Market Highlights: Sensex ends 362 points higher, Nifty at 11,200; Tata Steel, Infosys top gainers

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Updated: August 6, 2020 4:28:38 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Helped by the Reserve Bank's decision to keep rates unchanged and allow restructuring of MSME debt, equity markets closed with gains. BSE's market capitalization was at Rs 150 lakh crore.

Share Market Today, Share Market LiveApart from Nifty PSU Bank, all sectoral indices ended with gains.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty closed with gains on Thursday morning helped by RBI’s key announcements. S&P BSE Sensex ended 362 points or 0.96% higher at 38,025 points, while the 50-stock Nifty managed to close at the 11,200 mark. Tata Steel was up 3.8%, followed by Infosys, up 2.6% and Bajaj Finance. Bharti Airtel, Mahindra & Mahindra, L&T, and Axis Bank were the other laggards on Sensex. Apart from Nifty PSU Bank, all sectoral indices ended with gains. Nifty IT gained 1.7% while Nifty FMCG and Nifty Metal jumped 1.3%.

Reserve Bank of India’s MPC decided to keep rates unchanged. Repo rate for now will remain and 4% and the reserve repo at 3.55%. The RBI Governor, however, added that stressed MSMEs will be allowed loan restructuring but did not lend clarity on loan moratorium which ends this month. 

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Highlights

    16:27 (IST)06 Aug 2020
    Sensex, Nifty end with gains; total market capitalization of BSE firms back to pre-covid levels

    Sensex and Nifty regained momentum and ended Thursday's trading session higher, helped by RBI's announcements regarding loan restructuring. S&P BSE Sensex ended 362 points or 0.96% higher at 38,025 points, while the 50-stock Nifty managed to close at the 11,200 mark. With the Nifty 50 closing at 11,200 mark, analysts say there could be further upside in the coming sessions. IT Companies and Banking stocks helped lift the Indices higher today. Apart from Nifty PSU Bank, all sectoral indices ended with gains. Nifty IT surged 1.7% while Nifty FMCG and Nifty Metal gained 1.3% each.

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    16:07 (IST)06 Aug 2020
    Extension in loan moratorium would have helped lower, middle-income groups

    RBI kept key rates unchanged citing high inflation, the retail inflation for June was above the 6% mark. The central bank has already slashed rates by 115 bps this year, and still to see full rate transition. Additional liquidity support of Rs 10,000 cr, especially Rs 5,000 cr via National Housing Bank will make funding easy for housing finance companies and boost demand. Ample system liquidity and lower rates are necessary to boost demand and credit offtake. The industry was expecting a further extension for loan moratorium to help recovery as a large part of the country is opening up for business and need liquidity support. An extension in the Loan moratorium would have helped lower and middle-income groups to better manage their finances. Growth recovery in rural areas has been robust as per RBI's estimates, would expect a similar recovery Pan-India: Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra)

    15:56 (IST)06 Aug 2020
    Allowing restructuring of loans for stressed MSMEs will help lending banks, small businesses

    The central leaving the key rates unchanged was very much on expected lines, key rates were slashed by 115 bps in 2020 and yet to see a full transmission. Inflation hovering near the 6% mark is worrisome as the RBI mandate is to keep rates in the range of 2-6%. The policy stance kept 'Accommodative' signals the central bank's intent to cut rates in the near future if the need arises. Measures like additional liquidity support, loan restructuring will help the industry with easy access to credit. Ample system liquidity, availability of credit at affordable rates is imperative for recovery. Allowing restructuring of loans for stressed MSMEs will help lending banks as well as small businesses. A robust loan restructuring policy is required to keep bad loans and the health of banks in check: Nish Bhatt Founder & CEO, Millwood Kane International

    15:45 (IST)06 Aug 2020
    MSME loan restructuring will help many companies which are still in distress

    The RBI has kept the repo rate unchanged at 4% while continuing the basic accommodative stance of the policy in response to the objective of revival of growth. It was widely expected that the RBI was likely to continue with the pause till there is greater visibility on the inflation front. At this juncture, It’s definitely a wise move to fuel liquidity instead of a further rate cut. A sentiment upswing will follow among developers and buyers alike given the infusion of additional liquidity to NABARD and National Housing Bank. The MSME loan restructuring will help many companies which are still in distress due to the lockdown: Ram Raheja, Director at S Raheja Realty

    15:38 (IST)06 Aug 2020
    Nifty closes at 11,200 mark BSE Market Capitalization recovers

    BSE's market capitalization has reached Rs 150 lakh crore which is where it stood at the end of February. Sensex ended 362 points higher.

