Barometers continued to trade near day's high with decent gains in afternoon trade. Buying was broad based with pharma, autos and metals advancing. At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 227.5 points or 0.6% at 38,099.02. The Nifty 50 index added 70.6 points or 0.63% at 11,203.20.

Reliance Industries (up 1.72%), HDFC Bank (up 1.23%), Kotak Mahindra Bank (up 2.05%) and ITC (up 2.25%) were major index movers.

In the broader market, the S&P BSE Mid-Cap index surged 0.95% while the S&P BSE Small-Cap index added 0.65%. Both these indices outperformed the Sensex.

The market breadth was strong. On the BSE, 1384 shares rose and 1092 shares fell. A total of 157 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,665.57 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,138.83 crore in the Indian equity market on 22 July, provisional data showed.

COVID-19 Update:

India reported 4,26,167 active cases of COVID-19 infection and 29,861 deaths while 7,82,606 patients have been cured, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 14,951,347 with 616,550 deaths so far, according to data from Johns Hopkins University.

New Listing:

Shares of Rossari Biotech were trading at Rs 721.95 at 13:10 IST on BSE, a premium of 69.8% over the initial public offer price of Rs 425. The stock debuted at Rs 670, a premium of 57.65% to the initial public offer (IPO) price. So far the stock hit a high of Rs 724.15 and low of Rs 663.55 on BSE.

The IPO of Rossari Biotech was subscribed 79.37 times. The issue opened for bidding on 13 July 2020 and closed on 15 July 2020.

Earnings Today:

Biocon (up 0.12%), HDFC AMC (down 0.21%), Dish TV(up 0.91%), AU Small Finance Bank (up 3.3%), MphasiS (down 1.03%), ABB India (up 1.08%), PNB Housing Finance (up 2.22%), Radico Khaitan (up 3%), Bank of Maharashtra (up 1.98%) and Zensar Technologies (up 4.53%) will announce their quarterly earnings today.

Earnings Impact:

Rallis India gained 1.72% after the agrochemical maker reported 35.58% rise in consolidated net profit to Rs 91.87 crore on 6.85% rise in total income to Rs 674.45 crore in Q1 June 2020 over Q1 June 2019. Profit before tax (PBT) before exceptional items surged 38% to Rs 120 crore in Q1 June 2020 over Q1 June 2019.

ICICI Securities rose 2.17% after consolidated net profit surged 69.7% to Rs 193.08 crore on 35.9% jump in total income to Rs 546.40 crore in Q1 June 2020 over Q1 June 2019. The revenue was aided by strong growth in equities & allied business. The profit was boosted by growth in revenue, improvement in margins and changes in statutory tax rates. Profit before tax (PBT) soared 47.4% to Rs 259.39 crore in Q1 June 2020 as against Rs 176 crore in Q1 June 2019. Current tax expense for the quarter gained 27% at Rs 69.38 crore as against Rs 54.63 crore in Q1 June 2019. The result was announced post trading hours yesterday, 22 July 2020.

HeidelbergCement India down 2.89% after standalone net profit tumbled 38.1% to Rs 48.94 crore on 30.2% decline in net sales to Rs 406.27 crore in Q1 June 2020 over Q1 June 2019. Lower current tax expenses arrested the decline in the company's overall profitability. EBITDA margin stood at 26.7% in Q1 FY21 as against 27.1% in Q1 FY20. Sales volume slipped 31.9% to 857 kilo tonne (KT) in Q1 FY21 as against 1,258 kilo tonne (KT) in Q1 FY20, primarily driven by the suspension of operations in April 2020. On a per tonne basis, gross realization increased by 2.4% whereas total operating cost (incl. freight) were higher by 1.8% resulting in EBITDA of Rs 1,264 per tonne as compared to Rs 1,253 per tonne in Q1 FY20.

Stocks in Spotlight:

Vodafone Idea up 1.06% after the media reported that the Supreme Court directed the Income-Tax department to refund Rs 833 crore to the telecom company. The refund is for the 2014-15 assessment year.

Glenmark Pharmaceuticals gained 1.92% after the company announced top-line results from phase 3 clinical trial of favipiravir in patients with mild to moderate COVID-19.

Future Retail hit a lower circuit of 5% at Rs 100.60 after the company missed a repayment of interest on 5.60% senior secured USD notes due 2025. The company said it is in the process of ensuring that payment of the interest is made within a 30-day grace period.

SpiceJet jumped 4.64% after the budget air carrier said it was designated as Indian scheduled carrier to operate on agreed services between India and the USA.

Global Markets:

European market opened higher while Asian markets were mixed on Thursday. The Dow Jones Futures were trading 87 points higher, indicating a decent start in US markets today. Concerns over rising US-Sino tensions continued to mount. Markets in Japan were shut on account of Marine Day.

South Korea's central bank released advanced estimates of the country's gross domestic product for the three months that ended in June. Growth declined 3.3% for the quarter compared with the prior three months that ended in March and was down 2.9% from last year, Bank of Korea said. While private consumption rose 1.4% as people spent more on durable goods, exports dropped 16.6% due to declines in motor vehicles as well as coal and petroleum products.

The US stock market finished session higher on Wednesday, 22 July 2020, as investors took heart from better than expected second-quarter earnings reports and news of coronavirus vaccine deal between the US government and Pfizer and BioNTech. However, market gains capped amid simmering US-China tension after the U.S. State Department abruptly ordered China to close its consulate in Houston.

Shares of Pfizer rose more than 5%. BioNTech's U.S.-listed shares gained 13.7% after the US government agreed to pay the drugmaker Pfizer and partner BioNTech $1.95 billion to secure produce 100 million doses of their experimental Covid-19 vaccine if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement.

In the latest deterioration in Sino-U.S. ties, the United States ordered China to close its consulate in Houston, saying it was “to protect American intellectual property and Americans' private information.” China strongly condemned the move, and it was reportedly considering shutting the U.S. consulate in Wuhan in retaliation.