Key benchmark indices are trading higher in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 200.02 points or 0.38% at 52,523.35. The Nifty 50 index was up 42.55 points or 0.27% at 15,733.95. Asian stocks are trading mixed.

The S&P BSE Mid-Cap index was down 0.14%. The S&P BSE Small-Cap index was up 0.37%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1606 shares rose and 793 shares fell. A total of 81 shares were unchanged.

Meanwhile, lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12% in the June quarter as against 23.9% contraction in the same quarter in 2020, report issued by a foreign broker stated.

The economy had its worst contraction on record in FY21 at 7.3% as the two-and-half months of unplanned lockdown announced by the centre with just a four-hour notice had crippled the economy in the first quarter with a massive 23.9% contraction, which improved to -17.5% in the second quarter, it added.

Stocks in news:

Power Grid Corporation of India fell 1.3%. The company's board has recommended issue of bonus shares in the ratio of 1:3 i.e. one bonus share for every three shares held.

Power Grid Corporation of India reported 6.42% rise in consolidated net profit to Rs 3,526.23 crore on 5.73% fall in total income to Rs 10,870.57 crore in Q4 FY21 over Q4 FY20.

Shares of SBI Cards and Payment Services fell 5.01% to Rs 998.25. CA Rover Holdings is reportedly offering up to 4.8 crore shares at a price range of Rs 1,002 to Rs 1,041.30 in an accelerated bookbuild.

Adani Transmission rose 1.27%. Adani Transmission said that the company has incorporated a Wholly Owned Subsidiary company in the name of “ATL HVDC Limited” on 16th June, 2021 for transmission, distribution and supply of power and other infrastructure services relating thereto.

Novartis India fell 2.25%. Novartis India reported 43.07% rise in standalone net profit to Rs 9.70 crore on 9.76% rise in total income to Rs 111.56 crore in Q4 FY21 over Q4 FY20.

Natco Pharma declined 0.71%. Natco Pharma reported 43.68% fall in consolidated net profit to Rs 53.00 crore on 24.62% fall in total income to Rs 359.70 crore in Q4 FY21 over Q4 FY20.

Tube Investments of India gained 3.4%. Tube Investments of India reported 141.91% rise in consolidated net profit to Rs 143.84 crore on 168.22% rise in total income to Rs 2,814.21 crore in Q4 FY21 over Q4 FY20.

Mangalam Organics rose 0.33%. Mangalam Organics announced that CRISIL has upgraded and reaffirmed its rating and outlook for various credit facilities of the company.

Global Markets:

Overseas, Asian stocks are trading mixed on Friday following an overnight drop for the Dow Jones Industrial Average on Wall Street. Looking ahead, the Bank of Japan is expected to release its statement on monetary policy on Friday, including its interest rate decision.

In US, the Dow Jones Industrial Average fell for a second day as investors digested the Federal Reserve's latest policy update, in which it moved up its timeline for interest rate hikes and forecast higher inflation. Afresh bout of rotation from cyclical stocks pushed the tech-heavy Nasdaq gauge to another record.

The number of Americans applying for unemployment benefits rose last week for the first time since April despite widespread evidence that the economy and the job market are rebounding steadily from the pandemic recession.

The Labor Department said on Thursday that jobless claims rose 37,000 from the week before to 412,000.

Back home, domestic equity benchmarks ended a volatile session with modest losses on Thursday. The barometer index, the S&P BSE Sensex, lost 178.65 points or 0.34% to 52,323.33. The Nifty 50 index fell 76.15 points or 0.48% to 15,691.40.

Foreign portfolio investors (FPIs) sold shares worth Rs 879.73 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 45.24 crore in the Indian equity market on 17 June, provisional data showed.

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