The Indian benchmark equity indices - Sensex and Nifty - ended higher on Monday, tracking mixed cues from global markets. The BSE Sensex ended 141 points higher at 38,182, and NSE Nifty rose 60 points to settle at 11,274. On Friday, Sensex ended 15 points higher at 38,040 and Nifty gained 13 points to 11,214. Among the index heavyweights, M&M was the top gainer, rising nearly 5 per cent, followed by L&T, Kotak Bank, SBI, Bajaj Finance, Sun Pharma, ITC and HDFC duos. On the flip side, Maruti Suzuki, Reliance Industries, Asian Paints, Tata Steel and Nestle India were among top losers.
On the sectoral front, BSE Healthcare was the top gainer, closing 4.7 per cent higher on the back of a slew of upbeat pharma earnings reports, followed by capital goods, realty and industrials space. Nifty pharma index too gained 694 points intraday to reach 12,027 against previous close of 11,333. Divi's Labs and Cipla reported better-than-expected Q1 earnings which took their stocks to fresh 52-week highs.
"Sectoral news flow boosted positivity in the Indian markets with pharma index leading the gains. The gains were news driven, with earnings results and government actions accounting for sectoral gains. Earnings results of select pharma companies drove gains in the sector while government actions to boost domestic defence productions helped gains in defence stocks. With valuations going high, investors are advised to remain cautious and nimble with their investments," said Vinod Nair, Head of Research at Geojit Financial Services.
Here's what you need to know before share market opens on August 11.
As many as 31 companies will announce their June quarter earnings on August 11, 2020. The list includes Ashoka Buildcon, Bajaj Electricals, Bosch, Central Bank of India, Motherson Sumi Systems, Symphony and Usha Martin. The June quarter earnings reports will provide a clear picture of the economic disruption caused by the COVID-19 pandemic induced lockdown.
Index of Industrial Production (IIP)
The central government is scheduled to release factory output or IIP growth data for June on August 11. In May, the country's industrial output declined by 34.7 per cent, albeit at a slower pace compared to April 2020, where the index had contracted by 57.6 per cent, as per data released by the Ministry of Statistics & Programme Implementation.
Progress on COVID-19 vaccine
Stock market investors will keep an eye on developments on the coronavirus pandemic front, like updates on vaccine trials. According to the latest update on the coronavirus vaccine, Russia is set to register its first COVID-19 vaccine on August 12. The clinical trial data and other documents of Russia's COVID-19 vaccine, which has been jointly developed by Moscow's Gamaleya Institute and the Russian Defence Ministry, are currently under expert review. The decision on registration will be made based on its results, according to the Russian health ministry.
Meanwhile, World Health Organisation (WHO) has urged countries to join its COVID-19 Vaccine Global Access (COVAX) facility, a mechanism designed to guarantee rapid, fair and equitable access to COVID-19 vaccines worldwide. The COVAX facility aims to deliver two billion doses of safe, effective vaccines that have passed regulatory approval by the end of 2021.
Movement in Brent crude and currency market
Investors will also keep a track on oil price movement and the rupee's trajectory against the US dollar. Crude oil futures edged higher on August 10 as traders increased their long positions as demand rose amid opening of economies. Meanwhile, Indian rupee closed higher against US dollar on Monday after positive opening, tracking positive cues from domestic equities.
COVID-19 cases are continuously rising around the world, which is forcing economies to reconsider restrictions to contain the spread. India reported a single-day spike of 62,064 cases on Monday, taking COVID-19 tally past 22 lakh. As per the Health Ministry's data, there are a total of 22,15,075 coronavirus cases, including 6,34,965 active cases and 15,35,744 cured. The death toll climbed to 44,386 with 1,007 more fatalities. This is the fourth consecutive day that the COVID-19 cases have increased by more than 60,000.
Cues from global stocks
Globally, markets in the Unites States and Europe were trading higher on Monday as investor sentiments were boosted by US President Donald Trump's decision to unilaterally extend joblessness benefits amid the coronavirus pandemic-led economic crisis.
Stock specific movements
Shares of Titan Company will remain in focus after the Tata Group company reported first quarter earnings report post market hours on Monday. The watch-to-jewellery maker posted a standalone net loss of Rs 270 crore for the first quarter ended June 30, 2020, against a profit of Rs 371 crore in the year-ago period. Total income of the company fell by 62 per cent to Rs 1,901 crore during the first quarter this year, as against Rs 4,996 crore in the corresponding quarter last year, due to the complete loss of sales in April. Only limited numbers of stores were operational during May and June in wake of coronavirus pandemic.
Bank of Baroda reported a net loss of Rs 864 crore for the first quarter ended June 30, 2020, on account of higher provisions. The public sector bank had registered a net profit of Rs 710 crore in the corresponding quarter last year and Rs 507 crore in March quarter. "On account of provisioning on standard accounts of Rs 1,811 crore, bank reported a (standalone) net loss of Rs 864 crore in Q1 FY21 and consolidated net loss stood at Rs 679 crore," Bank of Baroda said in a filing to the Bombay Stock Exchange post market hours on Monday.