gajendra Sharma and few others challenging the RBI Circulars of March 27 and May 22 to the extent they allowed financial institutions to levy interest on loans during the 6-month moratorium.

As per reports, Justice Bhushan said There are two issues in this: No interest during moratorium period, and no interest on interest. Accrual of interest while allowing moratorium is “detrimental”, remarked Justice M R Shah. On this, the Solicitor General Tushar Mehta said that he will seek instructions from the Ministry of Finance and RBI. Referring to the RBIs stand in the counter-affidavit that the waiver of interest would affect the financial health of lending institutions, Senior Advocate Rajiv Dutta, appearing for petitioners, submitted.

Earnings Impact:

Cholamandalam Investment and Finance Company slumped 7.64% to Rs 143.85 after net profit slumped 85.38% to Rs 42.66 crore on 14.11% rise in total income to Rs 2,151.45 crore in Q4 March 2020 over Q4 March 2019. The NBFC major said net profit before this provision stood at Rs 418 crore which is up by 43% for the quarter over previous year. Total Assets under Management (AUM) grew by 16% to Rs 66,943 crore from Rs 57,560 crore in Q4 March 2019.

With respect to the moratorium announced by RBI on EMI repayments, Cholamandalam Investment said that nearly 76% of customers have availed moratorium considering the uncertainty over the period of lockdown.

The company has created a one-time contingency provision of Rs 284 crore towards probable losses against loans for which moratorium was extended. Over and above this, the company has also created a Macro provision of Rs 250 crore to meet contingencies that may arise post moratorium due to the global recession and economic slow-down.

In total, the company has set aside an additional provision of Rs 534 crore (including Rs 30 crore of Macro provision created in FY 19) to meet any contingencies that may arise in future due to the Covid-19 shut down. The company further said it has not availed moratorium so far on its borrowings, and it does not intend to avail any moratorium benefit.

DCM Shriram fell 3.89% to Rs 287.50 after consolidated net profit dropped 29% to Rs 207.38 crore on 0.9% decline in net sales to Rs 1,862.99 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax tanked 33.3% to Rs 247.91 crore in Q4 March 2020 as against Rs 371.59 crore in Q4 March 2019.

Revenues from operations were dragged by lower chemicals ECU (Electro Chemical Unit) prices. ECU prices fell 35% YoY (year-on-year) leading to lower revenues by Rs 158 crore. Volumes lost 4% YoY on account of nationwide lockdown due to COVID-19. Poly Vinyl Chloride (PVC) volumes also tumbled 22% YoY as a result of nationwide lockdown due to COVID-19.

However, revenues were boosted by higher domestic sugar volumes up by 38% YoY and distillery volumes up 83% YoY consequent to commissioning of second distillery 200 kilo-litres per day (KLD) and higher sugar prices 4% YoY during Q4 FY20. Sugar Free Solutions (SFS) value added inputs revenues up 22% YoY with enhanced focus on this segment.

Meanwhile, the company has decided to enter the business of country liquor as a forward integration of sugar distillery operations. The board has approved an investment of about Rs 42.40 crore to set up country liquor bottling plant of capacity of 11,000 cases per day at Hariawan (UP) sugar unit. This will also enable swing capability between ethanol & country liquor.

Key barometers slipped into negative terrain in mid-morning trade. Profit selling emerged after the Sensex and the Nifty rallied over 11% in previous six trading sessions. However, gradual lifting of lockdown measures and expectations of further government stimulus supported investor confidence.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 106.16 points or 0.31% at 34,003.38. The Nifty 50 index lost 34.35 points or 0.34% at 10,027.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.02% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was strong. On the BSE, 1150 shares rose and 985 shares fell. A total of 117 shares were unchanged. In the Nifty 50 index, 21 shares advanced while 29 stocks declined.

Unlock 1:

Union Ministry of Home Affairs (MHA) issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from 8 June. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner.

The lockdown was first enforced in March to contain the spread of COVID-19.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 65,11,713 far with 3,86,073 deaths. India reported 1,06,737 active cases of COVID-19 infection and 6,075 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Pharma index rose 1.80% to 10,041.25. The index has added 6.1% in six sessions.

Wockhardt (up 4.04%), Glenmark Pharmaceuticals (up 3.14%), Strides Pharma Science (up 2.89%), Sun Pharmaceutical Industries (up 2.68%), Lupin (up 2.41%), Cipla (up 1.88%), Aurobindo Pharma (up 1.79%), Divi's Laboratories (up 1.75%), Dr Reddy's Laboratories (up 1.67%), GlaxoSmithKline Pharmaceuticals (up 1.32%), Alkem Laboratories (up 0.98%), Cadila Healthcare (up 0.71%), IPCA Laboratories (up 0.18%) and Abbott India (up 0.1%) advanced.

Stocks in Spotlight:

V.S.T. Tillers Tractors jumped 5.15% to Rs 1160.30 after the company's total sales rose 22.96% to 2,383 units in May 2020 as against 4,815 units in May 2019. Sale of power tillers rose 24.02% to 1,750 units in May 2020 as compared to 1,411 units reported in May 2019. Sale of tractors rose 20.11% to 633 units in May 2020 as against 527 units in the same period last year.

Jindal Steel & Power (JSPL) rose 2.47% to Rs 130.70 after the company's standalone steel sales jumped 28% to 640,000 tonnes in May 2020 from 500,000 tonnes recorded during the same period in the previous year. Out of total standalone sales, 4,01,000 tonnes are export sales.

JSPL's consolidated steel sales stood 7,97,000 tonnes in May 2020, up by 26% from 631,000 tonnes reported in May 2019. Consolidated steel production stood at 620,000 tonnes and pellets production was at 647,000 tonnes in May 2020. The figures are on provisional basis.

Global Markets:

Overseas, Asian stocks were trading higher amid optimism about a possible global recovery from the coronavirus pandemic as more economies reopen despite rising case numbers in the United States, Brazil and other countries.

The US equity market finished session higher on Wednesday, 3 June, as investors risk sentiments improved on slew of better than expected economic data and expectation that economic activity will improve with the ebbing of coronavirus infections and additional government stimulus.