    15:28 (IST)06 Aug 2020
    Rupee ends flat on Thursday

    Indian rupee ended the session where it started after the central bank kept interest rate unchanged. RBI said the inflation will stay elevated until September before easing and national output will shrink this year, dragged bonds and currency lower. Earlier today, Bank of England also kept rate unchanged but the pound is on the front foot after the BOE’s reiteration that it will cease bond purchases by year-end. Taken together with the unanimous vote to keep the bond-purchase target at GBP745 billion, it feeds into the market’s view that barring another quick downturn further QE may not be needed, which is bound to be supportive of sterling. Rupee expected to trade in broad range of 75.50 to 74.50 in near term: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

    15:19 (IST)06 Aug 2020
    Demand for gold loans to increase?

    "This is a progressive step and should increase the demand for gold loans. This will put more money in the hands of the borrower. The increase in LTV Ratio will help us to grow the book. While this move will help broaden the gold loan market, we will also witness an increased competition in this segment.  Lenders will need to ensure that their valuation and risk management processes remain tight and robust.” CVR Rajendaran, CEO & MD, CSB Bank

    15:16 (IST)06 Aug 2020
    Nifty Smallcap 50 trades flat

    While the benchmark indices were trading with gains, Nifty smallcap 50 was trading flat. The index Stocks like Bata India, Natco Phar, Escorts, and Adani Gas were seen pulling the index down.

    15:02 (IST)06 Aug 2020
    Cargill invests $15 million to set up plant for cattle supplements in Maharashtra

    US food major Cargill on Thursday said it has invested USD 15 million (around Rs 112 crore) to set up a plant in Maharashtra to manufacture health and nutrition supplement bypass fat for dairy cattle. Cargill India, which posted a revenue of USD 1.2-1.3 billion last year, has opened a high-pressure hydrogenation plant in Kurkumbh to manufacture bypass fat. The commercial production of supplement has already started and will be marketed under the global brand Carfe.

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    14:44 (IST)06 Aug 2020
    Tata Consumer products share price up 8%

    Share price of Tata Consumer products surged 8% on Thursday, a day after the compnay reported robust quarterly results. "Factoring in the better-than-expected performance and margin expansion in the India F&B segment, we have increased our earnings estimates for FY21/22E by 30%/22% and arrived at an SOTP-based TP of INR560/share. Maintain Buy," said brokerage and reserach firm Motilal Oswal. 

    14:30 (IST)06 Aug 2020
    Gold trades in unchartered territory

    Gold, the safe-haven asset, the yellow metal, the go-to asset for investors in times of uncertainty has been on a ride with absolute returns of more than 34% 2020 YTD. Low yields in the US treasuries, low-interest rates and massive amount of liquidity pushed by major central banks across the globe has resulted in euphoria for the yellow metal. For the first time in the past 10 years, gold prices in the international markets have touched all-time highs of $2050 per ounce while on the MCX, gold futures have been trading at Rs.55,500 mark the lifetime highs for the yellow metal and trades in unchartered territory: Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

    14:27 (IST)06 Aug 2020
    One time restructuring of corporate loans announcement bode well for the equity markets

    The rationale behind the MPC deciding to keep rates on hold would be to preserve some firepower in case economic conditions worsen. Exhausting all ammunition at this point would have stretched monetary policy to the limits of its effectiveness and the MPC seems to be wary of letting that happen. One time restructuring of corporate loans announcement bode well for the equity markets. Most action is in 5y OIS which has got heavily paid by around 10-12 bps: Abhishek Goenka, Founder and CEO, IFA Global

    14:26 (IST)06 Aug 2020
    Policy takes cognizance of economic realities around growth and inflation

    What was needed from the RBI this time around was a reaffirmation of the accommodative policy, which the RBI has done very explicitly. The liquidity management is also being done pro-actively which would help the short- term rates to remain stable to lower. The policy takes cognizance of the economic realities around growth and inflation and has adopted a pragmatic approach to the resolution of important issues: Joseph Thomas, Head of Research - Emkay Wealth Management

