In the broader market, the S&P BSE Mid-Cap index added 1.27% while the S&P BSE Small-Cap index rose 0.45%.
The market breadth was positive. On the BSE, 1150 shares rose and 1028 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 39 stocks advanced while 11 stocks declined.
Gainers & Losers:
Tata Motors (up 9.32%), Maruti Suzuki (up 7.31%), Hero MotoCorp (up 7.41%), Zee Entertainment (up 5.97%) and Bajaj Auto (up 5.5%) were top gainers in Nifty 50 index.
Dr. Reddy's Laboratories (down 2.67%), ICICI Bank (down 2.55%), Bharat Petroleum Corporation (down 2.37%), HUL (down 0.85%) and Tech Mahindra (down 0.78%) were top losers in Nifty 50 index.
Economy:
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After reviewing the cash position and requirements of the central government, the Government of India in consultation with the Reserve Bank of India, has decided to modify the indicative calendar for issuance of Government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11- Sept 30, 2020). The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per budget estimates (BE) 2020-21. The above revision in borrowings has been necessitated on account of the COVID-19 pandemic.
Following this, a foreign brokerage has cut steeply its FY2021 GDP forecast for India from -0.4% to -5.2%. The firm reportedly added that the government's decision to borrow Rs 12 lakh crore (revised higher from Rs 7.8 lakh crore) means that the fiscal deficit, by the official math, can be pegged at 5.5-6% of GDP.
Q4 Earnings Today:
Godrej Agrovet (up 0.57%), Motilal Oswal Financial Services (up 3.42%), Piramal Enterprises (up 5.16%), Wockhardt (up 2.13%), Saint-Gobain Sekurit India (up 3.23%), Sonata Software (up 0.17%) and Subex (up 4.96%) are some of the companies that will announce their Q4 March 2020 result today.
Earnings Impact:
HDFC Asset Management Company fell 2.11% after net profit fell 9.5% to Rs 249.83 crore on a 17.9% fall in total income to Rs 449.62 crore in Q4 March 2020 over Q4 March 2019. The quarter average assets under management (QAAUM) of Rs 3,698 billion as of 31 March 2020 compared to Rs 3,423 billion as on 31 March 2019, growth of 8%. It has 13.7% market share in QAAUM of the mutual fund industry.
QAAUM in actively managed equity oriented funds i.e. equity oriented QAAUM excluding index funds stood at Rs 1,574 billion as on 31 March 2020 with a market share of 15.2%. The AMC is the largest actively managed equity-oriented mutual fund manager in the country. The ratio of equity oriented AUM and non-equity oriented AUM is 38:62 compared to the industry ratio of 37:63.
As of 31 March 2020, 57% of the company's total monthly average AUM is contributed by individual investors compared to 52% for the industry. It had a market share of 15% of the individual monthly average AUM in the industry.
Adani Transmission rose 0.89%. The company said its consolidated net profit dropped 60% to Rs 59 crore on a 3% decline in operational revenue to Rs 2220 crore in Q4 March 2020 over Q4 March 2019.
The company said that slump in net profit was due to one-time write off finance sunk cost of Rs 185 crore (non-cash item). Revenue declined due to lower share of distribution business on account of subdued power demand by industries.
Consolidated profit before tax (PBT) rose 1% to Rs 217 crore in Q4 March 2020 over Q4 March 2019. Operational EBITDA grew at 2% to Rs 893 crore in Q4 March 2020 from Rs 876 crore posted in Q4 March 2019. EBITDA margin improved to 40.2% in Q4 March 2020 from 38.4% in Q4 March 2019.
Mahindra Holidays & Resorts India jumped 7.6%. The company reported a consolidated net loss of Rs 164.57 crore in Q4 March 2020 as against a net profit of Rs 46.15 crore in Q4 March 2019. Net sales fell 2.8% to Rs 616.61 crore in Q4 March 2020 over Q4 March 2019.
The company in notes to accounts mentioned that a loss of Rs 164.57 crore in Q4 March was reported on the back of one-time transition impact due to lower tax rate adoption. The company said it exercised the option of Lower Corporate Tax Rate available under Section 115BAA of the Income Tax Act, 1961, as introduced by Taxation Laws (Amendment) Ordinance, 2019. Accordingly it re-measured accumulated deferred tax asset & current tax, which has resulted in a one-time transition impact of Rs 199.7 crore in Profit & Loss account of current quarter and financial year.
Profit Before Tax declined 40.8% to Rs to Rs 41.05 crore in Q4 March 2020 from Rs 69.30 crore in Q4 March 2019. The company said the member additions and occupancies were adversely affected due to COVID-19 pandemic in March-20. The company added 3,616 members in Q4 March 2020 as against 5,671 members added in the same period last year.
Global Markets:
European markets opened higher and Asian stocks were trading in green as investors looked ahead to more countries restarting their economies.
British Prime Minister Boris Johnson on Sunday announced a phased plan to ease a nationwide coronavirus lockdown, with schools and shops to begin opening from June 1 as long as infection rates stay low. Disney is set to reopen its Disneyland theme park in Shanghai on Monday.
Italian Prime Minister Giuseppe Conte said over the weekend Italy could ease its lockdown measures earlier than planned if the outbreak remains under control. Meanwhile, the most populous state in Australia will let restaurants, playground and outdoor pools resume operations on Friday, the region's premier said Sunday.
In US, stock market ended sharply higher on Friday (8 May) despite grim monthly jobs report as investors bet the worst of the coronavirus crisis has passed. Investors also hoped for an eventual reopening of the economy.
The Dow Jones Industrial Average rose 455.43 points, or 1.9%, to close at 24,331.32 and the S&P 500 index gained 48.61 points, or 1.69% to end the session at 2,929.80. The Nasdaq Composite Index advanced 141.66 points, or 1.58%, to 9,121.32.
Sentiment was also aided after top US and Chinese trade representatives played down deep differences and said they would press ahead with implementing their Phase 1 trade deal. US Trade Representative Robert Lighthizer discussed the deal with Chinese Vice Premier Liu He and US Treasury Secretary Steven Mnuchin on the phone call. The US officials said in a joint statement that both sides agreed the obligations would be met.
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