The Commerce Department released a report on Wednesday showing another nosedive in factory orders in the month of April, after reporting a steep drop in new orders for U.S. manufactured goods in the previous month. The Commerce Department said new orders plunged by 13% in April after plummeting by a revised 11% in March.

US service sector activity continued to contract in the month of May, a report released by the Institute for Supply Management on Wednesday showed. The ISM said its non-manufacturing index rebounded to 45.4 in May after plunging to an eleven-year low of 41.8 in April. A reading below 50 still indicates a contraction in service sector activity.

Key equity benchmarks were trading almost flat in morning trade. The Nifty held above the 10,000 mark. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 50.02 points or 0.15% at 34,159.56. The Nifty 50 index added 21.45 points or 0.21% at 10,083.00.

In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 0.40%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1137 shares rose and 785 shares fell. A total of 88 shares were unchanged. In the Nifty 50 index, 28 shares advanced while 22 stocks declined.

Buzzing Index:

The Nifty PSU Bank index rose 3.04% to 1,323.45. The index has added 17.85% in five sessions.

Punjab & Sind Bank (up 9.68%), IDBI Bank (up 8.49%), Punjab National Bank (up 4.13%), Union Bank of India (up 3.94%), Bank of India (up 3.29%), Indian Bank (up 3.24%), Central Bank of India (up 1.94%), United Bank of India (up 1.56%), Bank of Maharashtra (up 1.55%), Canara Bank (up 1.44%), UCO Bank (up 1.05%), Bank of Baroda (up 0.93%) and Allahabad Bank (up 0.13%) advanced.

Earnings today:

DLF (down 0.74%), NIIT (up 2.12%), PI Industries (up 1.98%), Safari Industries (India) (down 4.59%) and SRF (up 0.48%) will announce their quarterly earnings today.

Earnings impact:

Aurobindo Pharma rose 2.72% to Rs 771.05 after consolidated net profit jumped 45.2% to Rs 849.80 crore on 16.6% rise in net sales to Rs 6063.40 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 1077.51 crore in Q4 March 2020, rising 32% from Rs 816.34 crore in Q4 March 2019.

Consolidated EBITDA surged 26.6% to Rs 1342 in Q4 March 2020 from Rs 1060 crore in Q4 March 2019. EBITDA margin improved to 21.8% in Q4 March 2020 from 20% in Q4 March 2019. Research & Development expenses for Q4 March 2020 stood at Rs 239 crore, 3.9% of revenue.

US formulation sales stood at Rs 2,990.3 crore in Q4 March 2020, registering a growth of 20.5% from Rs 2,481.1 crore in Q4 May 2019. Europe formulation sales stood at Rs 1,652.5 crore, an increase of 26% from the same period last year. API sales for the quarter declined 17.6% and stood at Rs 755.6 crore in Q4 March 2020 as against Rs 916.8 crore in Q4 March 2019.

The pharmaceutical company reduced its net debt to Rs 2718.4 crore in March 2020 from Rs 3181.9 crore in December 2019 and Rs 5008.1 crore in March 2019.

Bharat Petroleum Corporation (BPCL) fell 0.84% to Rs 346.10 after consolidated net loss was at Rs 1,819.56 crore in Q4 March 2020 as compared with a net profit of Rs 3,131.66 crore in Q4 March 2019. The average gross refining margin (GRM) during the financial year ended 30 March 2020 is $2.50 per barrel as compared with $4.58 per barrel last year.

Net sales slipped 7.1% to Rs 68,997.83 crore in Q4 March 2020 over Rs 74,255.73 crore in Q4 March 2019. Consolidated pre-tax loss stood at Rs 2,958.91 crore in Q4 March 2020 as against a pre-tax gain of Rs 4,961.79 crore in Q4 March 2019.

Local stocks are trading with modest gains in early trade, extending six-day gains. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 124.93 points or 0.37% at 34,234.47. The Nifty 50 index was up 46.95 points or 0.47% at 10,108.50. Asian stocks were trading higher.

The S&P BSE Mid-Cap index was up 0.82%. The S&P BSE Small-Cap index was up 0.86%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1005 shares rose and 365 shares fell. A total of 49 shares were unchanged.

Stocks in news:

Reliance Industries (RIL) rose 0.53%. The rights issue of Reliance Industries (RIL) received total bids for 55.08 crore shares, as against 42.26 crore shares on offer, according to BSE data at 5:30 PM IST. The issue was subscribed 1.3 times. The rights issue valued at Rs 53,125 crore, opened for subscription on 20 May 2020 and closed on 3 June 2020.

All eligible shareholders as per record date of 14 May were entitled to subscribe to the fresh issue. The company will offer existing shareholders one new share for 15 held at a Rs 1,257.

GAIL (India) rose 1.61%. GAIL (India) and Energy Efficiency Services (EESL) have signed a Memorandum of Understanding (MoU) yesterday for cooperation in development of Trigeneration projects in India. The MoU aims at building a closer strategic partnership between the two. companies by jointly exploring business opportunities in Trigeneration business segment in India.

Persistent Systems rose 0.99%. Persistent Systems and IBM yesterday announced a new collaboration to help accelerate IBM Cloud Pak deployments to speed clients' enterprise modernization and their move to the cloud. Persistent also announced a new IBM Cloud Pak deployment practice to help organizations migrate and modernize IBM workloads across all cloud environments, including IBM public cloud and IBM Cloud services.

Aurobindo Pharma jumped 4.65% after consolidated net profit surged 45.18% to Rs 849.83 crore on 16.56% rise in net sales to Rs 6,063.40 crore in Q4 March 2020 over Q4 March 2019.

MAS Financial Services fell 2.06% after consolidated net profit dropped 14.21% to Rs 35.68 crore on 10.74% rise in net sales to Rs 182.41 crore in Q4 March 2020 over Q4 March 2019.

