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Barometers advance higher; auto shares correct

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Capital Market
Last Updated : May 31 2021 | 3:17 PM IST

Key equity indices firmed up further in mid afternoon trade. The Nifty was trading above the 15,500 mark. Auto shares corrected after advancing in the past six sessions.

At 14:23 IST, the barometer index, the S&P BSE Sensex, was up 492.43 points or 0.96% to 51,915.31. The Nifty 50 index gained 130.55 points or 0.85% at 15,566.20. The Nifty hit a record high of 15,576.60 in mid-afternoon trade.

The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.28%. The S&P BSE Small-Cap index gained 0.55%.

Buyers outpaced sellers. On the BSE, 1700 shares rose and 1475 shares fell. A total of 200 shares were unchanged.

Investor sentiment improved due to a steady decline in daily COVID-19 cases in India.

India's Monsoon:

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India Meteorological Department (IMD) has said that the onset of monsoon in Kerala is likely to take place by 3 June 2021. Earlier, it had predicted the arrival of monsoon over Kerala by 31 of May 2021.

As per the latest meteorological indications, the south-westerly winds could strengthen further gradually from 1st of June, resulting in likely enhancement in rainfall activity over Kerala. Hence the onset of monsoon over Kerala is likely to take place by 3rd of next month.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 72.5250 compared with its previous closing of 72.4550.

MCX Gold futures for 4 June 2021 settlement rose 0.45% to Rs 48,760.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 90.04.

The yield on 10-year benchmark federal paper fell to 6.023% as compared to its previous close of 6.003%.

In the commodities market, Brent crude for July 2021 settlement rose 88 cents to $69.60 a barrel. The contract increased 0.24% or 17 cents to settle at $69.63 in the previous trading session.

Buzzing Index:

The Nifty Auto index shed 0.32% to 10,476.30. The index had advanced 2.78% in the past six sessions.

Mahindra & Mahindra (down 4.36%), Ashok Leyland (down 0.88%), TVS Motor Company (down 0.77%), Bajaj Auto (down 0.58%) and Tata Motors (down 0.20%) declined.

Meanwhile, Maruti Suzuki (up 1.43%), Eicher Motors (up 1.24%), Hero MotoCorp (up 0.45%) and Bharat Forge (up 0.45%) bucked the trend.

Earnings Impact:

Sundaram Finance rose 0.09% to Rs 2499.90. The NBFC reported 59.8% jump in net profit to Rs 209.20 crore on 6.7% rise in total income to Rs 1017.80 crore in Q4 FY21 over Q4 FY20.

Disbursements for Q4 FY 2020-21 recorded a growth of 13% to Rs 3,305 crore as compared to Rs 2,930 crore registered in the corresponding quarter of the previous year. The assets under the management stood at Rs 30,882 crore as on 31 March 2021 as against Rs 29,936 crore as on 31 March 2020, representing a year-on-year (YoY) growth of 3%.

Gross NPA and Net NPA as on 31 March 2021 stood at 2.28% and 1.35%, respectively when compared to 2.77% and 1.92% as on 31 March 2020. Cost to income closed at 31.8% in Q4FY21 as against 34.9% in Q4FY20. The deposit base stood at Rs 4,021 crore as on 31 March 2021, a net accretion of Rs 345 crore.

Aurobindo Pharma fell 1.07% at Rs 1010.95. On a consolidated basis, the company posted 7.18% decline in net profit to Rs 801.1 crore on 1.18% decline in net sales to Rs 5,991.68 crore in Q4 FY21 over Q4 FY20.

US formulation revenue of Rs 2,856.0 crore in Q4 FY21 from Rs 2,990.3 crore in Q4FY20, registering a decline of 4.5% year on year. Europe formulation revenue stood at Rs 1,552.6 crore in Q4 FY21, a decline of 6% year on year due to stocking up during the pandemic in Q4FY20. Growth markets revenue decreased by 18.8% year on year to Rs 305.7 crore.

ARV revenue stood at Rs 491.2 crore as compared to Rs 381.8 crore, an increase of 28.7% over corresponding previous period. API revenue for the quarter came at Rs 794.3 crore in Q4 FY21 from Rs 755.6 crore in Q4FY20, an increase of 5.1% year on year over corresponding previous period.

Research & Development (R&D) spend stood at Rs 457 crore, a 7.6% of revenues. The drug company received final approval for 9 ANDAs from USFDA including 3 injectables.

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First Published: May 31 2021 | 2:25 PM IST

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