The Sensex and the Nifty ended a volatile session with tepid losses on Tuesday. PSU banks and pharma stocks tumbled. Rising coronavirus cases across the globe spooked investors. The barometer S&P BSE Sensex declined 45.72 points or 0.13% at 34,915.80. The Nifty 50 index fell 10.30 points or 0.10% at 10,302.10.

The Nifty opened higher 10,382.60 and traded in a narrow range in morning session. The index traded sideways throughout the day with decent gains till afternoon session. Selling emerged in mid-afternoon trade, which dragged the index to the day's low of 10,267.35. The index regained 10,300 mark in late trade.

In the broader market, the BSE Mid-Cap index slipped 0.14% and the BSE Small-Cap index skid 0.75%. Both these indices underperformed the Sensex.

The market breadth was negative. On the BSE, 1,287 shares rose and 1,476 shares fell. A total of 137 shares were unchanged.

COVID-19 update:

Total COVID-19 confirmed cases worldwide stood at 1,03,02,867 far with 5,05,518 deaths. India reported 2,15,125 active cases of COVID-19 infection and 16,893 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economic Data:

India's fiscal deficit in the first two months through May stood at Rs 4,66,343 crore, or 58.6% of the budgeted target for the current fiscal year, government data showed. Net tax receipts during April-May period were Rs 33,850 crore, while total expenditure was Rs 5,11,841 crore, the data showed.

PM Modi's Address to the Nation:

Prime Minister Narendra Modi addressed the nation at 4 pm today. Modi announced that free rations under PM Garib Kalyan Anna Yojana will be extended till end November 2020 for 80 crore Indians at a cost of Rs 90,000 crore.

Unlock 2 Guidelines:

The Union government on Monday night issued guidelines for the month-long 'Unlock 2' - the phased re-opening of activities that were barred to contain the coronavirus spread in the country. Under the new guidelines, social/ political/ sports/ entertainment/ academic/ cultural/ religious functions and other large congregations remain prohibited. Metro Rail services shall remain shut and cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars, auditoriums, assembly halls and similar places will also not be allowed to open. All activities apart from those prohibited will be allowed outside containment zones.

Lockdown will remain in force in COVID-19 containment zones till 31 July 2020 and district authorities to demarcate zones, according to the guidelines. Night curfew will remain in force between 10 pm and 5 am throughout country, except for essential activities. Unlock 1 ends on 30 June 2020 and Unlock 2 will be in force from 1 to 31 July 2020.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 5.888% compared with 5.903% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 75.51, compared with its close of 75.58 during the previous trading session.

In the commodities market, Brent crude for August 2020 settlement fell 67 cents at $41.04 a barrel. The contract rose 69 cents, or 1.68% to settle at $41.71 a barrel in the previous trading session.

Foreign Markets:

Most European markets were trading higher while Asian markets closed higher on Tuesday buoyed by overnight gains on Wall Street and better-than-expected data from China.

China's factory activity expanded at a faster pace in June as the economy continued to recover after the government lifted strict lockdowns and ramped up investment. The official manufacturing Purchasing Manager's Index (PMI) rose to a three-month high of 50.9 in June 2020 from 50.6 in May 2020, above the 50-point mark that separates growth from contraction on a monthly basis.

Meanwhile, Japan's industrial production in May 2020 dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country's Ministry of Economy, Trade and Industry.

The US stock market finished session sharp higher on Monday, 29 June 2020, as investors chased for bargain hunting after a steep sell-off last Friday, thanks to better-than-estimated economic data which helped to overshadow concern over an increase in coronavirus cases.

The Pending Home Sales Index, an advance look at home sales based on signed purchase and sale agreements, fell 5.1% in May 2020 compared to the same month last year, according to data from the National Association of Realtors (NAR). When compared to April of 2020, the news was much better. Pending sales increased by 44.3% last month after two consecutive months of decline, NAR reported.

Meanwhile, many U.S. states are reportedly returning to previous restrictions following a surge in new coronavirus cases in the country last week. As many as 36 states have reported large number of new cases in the past week.

Federal Reserve Chairman Jerome Powell said the outlook for the US economy is "extraordinarily uncertain" and the success of the recovery effort will depend in large part on the country's ability to contain the spread of the coronavirus.

Buzzing Index:

The Nifty Pharma index fell 1.49% to 9,985.15. The index has fallen 2.04% in three sessions.

