Share markets in India have extended early gains and are presently trading higher, tracking mixed global cues.
The BSE Sensex is trading up by 231 points, up 0.6%, at 38,100 levels. Meanwhile, the NSE Nifty is trading up by 75 points.
The BSE Mid Cap index is trading up by 1.1%. The BSE Small Cap index is trading up by 0.8%.
On the sectoral front, gains are largely seen in the healthcare sector and the energy sector.
IT stocks, on the other hand, are witnessing selling pressure.
Speaking of the current stock market scenario, have a look at the chart below which shows how the BSE Sensex and the smallcap index have moved over the past one year:
The markets are coming out of the deep fall. An important driver of this rally is the increasing inflow from foreign institutional investors now that the global economies have opened the liquidity trap.
A lot of this money is coming to the mid and small cap space.
Moving on, the rupee is trading at 74.70 against the US$.
Gold prices are trading up by 0.5% at Rs 50,305 per 10 grams. Domestic gold prices surged to record high, tracking firm global rates.
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In news from the banking sector, Yes Bank is among the top buzzing stocks today.
Stock of the private lender nosedived 20% in early trade today, taking its losing streak to the fourth straight session. The scrip had huge sell orders in the Rs 14.60-14.80 range on BSE, but no buyers.
In the past two weeks, the stock has declined around 45% from a level of Rs 26.65 touched on July 9.
Yes Bank shares came under pressure ahead of the listing of its fresh equity shares allotted in follow-on public offer (FPO). The shares are expected to list on Friday.
The stock has been on a falling spree ever since the bank concluded its Rs 150 billion follow-on public offer (FPO), even as Moody's feel the capital raising by the bank is credit positive.
Moody's said the fundraising would strengthen the core capital and loss-absorbing buffers, besides reducing default risks for creditors.
The FPO had attracted bids for 8,47,12,49,000, which was 93% of the issue size of 9,09,97,66,899 shares. For an FPO to sail through, a minimum of 90% of the issue needed to be subscribed.
Yes Bank has stated in its prospectus that the funds raised via FPO will be used for growth and expansion including enhancing its solvency, capital adequacy ratio, and evolving regulatory requirements.
Yes Bank was rescued by a Reserve Bank-led bailout plan under which SBI picked up 49% equity in the private sector lender.
The bank had earlier entered into an underwriting agreement with SBICap, wherein the latter agreed to underwrite Rs 30 billion at a price equal to or the lowest end of the price band.
Yes Bank share price is presently trading down by 13%.
Moving on to news from the chemicals sector, shares of Rallis India surged 6% to hit fresh a record high of Rs 325 on the BSE after the company's consolidated net profit in the April-June, 2020 quarter jumped 53% to Rs 920 million.
During the same quarter last year, the company's PAT stood at Rs 600 million.
The Tata Group company's consolidated revenue grew 6% to Rs 6.6 billion for the quarter under review as against Rs 6.2 billion in the same quarter of FY20.
"We have registered a 13.5% revenue growth during Q1 for domestic crop care business on account of robust demand and a 3% revenue growth in seeds sales over the previous year despite the challenges faced," the company's Managing Director and CEO Sanjiv Lal said.
The company reported an EBITDA (earnings before interest, tax, depreciation, and amortization) of Rs 1.3 billion compared with Rs 950 million, logged in Q1FY20.
As regards to Covid-19, the company said it had above 90% adherence to supply plans despite COVID-19-induced lockdown and labor issues.
In the April-June quarter, ace investor Rakesh Jhunjhunwala had bought an additional 725,000 equity shares of the company.
His combined holding in the Tata Group company has increased to 10.31% in June quarter and is at the highest level since March 2016 quarter.
Rallis share price is presently trading up by 2.2%.
Moreover, market participants are tracking specialty chemical company Rossari Biotech, which listed at Rs 670 per share, a premium of 58% against the issue price of Rs 425 per share.
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