The benchmarks indices extended early gains and were trading at day's high in morning trade. Banks stocks were in demand. Sentiment was upbeat as the central government yesterday issued new guidelines for opening up of more activities in areas outside the containment zones.
At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 520.68 points or 1.37% at 38,588.59. The Nifty 50 index was up 139.9 points or 1.24% at 11,387.45.
The broader market underperformed. The S&P BSE Mid-Cap index was up 0.75% while the S&P BSE Small-Cap index was up 0.79%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1366 shares rose and 667 shares fell. A total of 110 shares were unchanged.
The Ministry of Home Affairs (MHA), on 30 September 2020, announced the Unlock 5.0 guidelines, further relaxing curbs on activities outside of containment zones. Cinemas, theaters and multiplexes will be permitted to open with upto 50% of their seating capacity from 15th October, in areas outside the containment zones. For re-opening of schools and coaching institutions, State and Union territories Governments have been given the flexibility to take a decision after 15th October, in a graded manner.
Social, academic, sports, entertainment, cultural, religious, political functions and other congregations have already been permitted with a ceiling of 100 persons, outside containment zones only. In closed spaces, a maximum of 50% of the hall capacity will be allowed, with a ceiling of 200 persons. Wearing of face masks, maintaining social distancing, provision for thermal scanning and use of hand wash or sanitizer will be mandatory.
India reported 9,40,705 active cases of COVID-19 infection and 98,678 deaths while 52,73,201 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Total COVID-19 confirmed cases worldwide stood at 33,880,896 with 10,12,964 deaths.
The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased from 52 in August to 56.8 in September, signalling back-to-back improvements in the health of the sector. Moreover, the latest reading was the highest in over eight-and-a-half years.
India's Eight Core Industries output contracted by 8.5% in August 2020. Contracting for the sixth consecutive month, the output of eight core infrastructure sectors dropped by 8.5% in August, mainly due to decline in production of steel, refinery products and cement. The production of eight core sectors had contracted 0.2% in August 2019, showed data released by the Commerce and Industry Ministry on Wednesday. Barring coal and fertiliser, all sectors crude oil, natural gas, refinery products, steel, cement and electricity recorded negative growth in August.
Shares of Computer Age Management Services (CAMS) were trading at Rs 1457.05 at 10:22 IST on the BSE, a premium of 18.46% over the initial public offer price of Rs 1230. The stock was listed at Rs 1518, a premium of 23.41% to the initial public offer (IPO) price. So far the stock hit a high of Rs 1550 and low of 1306.20. On the BSE, 88.67 lakh shares were traded on the counter so far. The issue opened for bidding on 21 September 2020 and closed on 23 September 2020. The price band for the IPO was set at Rs 1229-1230 per share.
Shares of Chemcon Speciality Chemicals were trading at Rs 627 at 10:26 IST on the BSE, a premium of 84.41% over the initial public offer price of Rs 340. The stock was listed at Rs 730.95, a premium of 114.98% to the initial public offer (IPO) price. So far the stock hit a high of Rs 743.80 and low of 610.35. On the BSE, 9.84 lakh shares were traded on the counter so far. The issue opened for bidding on 21 September 2020 and closed on 23 September 2020. The price band for the IPO was set at Rs 338-340 per share.
The Nifty Metal index rose 1.97% to 2,286.65, bouncing from yesterday's 1.68% decline.
Jindal Steel & Power (up 3.35%), Steel Authority of India (up 2.67%), Tata Steel (up 2.46%), JSW Steel (up 2.27%), Hindalco Industries (up 1.65%), Coal India (up 1.47%), Vedanta (up 1.24%), National Aluminium Company (up 1.24%) and NMDC Ltd (up 0.55%) were top gainers in metal segment.
Stocks in Spotlight:
Bajaj Auto surged 4.11% to Rs 2997.75 after the company's total sales rose 10% to 441,306 units in September 2020 from 402,035 units in September 2019. Bajaj Auto's total domestic sales grew by 6% to 228,731 units while total exports expanded 14% to 212,575 units in September 2020 over September 2019.
Escorts Agri Machinery Segment (EAM) in September 2020 sold 11,851 tractors, highest ever September sales and registering a growth of 9.2% against 10,855 tractors sold in September 2019. While the domestic tractor sales jumped 8.9% to 11,453 units, tractor exports surged 19.2% to 398 units in September 2020 over September 2019. Escorts said that the rural demand continues to remain positive led by lower base of last year, pent-up demand from COVID-19 related lockdowns, and fundamentally positive macroeconomic factors. Timely and widespread monsoon, record rabi crop production, early kharif sowing, and good availability of retail finance have helped drive positive farmer sentiment.