Wockhardt (down 3.74%), Glenmark Pharmaceuticals (down 3.7%), Cadila Healthcare (down 3.66%), Strides Pharma (down 3.05%), Aurobindo Pharma (down 2.25%), Sun Pharmaceutical Industries (down 1.84%), Divi's Labs (down 1.64%), Lupin (down 1.38%), Dr Reddy's Laboratories (down 0.85%), Cipla (down 0.78%), GlaxoSmithkline Pharmaceuticals (down 0.62%) and Ipca Laboratories (down 0.47%) tumbled.

The Nifty PSU Bank index fell 1.76% to 1,427.90. The index has fallen 5.01% in two sessions.

Indian Bank (down 3.43%), Union Bank of India (down 2.6%), Bank of Maharashtra (down 1.78%), Punjab National Bank (down 1.7%), Bank of India (down 1.51%), Bank of Baroda (down 1.42%), Canara Bank (down 1.32%), UCO Bank (down 1.2%) and State Bank of India (down 0.5%) declined.

Central Bank of India tumbled 11.35% after the bank reported net loss of Rs 1,529.07 crore in Q4 March 2020 compared with a net loss of Rs 2,477.41 crore in Q4 March 2019. Total income rose 1.6% to Rs 6,723.73 crore in Q4 FY20 over Q4 FY19. The bank reported pre-tax loss of Rs 1,661.09 crore in Q4 FY20, lower than pre-tax loss of Rs 3,214.99 crore in Q4 FY19. The company received total tax write back of Rs 132.02 crore in Q4 FY20, lower than tax write back of Rs 737.58 crore in Q4 FY19. The Q4 result was announced after trading hours on Monday (29 June).

Earnings Impact:

Tata Steel advanced 1.68%. The steel major reported a consolidated net loss (from continuing operations) of Rs 1,236 crore in Q4 March 2020 as against net profit of Rs 2,353 crore in Q4 March 2019. Turnover declined 20.40% to Rs 33,770 crore in Q4 FY20 from Rs 42,424 crore in the same period last year. The result was announced after market hours yesterday, 29 June 2020. The company reported an exceptional loss of Rs 3,406 crore in Q4 FY20 on the back of impairment of non-current assets and loss on preference share investments. Profit before exceptional items stood at Rs 1,906.40 crore in Q4 FY20, declining 55% from Rs 4,241.01 crore in Q4 FY19. Tata Steel received a tax rebate of Rs 263.28 crore in Q4 FY20 as against total tax expense of Rs 1,899.06 crore in Q4 FY19.

Raymond declined 3.40% after consolidated a net loss of Rs 69.10 crore in Q4 March 2020 compared with net profit of Rs 67.70 crore in Q4 March 2019. Consolidated net sales dropped 29.31% to Rs 1,278.65 crore in Q4 FY20 over Rs 1,808.71 crore in Q4 FY19. Topline and profitability was impacted due to COVID-19 and channel stock correction in branded apparel segment. The primary sale of March was impacted especially for the wedding season of April to June 2020. The sales for the good wedding season was completely wiped off. Overall topline impact was Rs 414 crore and EBITDA impact was Rs 134 crore. In Q1 FY21, the company has raised Rs 145 crore through NCDs at market benchmarked rates.

Petronet LNG fell 1.81% after consolidated net profit dropped 19.80% to Rs 373.20 crore on 2.19% rise in net sales to Rs 8,567.15 crore in Q4 March 2020 over Q4 March 2019. The board has recommended a final dividend of Rs 7 per equity share for the year 2019-20.

Bharat Electronics (BEL) rose 1.60% after consolidated net profit jumped 74.27% to Rs 1,046.97 crore on 49.18% increase in total revenue from operations to Rs 5,816.77 crore in Q4 FY20 over Q4 FY19. BEL's order book stood at Rs 51,970 crore as of 1 April 2020. The company received a total order of Rs 13,200 crore during fiscal year 2019-2020. It exported $48.59 million during FY19-20.

Stocks in Spotlight:

Ruchi Soya Industries hit a lower circuit limit of 5% to Rs 1360.40. With reference to news item published on 30 June 2020 quoting "Patanjali may reverse merge Patanjali Ayurved with Ruchi Soya", Ruchi Soya Industries clarified to the bourses on Tuesday (30 June) that the news is factually incorrect.

Shilpa Medicare rose 1.82%. The drug maker on Tuesday (30 June) launched the Indian branded generic of Axitinib, an tyrosine kinase inhibitor drug with a brand name Axishil. The drug is available as 1 mg & 5 mg tablets in pack of 14 tablets in one bottle. It is used to treat patients suffering from advanced renal cell carcinoma (RCC). Currently the monthly therapy cost of innovator is approximately Rs 1.66 lakh and with the launch of Axishil, monthly cost of treatment will be reduced to Rs 14,940.