V.S.T Tillers Tractors advanced 3.12%. V.S.T Tillers Tractors said power tillers sales rose to 1,750 units in May 2020 from 1,411 units in May 2019. Tractors sales rose to at 633 units from 527 units.

Global Markets:

Overseas, Asian stocks were trading higher on Thursday as optimism over the economic recovery from the coronavirus pandemic continued to keep investor sentiment afloat.

In US, Wall Street rallied broadly on Wednesday with the Nasdaq approaching record highs as signs of an economic recovery from mandated shutdowns helped investors look beyond US social unrest and pandemic worries.

The Dow Jones Industrial Average rose 527.24 points, or 2.05%, to 26,269.89, the S&P 500 gained 42.05 points, or 1.36%, to 3,122.87 and the Nasdaq Composite added 74.54 points, or 0.78%, to 9,682.91. The Nasdaq Composite Index is just 1.4% away from its all-time closing high of 9,817.18 in February.

Back home, domestic shares extended their winning streak to sixth straight session on Wednesday. Global cues were supportive as hopes of more stimulus and further easing in social restrictions around the world surpassed coronavirus fears. The barometer S&P BSE Sensex jumped 284.01 points or 0.84% at 34,109.54. The Nifty 50 index soared 82.45 points or 0.83% at 10,061.55. Both these indices rose over 11% in six trading sessions.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,851.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 781.79 crore in the Indian equity market on 3 June 2020, provisional data showed.

At 14:22 IST, the barometer index, the S&P BSE Sensex soared 564.18 points or 1.67% at 34,389.61. The Nifty 50 index rallied 173.85 points or 1.74% at 10,152.10.

Global cues were positive as hopes of more stimulus and further easing in social restrictions around the world eclipsed worries over coronavirus. The sentiment was also boosted by Prime Minister Narendra Modi's comment that India's economy would get back on track supported by systematic reforms.

Broader markets were trading firm. The S&P BSE Mid-Cap index rose 1.47% while the S&P BSE Small-Cap index gained 2.18%.

The market breadth was strong. On the BSE, shares 1,792 rose and 612 shares fell. A total of 140 shares were unchanged. In Nifty 50 index, 39 stocks advanced while 11 stocks declined.

Buzzing index:

The Nifty Auto index gained 0.95% to 6,532.80. The index has advanced 20.3% in eleven days from its previous closing low of 5430.05 on 18 May 2020.

Bosch (up 5.84%), Apollo Tyres (up 4.91%), Tata Motors (up 4.35%), Mahindra & Mahindra (up 3.34%), Bharat Forge (up 2.59%), Ashok Leyland (up 2.1%), Motherson Sumi (up 1.18%), Eicher Motors (up 0.97%) and Bajaj Auto (up 0.67%) were top gainers in auto segment.

Stocks in Spotlight:

Syngene International has entered into collaboration with HiMedia Laboratories, a bioscience company with expertise in media manufacturing and diagnostics for over 45 years, to manufacture and distribute its ELISA kits. HiMedia will manufacture the kits at its facility in Mumbai and distribute it across India. Shares of Sygene International were up 0.78% at Rs 373.80.

Lupin gained 0.82% after it announced that it has received approval for its Meloxicam Capsules from U.S. FDA to market a generic equivalent of Vivlodex Capsules of Zyla Life Sciences US, Inc. The product would be manufactured at Lupin's Aurangabad facility, India, and is expected to be launched shortly. The announcement was made after market hours yesterday, 2 June 2020.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.819% compared with previous closing of 6.029% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.4775 compared with its previous closing of 75.36.

In the commodities market, Brent crude for August 2020 settlement was up 47 cents to $40.04 a barrel. The contract surged 3.26% to settle at $39.57 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 0.42% to Rs 46,600.

The benchmark indices were trading with strong gains in afternoon trade, led by banks shares. Press briefing on Cabinet decisions will be reportedly held at 4 pm today.

At 13:20 IST, the barometer index, the S&P BSE Sensex soared 431.25 points or 1.27% at 34,256.78. The Nifty 50 index rallied 133 points or 1.33% at 10,112.10.

Global cues were positive as hopes of more stimulus and further easing in social restrictions around the world eclipsed worries over coronavirus. The sentiment was also boosted by Prime Minister Narendra Modi's comment that India's economy would get back on track supported by systematic reforms.

Broader markets were trading frim. The S&P BSE Mid-Cap index rose 1.16%. The S&P BSE Small-Cap index gained 2.06%.

The market breadth was strong. On the BSE, shares 1,777 rose and 580 shares fell. A total of 126 shares were unchanged. In Nifty 50 index, 39 stocks advanced while 10 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,498.29 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 441.05 crore in the Indian equity market on 2 June, provisional data showed. Uday Kotak sold 2.8% in Kotak Mahindra Bank for Rs 6,900 crore through block deals on Tuesday.

Cyclone Nisarg:

Cyclone Nisarg intensified into a severe cyclonic storm Wednesday morning, and is expected to cross the Maharashtra coast this afternoon. The storm is likely to make landfall close to Alibagh in Raigad district, which is just over 100 km south of Mumbai. Investors stay cautious ahead of the cyclone. India Meteorological Department tweeted: The cyclone will gradually enter into Mumbai and Thane district during next 3 hrs. Landfall will commence in 1 hr and the process will be completed during next 3 hrs.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 63,83,805 far with 3,80,331 deaths. India reported 1,01,497 active cases of COVID-19 infection and 5,815 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The IHS Markit India Services Business Activity Index recorded 12.6 in May. Although the headline figure rose from April's unprecedented low of 5.4, it remained at a level which, prior to the coronavirus pandemic, was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity across India.

The Composite PMI Output Index, which measures combined services and manufacturing output, signalled a further severe contraction in private sector business activity during May. Posting 14.8, from 7.2 in April, the latest reading was consistent with a further decline in output which was unparalleled prior to the COVID-19 outbreak.

Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said: Service sector activity in India is still effectively on hold, latest PMI data suggest, as output fell at an extreme rate once again during May. Given the stringency of the lockdown measures imposed in India, it is no surprise to see the severity of the declines in April and May. Demand for services, both domestically and overseas, continued to plummet in May as clients' businesses remained closed and footfall remains drastically below normal levels. With economic output set to fall enormously in the first half of 2020, it is clear that the recovery to pre-COVID-19 levels of GDP is going to be very slow.

Q4 Results Today:

Aurobindo Pharma (up 1.84%), BPCL (down 2.36%), Cholamandalam Investment and Finance Company (up 2.95%), Dishman Carbogen Amcis (up 4.93%), DCM Shriram (up 1.87%) and MAS Financial Services (up 1.96%) are some of the companies that will announce their quarterly earnings today.

Gainers & Losers:

Bajaj Finance (up 4.62%), ICICI Bank (up 4.41%), State Bank of India (up 3.73%), Mahindra & Mahindra (up 3.60%) and Tata Motors (up 3.32%) were top Nifty gainers.

Bharti Infratel (down 2.22%), Wipro (down 1.85%), NTPC (down 1.81%), Infosys (down 1.12%) and Maruti Suzuki India (down 0.83%) were top Nifty losers.

Earnings Impact:

Britannia Industries jumped 5.13% after the packaged foods maker's consolidated net profit surged 26% to Rs 374.75 crore on 1.6% rise in net sales to Rs 2,807.78 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 457.72 crore in Q4 March 2020, rising 1.6% from Rs 449.92 crore in Q4 March 2019. Net profit was aided by a significant drop in tax expenses. Total tax expenses declined 45.4% to Rs 84.92 crore in Q4 March 2020 from Rs 155.65 crore reported in the same period last year. Commenting on the performance, Varun Berry, Managing Director, said that on the cost front, the company witnessed moderate inflation in the prices of key raw materials for the bakery business. Commodity prices at global level too witnessed a moderation due to low demand on account of lockdown in most parts of the world.

InterGlobe Aviation (IndiGo) soared 8.99%. InterGlobe Aviation reported a consolidated net loss of Rs 870.81 crore in Q4 March 2020 as against consolidated net profit of Rs 595.83 crore in Q4 March 2019. Pre-tax loss stood at Rs 1,289.77 crore in Q4 FY20 as against pre-tax profit of Rs 626.07 crore in Q4 FY19. Net sales during the quarter rose 5.3% YoY (year-on-year) to Rs 8,299.06 crore. Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the quarter.

Zydus Wellness advanced 2.50% after the company reported a 10.9% rise in consolidated net profit to Rs 69.10 crore on 17.2% rise in net sales to Rs 487.87 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 61.47 crore in Q4 March 2020, rising 24% from Rs 49.48 crore reported in Q4 March 2019. Adjusted EBIDTA was up by 20.9% to Rs 104.60 crore in Q4 March 2020 over Q4 March 2019.

Granules India gained 1.43% after consolidated net profit jumped 44.2% to Rs 92.34 crore on 2.2% decline in net sales to Rs 599.88 crore in Q4 March 2020 over Q4 March 2019. Revenue during the quarter was impacted due to restriction imposed on paracetamol API (active pharmaceutical ingredients), PFI (Pharmaceutical Formulation Intermediates) and ED. Restriction removed for PFI and FD (Finished Dosages) on April 2020 and API by end of May 2020. Consolidated profit before tax soared 62.3% to Rs 136.70 crore in Q4 March 2020 as against Rs 84.22 crore in Q4 March 2019. Current tax expenses jumped 123% to Rs 35.93 crore in Q4 March 2020 as against Rs 16.11 crore paid in Q4 March 2019. The result was declared post trading hours yesterday, 2 June 2020.

Global Markets:

European markets opened higher while Asian shares continued traded higher on Wednesday as optimism over economies reopening from shutdowns cheered investors.

In Europe, Lufthansa reported a net loss of 2.1 billion euros ($2.35 billion) for the first three months of the year.

Japan's services sector activity stayed deep in contraction in May, although the pace of decline moderated from the previous month, as restraining measures put in place over the coronavirus outbreak hurt business activity and the jobs market.

The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 26.5 in May from a record low 21.5 in the previous month.

US stocks ended higher for a second straight day Tuesday. Technology, industrial and health care sector shares accounted for majority of the gains. Energy stocks outperformed the remainder of the market as the price of brent crude rose ahead of a meeting of major oil producers. Bond yields climbed, another indicator of receding pessimism among investors.

Meanwhile, President Donald Trump reiterated threats to deploy military troops across cities facing protests if governors and local officials prove unable to contain violent demonstrations.

Major cities from Los Angeles to New York have been engulfed in nightly protests after George Floyd, a black man, died last Monday following a confrontation with police in Minneapolis in which a white police officer, Derek Chauvin, was captured on video driving his knee onto Floyd's neck until the handcuffed man lost consciousness and later died. New York City announced its 8 PM curfew will remain in place for the rest of the week, but that didn't stop hundreds from marching to protest the killing of Floyd.

Key barometers traded near the day's high in early afternoon trade. At 12:26 IST, the barometer index, the S&P BSE Sensex, was up 422.53 points or 1.25% at 34,248.06. The Nifty 50 index added 128.85 points or 1.29% at 10,107.95.

Global cues were positive as hopes of more stimulus and further easing in social restrictions around the world eclipsed worries over coronavirus. The sentiment was also boosted by Prime Minister Narendra Modi's comment that India's economy would get back on track supported by systematic reforms.

In the broader market, the S&P BSE Mid-Cap index rose 1.22% while the S&P BSE Small-Cap index gained 2.19%.

The market breadth was strong. On the BSE, 1730 shares rose and 553 shares fell. A total of 126 shares were unchanged. In the Nifty 50 index, 40 shares advanced while 10 stocks declined.

Cyclone Nisarg:

Cyclone Nisarg intensified into a severe cyclonic storm Wednesday morning, and is expected to cross the Maharashtra coast this afternoon. The storm is likely to make landfall close to Alibagh in Raigad district, which is just over 100 km south of Mumbai.