    14:25 (IST)06 Aug 2020
    Interim breather for Real Estate sector

    Today’s announcement by the RBI Governor is welcome as it addresses one of the long-standing requests by the real estate sector. The loan resolution plan, which allows for payment moratorium up to 2 years, for corporate and personal borrowers should provide a breather to stressed real estate developers and individual borrowers in the housing segment alike. We look forward to the recommendations of the Kamath Committee on the details for the real estate segment. We also welcome the announcement of further liquidity infusion to the tune of INR 5000 Crores to National Housing Board (NHB) which should be able to provide some relief during these times of crisis: Shishir Baijal, Chairman & Managing Director, Knight Frank India

    14:24 (IST)06 Aug 2020
    Debt restructuring would be beneficial for both banks and borrowers in near-term

    The Aug’20 monetary policy announcements have been in line with expectations – no change in any policy rate (we expected 25 bps cut in reverse repo rate) and the announcement of a loan restructuring scheme. The details about loan restructuring would be worked out by the Kamath Committee. The policy delivers support to a large range of sectors including NBFCs, HFCs, corporate debt market, debt MF, agriculture and backward districts (for priority sector loans). Increase in LTV for gold loans is another significant step. While we have to wait for the fine prints on debt restructuring, the step would be beneficial for both banks and borrowers in the near-term. The longer-term implication for banks, however, is less clear: Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers

    14:15 (IST)06 Aug 2020
    RBI’s dynamic, proactive, and balanced approach is in line with our expectations

    The RBI kept policy rates unchanged and announced an accommodative monetary policy stance during today’s meet. With inflation expected to remain high owing to intermittent regional and local lockdowns leading to supply-side disruptions, the RBI has opted for status quo. The RBI’s dynamic, proactive, and balanced approach is in line with our expectations that the Central Bank will be looking at alternate measures such as forward guidance and maintain sufficient liquidity: Rumki Majumdar, Economist, Deloitte India

    13:57 (IST)06 Aug 2020
    "Current level of rates in the system are benign enough," Amar Ambani, YES SECURITIES

    "Not surprisingly, The RBI’s MPC unanimously held status quo on rates. Current level of rates in the system are benign enough to allow for a pause. Cumulative rate cuts since Feb 2019 were also accompanied by sharper cut in reverse Repo as well as lowered level of CRR, in previous policy announcements. As the US Fed kept rates unchanged, it enabled us to retain our rates at current levels, which also helps lure foreign capital. The pause allowed RBI an opportunity to monitor upside risks to food inflation and cost push pressures from rise in fuel prices. More importantly, the RBI Governor addressed liquidity concerns in Covid crisis for housing, MSMEs, flow of credit in corporate bond markets and facilitating improved platform and system for banks. We see scope for further 50 basis points drop in rates from current level. The policy will be seen as a positive for banking sector since no extension of moratorium, one-time restructuring allowed with strict conditions, a veteran banker in Mr KV Kamath to lead the expert committee and allowing secured loans through Gold as collateral with higher LTVs," said Amar Ambani, Senior President and Head of Research – Institutional Equities, YES SECURITIES.

    13:51 (IST)06 Aug 2020
    One of the major announcements today was with regard to raising LTV for gold

    "RBI acted judiciously by keeping the rates unchanged. The surplus liquidity in the banking sector and expectation of inflation rate to remain at the elevated levels in Q2FY21 guided RBI’s decision. One of the major announcements was with regard to raising LTV for gold from 75 percent to 90 percent. This would be beneficial to the Indian households in the wake of rising gold prices," said Deepthi Mary Mathew, Economist at Geojit Financial Services.

    13:46 (IST)06 Aug 2020
    Financials, banks, realty stocks gain up to 9% after RBI MPC keeps policy rates unchanged; auto stocks fall

    BSE Sensex surged over 500 points to top 38,200 points after Reserve Bank of India (RBI) Governor Shaktikanta Das announced to keep the repo rate and reverse repo rate unchanged at 4 per cent and 3.35 per cent, respectively. Read full story

    13:26 (IST)06 Aug 2020
    Bank stocks surge post MPC

    Banking and finance stocks are surging post the RBI MPC. RBI Governor said that stressed MSME debt could be allowed restructuing. Bajaj Finance, ICICI Bank and HDFC Bank were the top Sensex gainers.

