Domestic benchmark equity indices opened flat with negative bias on Friday amid the potential risk from Covid third wave and the commodity price-led inflation. At 10:09am, Sensex was at 52,304.65, down 13.95 points or 0.03%, while Nifty slipped 3.55 or 0.02% to 15,676.45.
M&M, Bajaj Finserv, ICICI Bank, Reliance Industries, and UltraTech Cement were among the top gainers on the Sensex. On the other hand, stocks like Tech Mahindra, TCS, Infosys, HCL Tech and PowerGrid were among laggards.
On the sectoral front, Nifty IT & Nifty Metal were lost 0.52% and 0.17% respectively. On the upside, the Nifty Realty was the top gainer followed by Nifty Auto, Nifty Pharma, Nifty PSU Bank, Nifty Bank and Nifty FMCG.
In the broader market, BSE Midcap lost 0.07%, while BSE Smallcap gained 0.51%. Buyers outpaced sellers in the market as 1,184 shares advanced on the BSE, while 575 stocks and 483 scrips remained unchanged.
“Sustained FII selling and high valuations are the major reasons for the weakness in the market now. It is normal & rationale for FIIs to sell & book profits at the present elevated valuations. HNIs also might be tempted to partially book profits. Since DIIs are getting big inflows they might continue to buy, but the buying is happening mainly in high-quality large-caps with good earnings visibility. Even in the event of a sharp correction in the market, these blue chips will decline only less- proportionately and will bounce back smartly in the next leg of the rally. So, there is safety in large-caps and high risk in many small-caps which are being pushed up by newbie retail investors. A lesson from history is that fundamentally unsound small-caps, the so-called ‘cats & dogs’, run up too much before a big correction,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Reserve Bank of India (RBI) expects bad debts in the Indian banking system to rise steeply by the end of this fiscal year, but at a rate not as alarmingly high as it was anticipated a year ago, and banks this time are better fortified with capital, according to the half-yearly Financial Stability Report (FSR)
Hero MotoCorp said that with the gradual easing of the COVID-19 related restrictions and lockdowns across key markets in the country, the company witnessed a strong rebound in the month of June to sell 469,160 units of motorcycles and scooters. In compliance with the guidelines as prescribed by state and local authorities, almost all of the customer touchpoints of Hero MotoCorp are now operational, with strict safety measures and protocols in place. Heading into the upcoming festive season, the company remains cautiously optimistic about the customer demand in the coming months.
Tata Consultancy Services (TCS) partnered with John Wiley & Sons, an American multinational publishing company, to modernize its e-commerce platform with SAP Commerce, creating a unified, seamless customer experience.
Coal India and its subsidiaries on a provisional basis achieved coal production of 40 million tonnes in June 2021 compared to 39.2 million tonnes in June 2020, recording a growth of 2%. Coal offtake stood at 51.3 million tonnes in June 2021 compared to 41.7 million tonnes in June 2020, recording a growth of 23%.
Lupin Pharmaceuticals, Inc., the U.S. based wholly-owned subsidiary of Lupin announced that the U.S. Food and Drug Administration (FDA) has approved the company’s supplemental New Drug Application (sNDA) to expand the use of SOLOSEC (secnidazole) to include the treatment of trichomoniasis in adults.
NCC has received five new orders totalling Rs 2,149 crore (exclusive of GST) in the month of June 2021. These orders are received from PSU/ Central/ State Government agencies and do not include any internal orders.
Tata Power board has decided to withdraw the amalgamation of Tata Power Solar Systems with the company and accordingly approved the amendment to the Composite Scheme.
Coforge board of directors will meet on July 6 to consider raising funds in one or more tranches by the issuance of equity shares and/or depository receipts and/or other eligible securities.
Overseas, Asia-Pacific stocks are trading mixed on Friday as investors look ahead to a closely watched U.S. jobs report set to be released later.
The S&P 500 reached its sixth consecutive all-time closing high on Thursday, as a new quarter and the second half of the year began with upbeat economic data and a broad-based rally.
The number of Americans applying for unemployment aid fell again last week. The Labor Department reported Thursday that jobless claims dropped by 51,000 to 364,000.
The International Monetary Fund raised its 2021 U.S. growth projection sharply to 7% due to a strong recovery from the COVID-19 pandemic and an assumption that much of President Joe Biden’s infrastructure and social spending plans will be enacted.
The IMF’s latest forecast, marking the fastest U.S. growth pace since 1984, compares with an April projection of 4.6% growth in 2021. The Fund raised its 2022 U.S. GDP growth forecast to 4.9%, up from its previous 3.5% April forecast.