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Benchmarks slip into the red; breadth negative

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Capital Market
Last Updated : Jun 01 2021 | 10:51 AM IST

The key equity barometers reversed gains and slipped into the negative terrain in morning trade. The Nifty, however, managed to hold above the 15,550 mark. Metal shares corrected after a three-day wining streak.

At 10:22 IST, the barometer index, the S&P BSE Sensex, was down 93.56 points or 0.18% to 51,843.88. The Nifty 50 index lost 26.20 points or 0.17% to 15,556.60.

In broader market, the S&P BSE Mid-Cap index shed 0.33% while the S&P BSE Small-Cap index declined 0.35%.

The market breadth was negative. On the BSE, 1265 shares rose and 1484 shares fell. A total of 114 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 170,593,575 with 3,547,205 global deaths.

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India reported 18,95,520 active cases of COVID-19 infection and 3,31,895 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's Gross Domestic Product (GDP) contracted by 7.3% in 2020-21, as per provisional National Income estimates released by the National Statistical Office on Monday. GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4%. Meanwhilem the fourth quarter (Q4) of 2020-21 reported expected growth of 1.6% in GDP.

India recorded a Fiscal Deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA). Total revenue receipts turned out to be about Rs 88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was Rs 61,000 crore more than the revised estimate.

Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said that the revenue deficit at the end of the fiscal was 7.42%.

The reading of the Index of Eight Core Industries for last month showed an expansion of over 56% from a (-) 37.9% dip in output during the same month of last year. In March this year, the eight sectors had recorded a growth rate of 11.4%.

Manufacturing PMI:

The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 50.8 in May, down from 55.5 in April. The latest figure pointed to a marginal improvement in business conditions that was the weakest in the current ten-month sequence of expansion.

Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: The Indian manufacturing sector is showing increasing signs of strain as the COVID-19 crisis intensifies. Key gauges of current sales, production and input buying weakened noticeably in May and pointed to the slowest rates of increase in ten months. In fact, all indices were down from April."Amid a lack of new work, goods producers reduced headcounts again, with the rate of job shedding quickening in May.

"That said, the detrimental impacts of the pandemic and associated restrictions seen in the manufacturing sector are considerably less severe than during the first lockdown when unprecedented contractions had been recorded.

"Growth projections were revised lower, as firms became more worried about the escalation of the pandemic and local restrictions. The overall degree of optimism towards the year-ahead outlook for output was at a ten-month low, a factor which could hamper business investment and cause further job losses."

Buzzing Index:

The Nifty Metal index fell 1.88% to 5,064.95 amid profit booking. The index rose 3.14% in the past three sessions.

SAIL (down 4.27%), Tata Steel (down 3.14%), Jindal Steel & Power (down 2.90%), JSW Steel (down 2.48%), Welspun Corp (down 2.20%), Hindustan Copper (down 1.88%), MOIL (down 1.69%), National Aluminum Company (down 1.63%), NMDC (down 1.35%) and Hindalco Industries (down 1.09%) declined.

Meanwhile, Ratnamani Metals Tubes (up 0.50%), Hindustan Zinc (up 0.20%) and Mishra Dhatu Nigam (up 0.16%) advanced.

Results Today:

ITC (up 0.51%), Gujarat Gas (up 0.13%), Radico Khaitan (up 3%), Balrampur Chini Mills (up 1.33%), Emami Paper (up 0.86%), Salasar Techno (up 1.99%) and R.P.P. Infra Projects (up 0.83%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

Shilpa Medicare fell 2.53% to Rs 503.95. The company's consolidated net profit slumped 77.35% to Rs 7.83 crore on 5.44% decrease in revenue from operations to Rs 208.03 crore in Q4 March 2021 over Q4 March 2020. EBITDA skid 39% to Rs 33.12 crore in Q4 FY21 as against Rs 54.50 crore over the same period last year. EBITDA margin stood at 15% in Q4 March 2021 from 24% in Q4 March 2020.

Narayana Hrudayalaya added 3.99% to Rs 457. The hospital chain operator's consolidated net profit soared 467.55% to Rs 68.05 crore on a 12.76% increase in revenue from operations to Rs 837.76 crore in Q4 March 2021 over Q4 March 2020.

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First Published: Jun 01 2021 | 10:25 AM IST

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