    13:24 (IST)06 Aug 2020
    Lessons from Franklin Templeton: RBI liquidity helping mutual funds stabilise, says Shaktikanta Das

    The Reserve Bank of India’s liquidity measures have been helping the mutual fund industry stabilise after the Franklin Templeton credit funds fiasco, Governor Shaktikanta Das said on Thursday. In a virtual media address post the RBI Monetary Policy Committee’s decision to keep repo rate unchanged, Shaktikanta Das explained how the central bank’s efforts in the past few months have been taking shape. In April Franklin Templeton announced its decision to wind-up six debt mutual fund schemes citing liquidity issues post which RBI had announced measures to improve liquidity. The six funds include; Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.

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    12:20 (IST)06 Aug 2020
    Mutual funds recovering after the Franklin Templeton fiasco

    RBI Governor said that the Mutual Fund industry is recovering after the Franklin Templeton fiasco that saw the fund house wind-up six debt mutual fund schemes.

    12:18 (IST)06 Aug 2020
    NBFC now have access to liquidity at reasonable cost

    RBI's measures have paved the way for the struggling non-banking finance companies to now have access to liquidity at reasonable cost, RBI Governor Shaktikanta Das said.

    12:14 (IST)06 Aug 2020
    Inflation to be elevated, MPC believes

    The Reserve Bank of India MPC expects headline inflation to be elevated in the second quarter of this fiscal year.

    12:10 (IST)06 Aug 2020
    Repo rate stays at 4%

    The repo rate to remain at 4% and the reverse repo will stay at 3.35% as the MPC decided to keep the rates unchanged after delivering a 115 basis point cut since the pandemic aided lockdown began.

    12:07 (IST)06 Aug 2020
    Monetary Policy Committee keeps reverse repo unchanged

    RBI's MPC has kept the reverse repo rate also unchanged alogn with the repo rate.

    12:06 (IST)06 Aug 2020
    RBI leave repo rate unchanged

    The Rserve Bank of India's MPC has left the repo rate unchaged in its meet that started on August 4 and ended today.

    12:01 (IST)06 Aug 2020
    BirlaSoft Ltd shares surge 15.33%

    IT Consulting and software company Birlasoft Ltd's shares surged over 15% on Sensex today. The firm reported a net profit of Rs 56.3 crore in the April-June quarter, up from Rs 41.8 crore in the same period last year.

    11:37 (IST)06 Aug 2020
    Hindustan Zinc share price hits fresh 52-week high today; stock nearly doubles from March lows

    Hindustan Zinc share price rallied over 8 per cent to hit a fresh 52-week high of Rs 236 apiece, taking the total market capitalisation to Rs 97,203.46 crore. It has surpassed its previous high of Rs 225 apiece touched in October last year. The stock has climbed over 93 per cent from March lows of Rs 122 per share.

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    11:14 (IST)06 Aug 2020
    Federal Bank to hike stake in IDBI Federal Life Insurance

    The Federal Bank said that it has entered into an agreement to purchase an additional 4% stake in IDBI Federal Life Insurance Co Ltd., from IDBI Bank at a price not exceeding Rs.27.56 per equity share. The transaction will see Federal Bank increase its stake in IDBI Federal Life to 30%. 

    10:57 (IST)06 Aug 2020
    Canara Bank advances grew 3.3%; moratorium at 22%

    "Canara Bank reported a mixed set of numbers, advance grew 3.3% YoY sequentially marginally declined. PAT at Rs.406cr vs loss of Rs.605cr for the same quarter previous years. Moratorium Book at 22%. NIM at 2.84% which improved YoY and QoQ, CASA increased 240bps to 33.8%, Deposit grew 4.56% YoY, and marginally improved QoQ. Key monitorable for Canara bank would be moratorium number at the end of Aug, and when the return on equity improves," Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking

    10:27 (IST)06 Aug 2020
    Dollar buying by RBI likely to prevent any sharp appreciation