India Meteorological Department tweeted: The cyclone will gradually enter into Mumbai and Thane district during next 3 hrs. Landfall will commence in 1 hr and the process will be completed during next 3 hrs.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.62% to 29.92. The Nifty June 2020 futures were trading at 10,097, a discount of 10.95 points compared with the spot at 10,107.95.

On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 17.12 lakh contracts at the 10,000 strike price. Maximum put OI of 31.37 lakh contracts was seen at 9,000 strike price.

Buzzing Index:

The Nifty Metal index rose 1.79% to 1,991.05. The index has gained 16.4% in seven days while the benchmark Nifty 50 index has added 12.1% during the same period.

Vedanta (up 4.34%), Hindalco Industries (up 2.9%), JSW Steel (up 2.7%), Steel Authority of India (up 1.93%), Hindustan Copper (up 1.91%), National Aluminium Company (up 1.45%), NMDC (up 1.29%), Tata Steel (up 1.24%), Jindal Steel & Power (up 1.2%) and Hindustan Zinc (up 0.32%) advanced.

Earnings Impact:

Sun Pharma Advanced Research Company (SPARC) fell 2.57% to Rs 136.70 after the company reported standalone net loss of Rs 99.54 crore in Q4 March 2020, higher than net loss of Rs 9.35 crore in Q4 March 2019. Net sales slumped 73.2% to Rs 22.71 crore in Q4 March 2020 over Q4 March 2019. Standalone pre-tax loss stood at Rs 99.54 crore in Q4 March 2020 as against pre-tax loss of Rs 9.35 crore in Q4 March 2019.

The company has a negative net worth as of 31 March 2020 as current liabilities exceed current assets. The firm said it is evaluating various sources of raising funds for its operations. The company has also received a financial support letter from its parent company which is valid till time the company is able to raise funds from external sources, it said.

Spandana Sphoorty hit an upper circuit of 5% at Rs 535 after the microfinance lender reported a 12.7% rise in net profit to Rs 83.04 crore on 63.8% rise in total income to Rs 439.77 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 108.47 crore in Q4 March 2020, rising 0.6% from Rs 107.78 crore in Q4 March 2019. Income tax expense declined 28.36% to Rs 24.43 crore in Q4 March 2020 from Rs 34.10 crore in Q4 March 2019.

After assessing the impact of the COVID-19 pandemic on its liquidity and ability to fulfill its obligations, the company made a provision and write offs of Rs 129 crore in Q4 March 2020. Total impairment on financial instruments stood at Rs 188.11 crore in Q4 March 2020, higher than Rs 21.15 crore in Q4 March 2019.

Net interest income stood at Rs 263 crore in Q4 March 2020, jumping 56% from Rs 168 crore in the year ago period. Net interest margin improved to 16.6% in Q4 March 2020 from 15.9% in Q4 March 2019. The firm recorded a 67% jump in disbursement to Rs 2324 crore in Q4 March 2020 from Rs 1390 crore in Q4 March 2019. Total Assets Under Management (AUM) stood at Rs 6,829 crore in March 2020, rising by 74% from Rs 4372 crore in March 2019.

The benchmark indices continued trading higher in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 377.22 points or 1.12% at 34,202.75. The Nifty 50 index added 122.45 points or 1.23% at 10,101.55.

Global cues were positive amid gradual reopening of economies. The sentiment was also boosted by Prime Minister Narendra Modi's comment that India's economy would get back on track backed by systematic reforms.

In the broader market, the S&P BSE Mid-Cap index rose 1.34% while the S&P BSE Small-Cap index gained 2.01%. Both these indices outperformed the benchmark Sensex.

The market breadth was strong. On the BSE, 1661 shares rose and 486 shares fell. A total of 121 shares were unchanged. In the Nifty 50 index, 40 shares advanced while 10 stocks declined.

Economy:

The IHS Markit India Services Business Activity Index recorded 12.6 in May. Although the headline figure rose from April's unprecedented low of 5.4, it remained at a level which, prior to the coronavirus pandemic, was unparalleled in over 14 years of data collection and pointed to an extreme drop in services activity across India.

The Composite PMI Output Index, which measures combined services and manufacturing output, signalled a further severe contraction in private sector business activity during May. Posting 14.8, from 7.2 in April, the latest reading was consistent with a further decline in output which was unparalleled prior to the COVID-19 outbreak.

Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said: Service sector activity in India is still effectively on hold, latest PMI data suggest, as output fell at an extreme rate once again during May. Given the stringency of the lockdown measures imposed in India, it is no surprise to see the severity of the declines in April and May.Demand for services, both domestically and overseas, continued to plummet in May as clients' businesses remained closed and footfall remains drastically below normal levels.With economic output set to fall enormously in the first half of 2020, it is clear that the recovery to pre-COVID-19 levels of GDP is going to be very slow.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,498.29 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 441.05 crore in the Indian equity market on 2 June, provisional data showed. Uday Kotak sold 2.8% in Kotak Mahindra Bank for Rs 6,900 crore through block deals on Tuesday.

Cyclone Nisarg:

Cyclone Nisarg intensified into a severe cyclonic storm Wednesday morning, and is expected to cross the Maharashtra coast this afternoon. The storm is likely to make landfall close to Alibagh in Raigad district, which is just over 100 km south of Mumbai.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 63,82,952 far with 3,80,318 deaths. India reported 1,01,497 active cases of COVID-19 infection and 5,598 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty PSU Bank index jumped 4.80% to 1,280.55. The index has added 14% in four sessions while the benchmark Nifty Bank index rose 10.2% during the same period.

IDBI Bank (up 9.84%), Punjab & Sind Bank (up 8.22%), Bank of Maharashtra (up 5.94%), Union Bank of India (up 4.86%), Punjab National Bank (up 4.79%), Indian Bank (up 4.18%), Central Bank of India (up 4.11%), State Bank of India (up 3.82%), Bank of Baroda (up 3.33%), Canara Bank (up 3.31%), Bank of India (up 3.12%), UCO Bank (up 2.48%), United Bank of India (up 1.56%) and Allahabad Bank (up 0.13%) advanced.

