Benchmark indices traded with steep losses in afternoon trade. Selling pressure was broad based with banks and financial stocks correcting after the Supreme Court (SC) raised concerns over levying of interests on loans during the six-month moratorium period.
At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 349.58 points or 1.02% at 33,759.96. The Nifty 50 index lost 104.45 points or 1.04% at 9,957.10.
The broader market corrected. The S&P BSE Mid-Cap index fell 0.51%. The S&P BSE Small-Cap index declined 0.57%.
Sellers outpaced the buyers. On the BSE, shares 1,011 rose and 1,224 shares fell. A total of 114 shares were unchanged. In Nifty 50 index, 18 stocks advanced while 32 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 65,13,301 far with 3,86,091 deaths. India reported 1,06,737 active cases of COVID-19 infection and 6,075 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
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Gainers & Losers:
Vedanta (up 4.34%), Tech Mahindra (up 4.08%), Sun Pharmaceutical Industries (up 2.49%), Cipla (up 1.86%) and Power Grid Corporation of India (up 1.70%) were top Nifty gainers.
IndusInd Bank (down 5.19%), Bajaj Finance (down 4.93%), Asian Paints (down 3.96%), HDFC (down 3.89%) and Axis Bank (down 3.81%) were major Nifty losers.
Q4 Results Today:
DLF (down 0.35%), NIIT (up 0.98%), PI Industries (up 0.10%), Safari Industries (India) (down 4.95%) and SRF (up 0.53%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
BPCL gained 0.23%. The PSU OMC reported a consolidated net loss of Rs 1,819.56 crore in Q4 March 2020 as compared with a net profit of Rs 3,131.66 crore in Q4 March 2019. The average gross refining margin (GRM) during the financial year ended 30 March 2020 is $2.50 per barrel as compared with $4.58 per barrel last year. Net sales slipped 7.1% to Rs 68,997.83 crore in Q4 March 2020 over Rs 74,255.73 crore in Q4 March 2019. Consolidated pre-tax loss stood at Rs 2,958.91 crore in Q4 March 2020 as against a pre-tax gain of Rs 4,961.79 crore in Q4 March 2019.
Aurobindo Pharma advanced 1.35% after consolidated net profit jumped 45.2% to Rs 849.80 crore on 16.6% rise in net sales to Rs 6,063.40 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 1,077.51 crore in Q4 March 2020, rising 32% from Rs 816.34 crore in Q4 March 2019. Consolidated EBITDA surged 26.6% to Rs 1,342 in Q4 March 2020 from Rs 1,060 crore in Q4 March 2019. EBITDA margin improved to 21.8% in Q4 March 2020 from 20% in Q4 March 2019. Research & Development expenses for Q4 March 2020 stood at Rs 239 crore, 3.9% of revenue. US formulation sales stood at Rs 2,990.3 crore in Q4 March 2020, registering a growth of 20.5% from Rs 2,481.10 crore in Q4 May 2019. Europe formulation sales stood at Rs 1,652.5 crore, an increase of 26% from the same period last year. API sales for the quarter declined 17.6% and stood at Rs 755.6 crore in Q4 March 2020 as against Rs 916.8 crore in Q4 March 2019.
Cholamandalam Investment and Finance Company dropped 7.74% after net profit slumped 85.38% to Rs 42.66 crore on 14.11% rise in total income to Rs 2,151.45 crore in Q4 March 2020 over Q4 March 2019. The NBFC major said net profit before this provision stood at Rs 418 crore which is up by 43% for the quarter over previous year. Total Assets under Management (AUM) grew by 16% to Rs 66,943 crore from Rs 57,560 crore in Q4 March 2019. With respect to the moratorium announced by RBI on EMI repayments, Cholamandalam Investment said that nearly 76% of customers have availed moratorium considering the uncertainty over the period of lockdown. The company has created a one-time contingency provision of Rs 284 crore towards probable losses against loans for which moratorium was extended. Over and above this, the company has also created a Macro provision of Rs 250 crore to meet contingencies that may arise post moratorium due to the global recession and economic slow-down. In total, the company has set aside an additional provision of Rs 534 crore (including Rs 30 crore of Macro provision created in FY 19) to meet any contingencies that may arise in future due to the Covid-19 shut down. The company further said it has not availed moratorium so far on its borrowings, and it does not intend to avail any moratorium benefit.
Stocks in Spotlight:
GAIL (India) rose 0.88%. GAIL (India) and Energy Efficiency Services (EESL) signed a Memorandum of Understanding (MoU) yesterday for cooperation in development of Trigeneration projects in India. The MoU aims at building a closer strategic partnership between the two. companies by jointly exploring business opportunities in Trigeneration business segment in India.
Jindal Steel & Power (JSPL) jumped 6.62% after the company's standalone steel sales jumped 28% to 6,40,000 tonnes in May 2020 from 5,00,000 tonnes recorded during the same period in the previous year. Out of total standalone sales, 4,01,000 tonnes are export sales. The company's consolidated steel sales stood 7,97,000 tonnes in May 2020, up by 26% from 6,31,000 tonnes reported in May 2019. Consolidated steel production stood at 6,20,000 tonnes and pellets production was at 6,47,000 tonnes in May 2020. The figures are on provisional basis.
Persistent Systems gained 0.64%. Persistent Systems and IBM yesterday announced a new collaboration to help accelerate IBM Cloud Pak deployments to speed clients' enterprise modernization and their move to the cloud.
Global Markets:
European market opened lower on Thursday. The European Central Bank (ECB) is expected to increase its coronavirus crisis asset-purchase program at this week's meeting. In March, the ECB unveiled its Pandemic Emergency Purchase Programme (PEPP), which will see it buy 750 billion euros (i.e. $819 billion) in euro zone government bonds this year in a bid to do more in combatting COVID-19 outbreak.
Most Asian stocks traded higher amid optimism about a possible global recovery from the coronavirus pandemic as more economies reopen despite rising case numbers in the United States, Brazil and other countries.
The US equity market finished session higher on Wednesday, 3 June, as investors risk sentiments improved on slew of better than expected economic data and expectation that economic activity will improve with the ebbing of coronavirus infections and additional government stimulus.
The Commerce Department released a report on Wednesday showing another nosedive in factory orders in the month of April, after reporting a steep drop in new orders for U.S. manufactured goods in the previous month. The Commerce Department said new orders plunged by 13% in April after plummeting by a revised 11% in March.
US service sector activity continued to contract in the month of May, a report released by the Institute for Supply Management on Wednesday showed. The ISM said its non-manufacturing index rebounded to 45.4 in May after plunging to an eleven-year low of 41.8 in April. A reading below 50 still indicates a contraction in service sector activity.
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