    Weakness in the DXY and persistent inflows of about $1.3 bn so far in the Indian capital market could limit the losses in rupee to 75.20-30 levels. Also, inflows ahead of HDFC’s QIP worth Rs 14,000 cr can remain supportive for the pair. On the other side, dollar buying by RBI is likely to prevent any sharp appreciation caused by inflows. Hence, the pair is likely to remain confined to its range of 74.50-75.50 levels for few more sessions: Amit Pabari, managing director, CR Forex Advisors

    10:26 (IST)06 Aug 2020
    Focus today will be on RBI Monetary policy

    We see the below 2 scenarios: Scenario 1 - Repo rate cut/measures to facilitate transmission: Positive for Equities (Nifty could rally towards 11500), Positive for bonds (10y 5.65-5.70%), Stronger Rupee 74.50-74.75), Lower forwards. Scenario 2 - No cut, concerns expressed over inflation: Negative for Equities (Nifty towards 10500) and Bonds sell-off (10y at 5.95-6%), USDINR tests upper end of 74.50-75.50 range. Paying in forwards: Abhishek Goenka, Founder and CEO, IFA Global

    10:25 (IST)06 Aug 2020
    Focus on the RBI monetary policy, 25 bps cut widely anticipated

    Focus will be on the RBI monetary policy today. A 25bps cut is widely anticipated. This would push the repo rate lower to 3.75% and the Reverse repo rate to 3.10%. The repo-reverse repo corridor could be widened to disinsentivize banks from parking funds with the RBI and to encourage them to lend instead. More than the cut, the tone of the policy statement and regulatory measures to facilitate transmission would be in focus: Abhishek Goenka, Founder and CEO, IFA Global

    10:24 (IST)06 Aug 2020
    HDFC share price gains over 1.5% on mega Rs 14,000 crore QIP launch; stock rallies 22% since March

    Housing Development Finance Corporation (HDFC) share price gained over 1.5 per cent to trade at day’s high of Rs 1,804.85 apiece after the company informed that it has launched a mega qualified institutional placement (QIP) to raise Rs 14,000 crore on Wednesday. The committee of directors in a meeting approved and declared the opening of the issue. Read full story

    10:17 (IST)06 Aug 2020
    Sensex, Nifty add to opening gains; ONGC, TCS top gainers, Mindtree hits fresh 52-week high

    Sensex and Nifty marched higher on Thursday morning defying the negative global cues. While Sensex gained 193 points or 0.52% the 50-stock Nifty crossed the 11,150 mark. “The Nifty has opened around the 10200 level and we need to see if it can get past that level on a closing basis. Only then can we think on the bullish side. Until then traders can use a favourable risk is to reward ratio trade and go short at current levels with a stop above 10200 and a target of 10800,” said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.

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    09:26 (IST)06 Aug 2020
    Sensex and Nifty open with gains

    Sensex gained 193 points or 0.52% on opening while the 50-stock Nifty crossed the 11,150 mark. Only four of the thirty BSE Sensex cpnstituents were trading with losses on Thursday morning.

    09:09 (IST)06 Aug 2020
    Sensex gains 283 points in pre-opening session

    Sensex jumpe d283 points in the pre-open session with Reliance Industries and Tata Steel leading the pack. 

    09:06 (IST)06 Aug 2020
    Stocks in focus: HDFC, Vodafone Idea, HPCL, Adani Power, Lupin, banking and auto stocks

    Lupin, Hindustan Petroleum Corporation Ltd, Adani Enterprises, Adani Power, Vodafone Idea, BASF India, Bayer Cropscience, Blue Star, Dalmia Bharat, Deepak Nitrite, Embassy Office Parks REIT, Honeywell Automation, Indian Hotels, JK Tyre, Lemon Tree Hotels, Whirlpool of India, are among companies that scheduled to announce their quarterly earnings today.

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    08:53 (IST)06 Aug 2020
    DLF reports net loss of Rs 72 crore as Covid hits business

    Real estate developer DLF on Wednesday posted a consolidated net loss of Rs 72 crore for the June FY21 quarter as the nationwide lockdown due to Covid-19 disrupted construction schedules as well as adversely impacted mall operations. The developer had reported a net loss of Rs 1,867 crore in Q4FY20 due to a one-time exceptional provision and a one-time DTA reversal on adoption of a lower-tax rate.

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