Global Markets:

Asian shares rose Wednesday driven by optimism over economies reopening from shutdowns announced earlier to stem the spread of coronavirus.

Japan's services sector activity stayed deep in contraction in May, although the pace of decline moderated from the previous month, as restraining measures put in place over the coronavirus outbreak hurt business activity and the jobs market.

The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 26.5 in May from a record low 21.5 in the previous month.

US stocks ended higher for a second straight day Tuesday. Technology, industrial and health care sector shares accounted for majority of the gains. Energy stocks outperformed the remainder of the market as the price of brent crude rose ahead of a meeting of major oil producers. Bond yields climbed, another indicator of receding pessimism among investors.

Meanwhile, President Donald Trump reiterated threats to deploy military troops across cities facing protests if governors and local officials prove unable to contain violent demonstrations.

Major cities from Los Angeles to New York have been engulfed in nightly protests after George Floyd, a black man, died last Monday following a confrontation with police in Minneapolis in which a white police officer, Derek Chauvin, was captured on video driving his knee onto Floyd's neck until the handcuffed man lost consciousness and later died.

The market came off day's high in morning trade as profit selling emerged at higher levels. The Nifty held above the 10,000 mark. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 343.88 points or 1.02% at 34,169.41. The Nifty 50 index added 115.25 points or 1.15% at 10,094.35.

In the broader market, the S&P BSE Mid-Cap index rose 1.34% while the S&P BSE Small-Cap index gained 1.72%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1525 shares rose and 451 shares fell. A total of 104 shares were unchanged. In the Nifty 50 index, 41 shares advanced while 9 stocks declined.

Buzzing Index:

The Nifty Private Bank index rose 2.54% to 11,561.10, rising for seventh day. The index has added 22.7% in seven sessions.

Bandhan Bank (up 5.43%), ICICI Bank (up 3.73%), Axis Bank (up 3.57%), RBL Bank (up 2.87%), City Union Bank (up 2.26%), HDFC Bank (up 2.25%), Kotak Mahindra Bank (up 2.08%), IndusInd Bank (up 1.4%), Federal Bank (up 1.05%) and Yes Bank (up 0.55%) edged higher.

Earnings today:

Aurobindo Pharma (up 2.21%), BPCL (down 0.47%), Cholamandalam Investment and Finance Company (up 1.05%), Dishman Carbogen Amcis (up 4.93%), DCM Shriram (up 0.38%) and MAS Financial Services (up 4.75%) will announce their quarterly earnings today.

Earnings Impact:

Britannia Industries gained 5.48% to Rs 3,639.30 after the packaged foods maker's consolidated net profit surged 26% to Rs 374.75 crore on 1.6% rise in net sales to Rs 2807.78 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 457.72 crore in Q4 March 2020, rising 1.6% from Rs 449.92 crore in Q4 March 2019.

Net profit was aided by a significant drop in tax expenses. Total tax expenses declined 45.4% to Rs 84.92 crore in Q4 March 2020 from Rs 155.65 crore reported in the same period last year.

Commenting on the performance, Varun Berry, Managing Director, said that on the cost front, the company witnessed moderate inflation in the prices of key raw materials for the bakery business. Commodity prices at global level too witnessed a moderation due to low demand on account of lockdown in most parts of the world.

Zydus Wellness surged 1.88% to Rs 1322 after the company reported a 10.9% rise in consolidated net profit to Rs 69.10 crore on 17.2% rise in net sales to Rs 487.87 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 61.47 crore in Q4 March 2020, rising 24% from Rs 49.48 crore reported in Q4 March 2019. Adjusted EBIDTA was up by 20.9% to Rs 104.60 crore in Q4 March 2020 over Q4 March 2019.

Local stocks extended five-day gains on follow-up buying in index pivotals. The Nifty moved above the psychological 10,000 mark in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 507.24 points or 1.5% at 34,332.77. The Nifty 50 index was up 154.75 points or 1.55% at 10,133.85.

The S&P BSE Mid-Cap index was up 1.27%. The S&P BSE Small-Cap index was up 1.71%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1212 shares rose and 172 shares fell. A total of 52 shares were unchanged.

Stocks in news:

Lupin rose 0.67%. Lupin announced that it has received approval for its Meloxicam Capsules, 5 mg and 10 mg, from the United States Food and Drug Administration (U.S. FDA), to market a generic equivalent of Vivlodex Capsules, 5 mg and 10 mg, of Zyla Life Sciences US, Inc. The product would be manufactured at Lupin's Aurangabad facility, India, and is expected to be launched shortly.

Britannia Industries jumped 6.71% after consolidated net profit surged 26% to Rs 374.75 crore on 1.6% rise in net sales to Rs 2807.78 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 457.72 crore in Q4 March 2020, rising 1.6% from Rs 449.92 crore in Q4 March 2019. Net profit was aided by a significant drop in tax expenses. Total tax expenses declined 45.4% to Rs 84.92 crore in Q4 March 2020 from Rs 155.65 crore reported in the same period last year.

InterGlobe Aviation (IndiGo) surged 4.72%. InterGlobe Aviation reported a consolidated net loss of Rs 870.81 crore in Q4 March 2020 as against consolidated net profit of Rs 595.83 crore in Q4 March 2019. Pre-tax loss stood at Rs 1,289.77 crore in Q4 FY20 as against pre-tax profit of Rs 626.07 crore in Q4 FY19. Net sales during the quarter rose 5.3% YoY (year-on-year) to Rs 8,299.06 crore. Closure of flight operations during national lockdown on account of COVID-19 significantly impacted revenue for the quarter.

Syngene International rose 3.01%. Syngene International has entered into collaboration with HiMedia Laboratories, a bioscience company with expertise in media manufacturing and diagnostics for over 45 years, to manufacture and distribute its ELISA kits. HiMedia will manufacture the kits at its facility in Mumbai and distribute it across India.

Quess Corp gained 5%. Quess Corp said the company has completed the additional acquisition of 25% equity shares in Terrier Security Services (India) (TSSIPL), an associate company of Quess Corp (Quess) from Heptagon Technologies, another associate of Quess. The shareholding of Quess in TSSIPL stands increased from existing 49% to 74%, thereby making TSSIPL a subsidiary of Quess effective 1 June 2020.

