The domestic equity barometers ended with almost flat with some negative bias on Wednesday. The Nifty closed above the 16,250 mark. Metal shares bounced amid value buying.
As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 28.73 points or 0.05% to 54,525.93. The Nifty 50 index lost 4.10 points or 0.03% to 16,276.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index lost 0.22%. The S&P BSE Small-Cap index declined 0.83%.
Sellers outnumbered buyers. On the BSE, 1065 shares rose and 2136 shares fell. A total of 131 shares were unchanged.
The broader market extended recent losses after the Bombay Stock Exchange (BSE) on Monday said it was capping the rise in share price of stocks exclusively listed on its platform.
BSE, however, clarified in a circular on Wednesday that the said framework is applicable to BSE-exclusive securities in groups viz. X, XT, Z, ZP, ZY, Y. Also, securities should have a price of Rs 10 and more (as on review date) and the market capitalization the security should be less then Rs 1,000 crore. Accordingly, the shortlisted securities, shall have 6 monthly, 1 yearly, 2 yearly and 3 yearly price band in place of weekly, monthly, quarterly price band. These price restrictions will discourage price manipulation leading to less volatility.
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COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 20,40,28,771 with 43,14,631 deaths. India reported 3,86,351 active cases of COVID-19 infection and 4,29,179 deaths while 3,12,20,981 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 38,353 new cases in last 24 hours. India has administered 51.90 crore vaccine doses so far under nationwide vaccination drive. India's active caseload currently 3,86,351, which is lowest in 140 days. Active cases constitute 1.21% of total cases, lowest since Mar 2020. Current recovery rate is 97.45%.
Economy:
The Department of Expenditure, Ministry of Finance has released 5th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to the States on 9th August, 2021. With the release of this installment, a total amount of Rs 49,355 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year.
Politics:
The Lok Sabha on Tuesday passed the Constitution (127th) Amendment Bill to restore the states' power to make their own OBC lists. The bill was passed in Lok Sabha with 385 members voting in support and no opposition to it. The opposition parties decided to "cooperate" with the government in passing the bill and suspend their protest in the House. It was moved by social justice and empowerment minister Virendra Kumar, who termed it as historic legislation that 671 castes in the country would benefit from it.
Primary Market:
The initial public offer of Aptus Value Housing Finance received bids for 1.71 crore shares as against 5.51 crore shares on Wednesday (11 August 2021), according to stock exchange data at 15:20 IST. The issue was subscribed 0.31 times.
The initial public offer of Chemplast Sanmar received bids for 88.41 lakh shares as against 3.99 crore shares on offer on Wednesday (11 August 2021), according to stock exchange data at 15:20 IST. The issue was subscribed 0.22 times.
These two IPO opened for bidding on Tuesday (10 August 2021) and will close on Thursday (12 August 2021).
Meanwhile, the initial public offer of CarTrade Tech received bids for 19.53 crore shares as against 1.29 crore shares on offer on Wednesday (11 August 2021), according to stock exchange data at 15:20 IST. The issue was subscribed 15.06 times.
The initial public offer of Nuvoco Vistas Corporation received bids for 8.71 crore shares as against 6.25 crore shares on offer on Wednesday (11 August 2021), according to stock exchange data at 15:20 IST. The issue was subscribed 1.39 times.
These two IPO opened for bidding on Monday (9 August 2021) and will close today (11 August 2021).
Buzzing Index:
The Nifty Metal index rose 3.08% to 5,744.90. The index declined 4.59% in the past two sessions.
Vedanta (up 6.58%), SAIL (up 5.85%), National Aluminum Co. (up 5.17%), Jindal Steel & Power (up 4.88%), Tata Steel (up 3.80%), JSW Steel (up 3.62%), Ratnamani Metals Tubes (up 3.01%), Welspun Corp (up 2.90%), Hindustan Zinc (up 2.15%), Hindalco Industries (up 2.11%), NMDC (up 1.90%) and Coal India (up 1.23%) advanced.
APL Apollo Tubes (down 1.28%), Adani Enterprises (down 0.79%) and MOIL (down 0.75%) declined.
Earnings Impact:
Cadila Healthcare fell 2.32% at Rs 564.40. On a consolidated basis, the drug major posted a 29% rise in net profit to Rs 587 crore on 15% rise in revenue from operations to Rs 4025 crore in Q1 FY22 over Q1 FY21.
Cadila said year on year growth in revenue was driven by strong growth in India geography partially offset by US geography. The company's India business which comprises human formulations and consumer wellness business which contributed to 50% of consolidated revenues during the quarter, witnessed a very strong growth of 43% on a YoY basis, posting sales of Rs 1943 crore during the quarter. The company's business in the US posted sales of Rs 1451 crore. The company's rest of the world business grew by 17% during the quarter on a YoY basis and posted sales of Rs 277 crore.
