The benchmark stock indices gave opened the day with slight losses after the significant gains posted yesterday.
The woes of the telecom sector seem to continue with Vodafone-Idea reporting a five-fold rise in losses in Q1.
Join us as we follow the top business news through the day.
US 10-year bond yield turns negative
Sensex, Nifty end flat on muted global cues
It was a day of choppy trading for stocks.
PTI report: "Domestic equity benchmarks Sensex and Nifty ended flat on Friday as muted cues from global markets and spiking COVID-19 cases in the country kept investors on the edge.
After touching a low of 37,787.38 during the day, the BSE Sensex settled just 15.12 points or 0.04 per cent higher at 38,040.57.
Similarly, the NSE Nifty rose 13.90 points or 0.12 per cent to finish at 11,214.05.
Asian Paints was the top gainer in the Sensex pack, spurting over 4 per cent, followed by Bajaj Finance, Bajaj Finserv, IndusInd Bank and Maruti.
On the other hand, Titan, HCL Tech, Infosys, Sun Pharma and M&M were among the laggards.
According to traders, market sentiment turned choppy tracking weak cues from global indices amid reports that the Trump administration was considering a proposal to crackdown on Chinese companies listed in the US.
Spiking COVID-19 cases too kept investors jittery, they said.
Registering over 60,000 cases in 24 hours for the first time, India’s COVID-19 tally galloped past 20 lakh on Friday.
The number of cases around the world linked to the disease has crossed 1.9 crore.
Bourses in Shanghai, Hong Kong and Tokyo ended in the red, while Seoul finished with gains.
Stock exchanges in Europe were trading on a negative note in early deals.
Global oil benchmark Brent crude was trading 0.86 per cent lower at USD 44.70 per barrel.
On the currency front, the rupee ended almost flat at 74.93 against the US dollar."
Uber lost $1.8 billion in 2Q as riders stayed home
Uber lost $1.78 billion in the second quarter as the pandemic carved a gaping hole in its ride-hailing business, with millions of people staying home to reduce the spread of the coronavirus .
Its food delivery business grew as more people ordered in, but that growing part of its business didn’t turn a profit.
The San Francisco-based ride-hailing giant brought in $2.24 billion in revenue during the second quarter, down 27% from the same time last year, on a constant currency basis, the company said Thursday.
Uber’s mobility business, which includes ride-hailing and micro-mobility options such as scooters and bikes, saw its revenue shrink to $790 million, down 67% from $2.38 billion a year ago.
Oil slips to $45 on demand concerns, set for weekly rise
The oil rally continues despite some corrective action today.
Reuters reports: "Oil dipped to around $45 a barrel on Friday on worries that a demand recovery would slow due to a resurgence of coronavirus cases, although a pledge from OPEC member Iraq to cut oil output further in August lent support.
The resurgence of infections remains a key issue for the market and demand outlook. Tallies show cases in the United States are rising in a number of states. India reported on Friday a record daily jump in infections.
Brent crude fell 13 cents, or 0.3%, to $44.96 by 0820 GMT. U.S. West Texas Intermediate (WTI) crude also slipped 13 cents to $41.82.
Traders were also watching talks in the United States over the next coronavirus stimulus package. Democratic leaders in the U.S. Congress and top aides to President Donald Trump failed to make substantial progress on Thursday.
“Hopes are still running high for another round of fiscal stimulus,” said Stephen Brennock of oil broker PVM. “Failure to extend aid would deal a massive blow to the recovering U.S. economy and the fragile oil demand outlook.”
Brent and WTI are set for weekly gains of around 4%. Prices have recovered from lows reached in April, when Brent slipped below $16, a 21-year low, thanks in part to a record deal on supply cuts by OPEC and its allies.
Saudi Arabia's energy minister and his Iraqi counterpart stressed their countries' full commitment to the deal, Iraq's state news agency said on Friday.
Iraq has been a laggard in fully meeting its pledge.
Over the week, a weaker U.S. dollar helped support prices by making the commodity more attractive to buyers holding other currencies.
The dollar index, up on Friday, is expected to weaken ahead of U.S. non-farm payrolls figures later on Friday that is forecast to show job creation slowed in July."
Apple shines in pandemic with $2 trillion value on horizon
The initial spread of the novel coronavirus shut down the factories in China that assemble its iPhones and also closed its retail stores in a country that ranks as the company’s biggest market besides the U.S. Things looked even bleaker in March after the global pandemic shoved the U.S. economy into what now looks to be its deepest downturn since the Great Depression nearly a century ago.
Since then, Apple has managed to shine amid the gloom, putting it on the cusp of becoming the first U.S. company to boast a market value of $2 trillion, just two years after it became the first to reach $1 trillion. With its stock already up 50% this year, the only question among analysts is whether Apple will pass the $2 trillion milestone before the release of its next-generation iPhones in October.
What is the true value of gold?
Vodafone Idea shares plunge nearly 8% on Q1 loss
The telecom major's woes continue as secular trends put pressure on its balance sheet.