Global Markets:

Overseas, Asian stocks were trading higher on Wednesday, with optimism over the reopening of economies as authorities ease coronavirus-induced lockdown measures continuing to keep investor sentiment afloat.

Japan's services sector activity stayed deep in contraction in May, although the pace of decline moderated from the previous month, as restraining measures put in place over the coronavirus outbreak hurt business activity and the jobs market.

The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 26.5 in May from a record low 21.5 in the previous month.

In US, stocks ended higher for a second straight day Tuesday. A restart of business activity from the closures due to the COVID-19 pandemic has been cited as the main reason behind the market's ability to shake off a number of persistent worries of late, including Sino-American tensions and civil unrest in America.

Shares of gun makers and ammunition suppliers soared Tuesday amid the violence in U.S. cities, with Sturm, Ruger & Co. Inc. gaining 4.4%, Smith & Wesson Brands Inc. up 10.1% and Vista Outdoor Inc. advancing 7.5%.

President Donald Trump reiterated threats to deploy military troops across cities facing protests if governors and local officials prove unable to contain violent demonstrations.

Major cities from Los Angeles to New York have been engulfed in nightly protests after George Floyd, a black man, died last Monday following a confrontation with police in Minneapolis in which a white police officer, Derek Chauvin, was captured on video driving his knee onto Floyd's neck until the handcuffed man lost consciousness and later died.

Domestic shares spurted on Tuesday, extended its winning run to fifth straight session. Buying was broad based with private banks in the lead. Sentiment got a boost after Prime Minister Narendra Modi assured industry leaders on Tuesday that India will get its economic growth back and is already on that path with government's various reforms. The barometer S&P BSE Sensex jumped 522.01 points or 1.57% at 33,825.53. The Nifty 50 index gained 152.95 points or 1.56% at 9,979.10. Both these indices have jumped 10.5% each in five sessions.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,498.29 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 441.05 crore in the Indian equity market on 2 June, provisional data showed.

Sentiment got a boost after Prime Minister Narendra Modi assured industry leaders on Tuesday that India will get its economic growth back and is already on that path with government's various reforms.

The rally was broad based. The S&P BSE Mid-Cap index gained 1.13% while the S&P BSE Small-Cap index rose 1.82%.

Buyers outpaced the sellers. On the BSE, shares 1,631 rose and 721 shares fell. A total of 158 shares were unchanged. In Nifty 50 index, 36 stocks advanced while 14 stocks declined.

Buzzing Index:

The Nifty Bank index was up 2.12% to 20,382.75. Bandhan Bank (up 4.64%), IndusInd Bank (up 4.24%), Axis Bank (up 1.7%), ICICI Bank (up 1.58%), HDFC Bank (up 1.23%), IDFC First Bank (up 0.42%) and Federal Bank (up 0.21%) advanced.

Kotak Mahindra Bank surged 6% to Rs 1324.15 on the BSE after the counter witnessed multiple block deals in early trade today, 26 May 2020. The media reported that Uday Kotak, the bank's promoter, sold 2.83% stake worth over Rs 6,800 crore in the bank on Tuesday. In January, Kotak Mahindra Bank and Reserve Bank of India (RBI) had reached an agreement under which Uday Kotak agreed to reduce his stake to 26% by August. Uday Kotak held 29.63% stake in the bank as on 31 March 2020.

On the BSE, the counter clocked a volume of 5.65 crore shares as against its average trading volume of 3.31 lakh shares in the past one quarter. The stock jumped 7.88% to hit a high of Rs 1347.75 on BSE in early trade today. On the NSE, the scrip rose 6.08% to Rs 1,324.25. The counter clocked a volume of 1.23 crore shares compared with its average trading volume of 69.94 lakhs shares in the past one quarter. The stock spurt 7.97% to hit a high of Rs 1,348 on NSE in early trade today.

Stocks in Spotlight:

Strides Pharma Science gained 3.23%after the company said it received US drug regulator's approval for triamcinolone acetonide ointment. The ointment is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid responsive dermatoses. The product is part of the niche and small volume product portfolio with limited competition in the US market.

NCC jumped 5.47% after the company said it received four new orders for Rs 1136 crore in May 2020. The orders were received from state government agencies and do not include any internal orders, the company said in a statement. From the total order win, two orders totaling to Rs 993 crore pertain to water division and two order totaling to Rs 143 crore pertain to building division. The announcement was made after market hours yesterday, 1 June 2020.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.013% compared with previous closing of 6.042% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.36 compared with its previous closing of 75.545.

In the commodities market, Brent crude for August 2020 settlement was up 83 cents to $39.15 a barrel. The contract surged 1.27% to settle at $38.32 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 0.28% to Rs 46,950.

Key indices extended gains and scaled fresh intraday high in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex soared 427.14 points or 1.28% at 33,730.66. The Nifty 50 index rallied 114.65 points or 1.17% at 9,940.80.

Sentiment got a boost after Prime Minister Narendra Modi assured industry leaders on Tuesday that India will get its economic growth back and is already on that path with government's various reforms.

The rally was broad based. The S&P BSE Mid-Cap index rose 1.22% while the S&P BSE Small-Cap index gained 1.77%.

Buyers outpaced the sellers. On the BSE, shares 1,566 rose and 663 shares fell. A total of 148 shares were unchanged. In Nifty 50 index, 37 stocks advanced while 13 stocks declined.

Gainers & Losers:

Kotak Mahindra Bank (up 6.09%), Zee Entertainment Enterprises (up 5.76%), Bajaj Finance (up 5.20%), Bajaj Finserv (up 4.59%) and PowerGrid Corporation of India (up 3.81%) were top gainers in Nifty 50 index.