Indoco Remedies added 0.95% to Rs 442.85. The company's consolidated net profit surged 132.75% to Rs 39.66 crore in Q1 FY22 as against Rs 17.04 crore in Q1 FY21. Revenue from operations rose 43% YoY to Rs 381.43 crore during the period under review.
Ambika Cotton Mills jumped 9.59% to Rs 1530. The company posted a 615% jump in net profit to Rs 35.84 crore on 89% rise in revenue from operations to Rs 187.53 crore in Q1 FY22 over Q1 FY21. On a sequential basis, net profit increased 23.7% while revenue from operations fell 4.28% in Q1 FY22 over Q4 FY21.
Trent slumped 4.52% at Rs 904.30. The company posted a standalone net loss of Rs 83.76 crore in Q1 FY22 compared with net loss of Rs 139.46 crore in Q1 FY21. Net sales jumped 240% to Rs 327.29 crore in Q1 FY22 as against Rs 96.33 crore in Q1 FY21.
Siemens jumped 6.50% to Rs 2193.45. The company reported a consolidated net profit of Rs 138.90 crore in Q3 June 2021 as against a net loss of Rs 1.90 crore in Q3 June 2020. Net sales increased by 147.2% YoY to Rs 2,880.90 crore during the quarter.
Power Grid Corporation of India rose 2.20% to Rs 176.15. The company reported a sharp spurt in consolidated net profit to Rs 5,998 crore in Q1 FY22 as compared to Rs 2,048 crore in Q1 FY21. Consolidated net sales grew 8% to Rs 10,216 crore in Q1 FY22 from Rs 9,457 crore registered in Q1 FY21.
Godrej Agrovet tumbled 4.69% to Rs 646.80. On a consolidated basis, Godrej Agrovet's net profit rose 4.13% to Rs 104.75 crore on 28.22% jump in total revenue from operations to Rs 1,992.78 crore in Q1 June 2021 over Q1 June 2020.
Zomato jumped 7.76% to Rs 134.65. The food delivery firm posted a consolidated net loss of Rs 356.2 crore in Q1 FY22, higher than the net loss of Rs 99.8 crore in Q1 FY21. The company's net sales jumped 217% year on year to Rs 844 crore in Q1 FY22 over Q1 FY21. Zomato posted a pre-tax loss of Rs 359 crore in Q1 FY22, higher than pre-tax loss of Rs 99.8 crore in Q1 FY21. Hyperpure losses expanded in Q1 FY22 due to investments in growth, the company said.
"Adjusted revenue grew by 26% quarter-over-quarter (QoQ) to Rs 1160 crore; year-over-year (YoY) growth is irrelevant (and unnaturally high) here since Q1FY21 was severely impacted by the first wave oflockdowns in 2020," Zomato said in a release.
"Revenue growth was largely on the back of growth in our core food delivery business which continued to grow despite the severe COVID wave starting April. On the other hand, COVID significantly impacted the dining-out business in Q1 FY22 reversing most of the gains the industry made in Q4 FY21," it added.
Stocks in Spotlight:
Rattanindia Enterprises hit an upper circtui of 5% at Rs 54.50 after the company said that it has decided to make a strategic investment in US based Matternet, the world's most extensive urban drone logistics platform.
Larsen & Toubro (L&T) shed 0.16% to Rs 1584.60. On Wednesday, the company announced the divestment of 100% stake in the 3x33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower to Renew Power Services.
Global Markets:
Shares in Europe rose across the board while most Asia markets ended higher on Wednesday. Global markets remained cautious with investors monitoring COVID-19 developments and key economic data.
Singapore's trade and industry ministry said Wednesday that the economy grew 14.7% in the second quarter compared to a year ago, better than official advance estimates of a 14.3% expansion. The country also expects its economy to grow between 6% and 7% in 2021, an upgrade from past projections of 4% to 6%.
In US, the blue-chip Dow and the benchmark S&P 500 rose to record highs on Tuesday, buoyed by gains in economically sensitive value stocks after the Senate passed a $1 trillion bipartisan infrastructure package.
The US Senate on Tuesday passed a $1 trillion infrastructure package that is a top priority for US President Joe Biden, a bipartisan victory for the White House that could provide the nation's biggest investment in decades in roads, bridges, airports and waterways.
The vote was 69-30 in the 100-seat chamber, with 19 Republicans voting yes. Immediately after that vote concluded, Senators began voting on a follow-up $3.5 trillion spending package that Democrats plan to pass without Republican votes.
Investors now await the consumer price index and producer price index data, both of which measure inflation and are scheduled to come out Wednesday and Thursday, respectively.
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