PTI reports: "Shares of Vodafone Idea on Friday tumbled nearly 8 per cent after the company reported widening of net loss to Rs 25,460 crore in the June quarter.
The stock plunged 7.39 per cent to Rs 7.64 on the BSE in early trade.
On the NSE, it cracked 7.87 per cent to Rs 7.60.
Vodafone Idea, after market hours on Thursday, reported widening of net loss to Rs 25,460 crore in the June quarter after it made additional provisioning to pay past statutory dues, and said its ability to continue as going concern hinges on the Supreme Court allowing more time to pay dues.
The nation’s third-largest telecom operator had a net loss of Rs 4,874 crore in April-June 2019 and Rs 11,643.5 crore in the preceding March quarter.
It had reported a net loss of Rs 73,878 crore in full 2019-20 fiscal.
VIL’s revenue from operations came in at Rs 10,659.3 crore for the first quarter of FY 2021, sliding 5.4 per cent from the year-ago period.
The fiscal’s first quarter numbers were impacted by nationwide lockdown. VIL said that the availability of recharges due to store closure and ability of customers to recharge on account of economic slowdown were “impacted” during the “challenging quarter”.
The gross additions were “severely impacted” by closure of retail stores during the nationwide lockdown resulting in subscriber base falling to 279.8 million in June quarter from 291.1 million in March quarter.
VIL’s Q1 average revenue per user (ARPU) - a key metrics for telcos - took a hit and fell to Rs 114 from Rs 121 in the previous sequential quarter, the declines presenting a stark contrast to Reliance Jio and Airtel, both of which recorded ARPU gains during the quarter."
Yes Bank shares jump 5% as LIC hikes stake
More good news for equity investors in Yes Bank.
PTI reports: "Shares of Yes Bank on Friday rose 5 per cent after LIC acquired close to 5 per cent shareholding in the bank by purchasing shares from the open market.
The company’s stock jumped 4.97 per cent to Rs 14.14 -- its upper circuit limit -- on the BSE.
On the NSE, it gained 4.83 per cent to Rs 14.10.
With the fresh acquisition, the holding of LIC has increased from 0.75 per cent to 4.98 per cent, Yes Bank said in a regulatory filing.
LIC purchased 105.98 crore shares, reflecting 4.23 per cent stake, of the bank from the open market, the filing said.
Prior to this, LIC had 0.75 per cent stake in Yes Bank through 19 crore shares held. In all, it said, LIC’s holding in the bank increased to 4.98 per cent through 125 crore shares held. The period of acquisition is between September 21, 2017, and July 31, 2020, it said.
Earlier this week, Moody’s Investors Service upgraded Yes Bank’s long-term foreign currency issuer rating by a notch to “B3” from “Caa1” after a Rs 15,000-crore capital raising. Despite the upgrade, Yes Bank still remains under non-investment grade.
Obligations rated ‘B’ are considered speculative and are subject to high credit risk, while those rated ‘Caa’ are judged to be speculative of poor standing and are subject to very high credit risk."
Gold smashes record high as safety rush intensifies
Safe-haven demand continues to propel gold to new highs.
Reuters reports: "Gold smashed a record high on Friday as a safety rush fuelled by the worsening coronavirus pandemic and its mounting economic toll gathered pace and put bullion on track for its longest weekly winning streak in nearly a decade.
Spot gold was up 0.3% at $2,069.78 per ounce by 0308 GMT after hitting an all-time high of $2,072.50 in early trade. It has added 4.7% so far this week in what would be its ninth straight weekly gain. U.S. gold futures rose 0.6% to $2,081.60.
Silver too continued its stellar run. It rose as much as 3.1% to $29.84, adding nearly 19% so far this week in what would be its best week since 1987.
“It's difficult to hold anything but a constructive view (on gold),” said ING analyst Warren Patterson.
“Whilst the pace of the rally may slow, there certainly does seem to further upside in the near term, and for the remainder of the year.”
Surging COVID-19 cases in the United States have dampened hopes for a nascent economic recovery and weighed on rival safe-haven dollar. The greenback was headed for its seventh consecutive weekly decline.
Gold is likely to hover around $2,020-2,080 an ounce in the near term, said National Australia Bank economist John Sharma.
“The key factor will be how this virus plays out, and whether there is any progress on vaccines,” he added.
Benchmark 10-year U.S. Treasury yields were at five-month lows, making the non-interest bearing bullion an attractive investment, and helping it rise more than 35% so far this year.
The next focus is closely-watched U.S. employment data, due at 1230 GMT, which is expected to show a payroll increase of 1.58 million in July, compared to 4.8 million in the previous month.
“A below consensus number could provide another boost for gold,” ING's Patterson said.
Elsewhere, platinum dropped 2.1% to $976.72 an ounce and palladium fell 0.6% to $2,208.82."