BPCL (down 1.37%), Maruti Suzuki India (down 1.35%), IOCL (down 1.22%) and JSW Steel (down 1.03%) were top losers in Nifty 50 index.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 62,73,402 far with 3,75,683 deaths. India reported 97,581 active cases of COVID-19 infection and 5,598 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

Prime Minister Narendra Modi while addressing the annual session of the Confederation of Indian Industry (CII), through via a virtual online meeting on Tuesday called for the corporate leaders to take an oath to make India self-reliant. PM Modi shared his vision on 'Getting Growth Back' with representatives of the India Inc. We will take structural reforms that will change course of the country; we will together build self-reliant India. Getting back on track is highest priority for government, he added.

Modi pointed out how reforms like allowing private enterprises into strategic sectors like space and atomic energy, labour reforms, removal of APMC, which will allow farmers freedom to sell their produce freely, etc will all throw up growth prospects.

The Union Cabinet on 1 June 2020 approved minimum support price for 14 kharif crops. The revised prices will provide farmers nearly 50-83% more than the cost. The MSP for paddy has been raised by Rs 53 to Rs 1,868 per quintal for the 2020-21 crop year, adding for jowar MSP at Rs 2,620 per quintal and bajra at Rs 2,150 per quintal. Among other produce, the MSP for cotton has been increased by 50% or Rs 260 to Rs 5,515 per quintal.

The Union Cabinet at its meeting has also approved the changes to the definition of micro, small and medium Enterprises (MSMEs). Raising the turnover limit for medium enterprises to Rs 250 crore, the government aims to broaden the scope of MSMEs. Enterprises with Rs 1 crore investment and Rs 5 crore turnover would now qualify as micro enterprises. Businesses with an investment of less than Rs 10 crore and turnover less than Rs 50 crore will now be classified as small enterprises. The cabinet further provided approval for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs.

Meanwhile, Moody's Investors Service on Monday, 1 June 2020 downgraded India's rating to Baa3 and maintained the negative outlook. Moody's has downgraded India's local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2. The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period. Moody's expects prolonged period of slow growth to continue well beyond the pandemic. India's progress has been hamstrung by tardy implementation of reforms, it said.

Q4 Results Today:

Britannia Industries (up 0.68%), Granules India (up 4.29%) and InterGlobe Aviation (up 0.02%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

Welspun Enterprises hit an upper circuit of 5% at Rs 62.75 after consolidated net profit jumped 200% to Rs 89.08 crore on 35.1% decline in net sales to Rs 470.71 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) surged 46.1% to Rs 89.59 crore in Q4 March 2020 from Rs 61.31 crore reported in Q4 March 2019. Total tax expenses paid declined 98% to Rs 0.51 crore in Q4 March 2020 from Rs 31.68 crore posted in Q4 March 2019. EBITDA declined 18.3% to Rs 74.3 crore in Q4 March 2020 from Rs 91 crore in Q4 March 2019. EBITDA margin improved to 16% in Q4 March 2020 from 12.7% in Q4 March 2019.

V-Guard Industries fell 1.63% after the company's consolidated net profit tumbled 47.1% to Rs 32.18 crore on a 27.4% decline in net sales to Rs 541.14 crore in Q4 March 2020 over Q4 March 2019.

Orient Electric surged 7% to Rs 190.30 on BSE. The company's net profit fell 7.4% to Rs 35.78 crore on a 11.7% decline in net sales to Rs 563.14 crore in Q4 FY20 over Q4 FY19.

Stocks in Spotlight:

Coal India (CIL) fell 3.27% to Rs 143.65 after provisional coal production dropped 11.3% to 41.43 million tonnes (MT) in May 2020 compared with 46.69 MT in May 2019. Provisional coal offtake slipped 23.3% to 39.95 million tonnes (MT) in May 2020 as against 52.1 MT in May 2019.

NMDC rose 1.19% to Rs 85.30. The iron miner's monthly production dropped 24.67% to 2.29 million tonnes (MT) in May 2020 from 3.04 MT in May 2019. The company's monthly sales tanked 24.33% to 2.55 MT in May 2020 as against 3.37 MT in May 2019. On a month-on month (MoM) basis, monthly production jumped 27.22% in May 2020 from 1.80 MT in April 2020. Sales surged 84.78% during the month from 1.38 MT in April 2020.

NCC advanced 4.88% to Rs 26.85 after the company said it received four new orders for Rs 1,136 crore in May 2020. The orders were received from state government agencies and do not include any internal orders, the company said in a statement. From the total order win, two orders totaling to Rs 993 crore pertain to water division and two order totaling to Rs 143 crore pertain to building division. The announcement was made after market hours yesterday, 1 June 2020. Meanwhile, Aditya Birla Sun Life Insurance Company purchased 40 lakh shares, or 0.66% stake, in NCC via bulk deal on NSE on Monday (1 June). Shares were bought at an average price of Rs 25.92 each.

Global Markets:

European markets opened higher while Asian markets extended gains on optimism about an economic rebound from the Coronavirus crisis. Markets started the week with the reopening of several regional economies. Investors also cheered signs of the economy picking up in China, the region's biggest trading partner.

The US equity market finished session higher on Monday, 1 June 2020, as optimism around economic reopening and better than expected US manufacturing data for May. However, market gains capped due to nationwide protests and new trade stresses between China and the US.

Investor sentiments received some support after US manufacturing activity eased off an 11-year low in May, the strongest sign yet that the worst of the economic downturn was behind as businesses reopen. The Institute for Supply Management said its manufacturing index climbed to 43.1 last month from an 11-year low of 41.5 in April. Readings under 50 indicate more companies are shrinking instead of expanding.

However, market gains were somewhat capped due to fears of a resurgence of the coronavirus in the United States following a weekend of riots and protests in the US, including outside the White House, in the wake of the death of African American George Floyd in police custody last week.

Market participants also eyed tensions between the US and China, after Chinese government officials ordered companies to halt imports of US farm products. The purchases were a key component in the two countries' phase-one trade deal. The move came after President Donald Trump on Friday said his administration would take action to respond to China's crackdown on Hong Kong, including removing Hong Kong's preferential trade status with the US and requesting a working group study Chinese companies listed on US stock exchanges for potential unfair financial practices.