Debt resolution plan to help borrowers, lenders: bankers
The central bank’s debt resolution plan for corporate and personal loans has been welcomed by analysts, bankers and corporates.
Under the facility, lenders can go for a one-time restructuring of loans under stress due to the pandemic.
The move will help soften the impact on both banks as well as borrowers on the twin dimensions of controlling a rise in NPAs and supporting credit flow, said Krishnan Sitaraman, senior director, Crisil.
“The relaxations permitted, subject to certain conditions being fulfilled, will limit the rise in NPAs in the banking system in the near to medium term,” he said.
FAANMG stocks are now worth $7 trillion
Rupee edges 4 paise lower to 74.98 against US dollar in early deals
A slight gain in the rupee even as stocks witness a fall.
PTI reports: "The rupee traded marginally lower at 74.98 against the US dollar, down 4 paise, in early deals on Friday due to emergence of demand for the American currency from banks and importers.
At the foreign bank exchange, the domestic unit opened on a weak note and went on to touch a low of 75.04 before staging a quick mild recovery, though still trading in the red.
The Indian currency had ended steady on Thursday after the RBI decided to maintain a status quo in its policy rates.
Keeping interest rates unchanged to help tame inflation, the central bank decided to continue with the accommodative stance of monetary policy as long as necessary to revive growth.
Analysts, however, are of the view that the Reserve Bank expecting the inflation at elevated levels until September before easing and economic growth to shrink would exert pressure on the forex market in the near term.
Meanwhile, the US dollar index, which gauges the value of the greenback against a basket of key global currencies, rose 0.32 per cent to 93.08.
Foreign investors infused Rs 637.43 crore on a net basis into Indian equities on Thursday, exchange data showed.
Global crude oil benchmark Brent was trading marginally lower at USD 45.08 a barrel.
On the domestic equities front, the BSE Sensex was down 75.60 points or 0.20 per cent at 37,949.85; while the NSE Nifty traded 11.70 points or 0.10 per cent lower at 11,188.45."
Facebook employees to work from home until July 2021, get $1,000 for home offices
Facebook Inc will allow employees to work from home until July 2021 due to the coronavirus outbreak and will give them $1,000 for home office needs, a spokesperson for the social media giant said on Thursday.
The company joins other big technology firms that have taken similar steps recently.
Late in July, Alphabet Inc's Google said it would allow employees who do not need to be in the office to work from home until the end of June 2021 , while Twitter Inc had proposed remote work indefinitely for some of its employees.
“Based on guidance from health and government experts, as well as decisions drawn from our internal discussions about these matters, we are allowing employees to continue voluntarily working from home until July 2021”, a Facebook spokesperson said in an emailed statement.
Sensex drops over 200 points in opening trade; Nifty below 11,200
A slight correction this morning in stocks after yesterday's gains.
PTI reports: "Benchmark Sensex dropped over 200 points in early trade on Friday, dragged by losses in HDFC Bank, Infosys and ICICI Bank amid weak cues from global markets.
After falling to 37,787.38 points in opening session, the BSE Sensex was trading 151.50 points or 0.40 per cent lower at 37,873.95; while the NSE Nifty was down 32.95 points or 0.29 per cent at 11,167.20.
HCL Tech was the top laggard in the Sensex pack, shedding over 1 per cent, followed by HDFC twins, Infosys, Sun Pharma, ICICI Bank and Kotak Bank.
On the other hand, Asian Paints, UltraTech Cement, Bajaj Finserv, IndusInd Bank and TCS were among the gainers.
In the previous session, the Sensex had ended 362.12 points or 0.96 per cent higher at 38,025.45, while the broader Nifty had jumped 98.50 points or 0.89 per cent to finish at 11,200.15.
Exchange data showed that foreign institutional investors bought equities worth Rs 637.43 crore on a net basis on Thursday.
According to traders, market sentiment turned negative tracking weak cues from other Asian indices amid reports that the Trump administration is considering a proposal to crackdown on Chinese companies that are listed in the US.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading in the red.
Wall Street, meanwhile, ended on a positive note in overnight session.
Global oil benchmark Brent crude was trading 0.33 per cent lower at USD 44.94 per barrel."
Voda-Idea loss widens fivefold
Vodafone Idea Ltd. (VIL) first-quarter consolidated net loss widened to ₹25,460 crore from a net loss of ₹4,874 crore in the year-earlier period.
Revenue declined 5.42% to ₹10,659 crore, impacted by the nationwide lockdown, the company said.
It reported strong data volume growth of 10.6%, the highest in the last six quarters while data usage per broadband subscriber increased to 13 GB per month.
The company had embarked upon new cost optimisation initiatives to drive further organisational efficiencies and targets to achieve ₹4,000 crore in annualised operational expenditure savings over the next 18 months. “We continue to make progress on our strategy with integration largely complete, enabling us to realise cost synergies well ahead of our initial targets,” said Ravinder Takkar, MD and CEO. “We have launched a cost optimisation initiative that will drive further cost savings. We also continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges.”
