At 10:26 IST, the barometer index, the S&P BSE Sensex, was up 436.58 points or 0.94% at 46,722.87. The Nifty 50 index surged 110.60 points or 0.81% at 13,745.45.
In broader market, the S&P BSE Mid-Cap index was up 0.01% while the S&P BSE Small-Cap index was up 0.23%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1351 shares rose and 1034 shares fell. A total of 143 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 102,944,487 with 2,27,568 deaths. India reported 168,235 active cases of COVID-19 infection and 154,392 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Union Budget 2021:
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Union Finance Minister Nirmala Sitharaman is set to deliver her third Budget in Lok Sabha at around 11:00 AM on Monday, 1 February. The ninth budget under Modi government is expected to increase spending on infrastructure and cut taxes to boost the economy, while deferring debt cut plans. Market is awaiting key reforms that could push growth and kickstart the capex cycle in the economy.
Economy:
The GST revenue collected for January 2021 till 6 PM on January 31 was Rs 1,19,847 crore. This is the highest GST revenue the government has collected since the rollout of the goods and services tax regime. The GST revenues for January is 8% higher than the revenues collected in the same month last year. In January 2020, the government had garnered around Rs 1.1 lakh crore.
Meanwhile, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index rose to 57.7 in January from 56.4 in December, to signal the strongest improvement in the health of the sector in three months. Sustained sales growth supported a further upturn in manufacturing sector output in January. The rise in production was the sixth in successive months and the quickest since last October.
Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit said,The Indian Manufacturing PMI remained well inside positive territory in January, signalling a sixth consecutive improvement in business conditions and moving further away from the COVID-related contractions recorded around mid-2020. Factories continued to ramp-up production at an abovetrend pace, and the sustained upturn in new work intakes suggests that there is room for capacity expansion in the near-term. Jobs fell at the start of the year, but did so at the weakest pace in the current ten-month stretch of contraction. An important insight from the January survey was a pick-up in inflationary pressures, as lingering supply-side squeeze drove the sharpest increase in purchasing costs for over two years. The favourable demand environment was accommodative of price hikes and charges were raised at the fastest pace in over a year. Companies cheered the roll-out of COVID-19 vaccines and became more optimistic towards growth prospects, a position that is supportive of investment and job creation as businesses attempt to rebuild their inventories of finished goods and meet demand needs.
Buzzing Segment:
Shares of theatre operating companies were trading higher after the Government allowed cinema halls to operate at 100% capacity. Union Minister Prakash Javadekar on 31 January released a standard operating procedure on preventive measures to contain spread of COVID-19 for cinema halls and theatres. He added that sanitisation and COVID protocols will have to be adhered to but people can buy food from the stalls inside the theatres. He assured that the restrictions put in place due to COVID are on the verge of ending.
Shares of PVR climbed 5.02% at Rs 1489 while Inox Leisure jumped 3.76% to Rs 332.35.
Earnings Impact:
ICICI Bank jumped 5.16%. The private lender reported 19.1% rise in net profit to Rs 4,939.59 crore on 3.3% increase in total income to Rs 24416.06 crore in Q3 FY21 over Q3 FY20. Net interest income (NII) increased by 16% year-on-year (YoY) to Rs 9,912 crore in Q3 FY21 from Rs 8,545 crore in Q3 FY20. Net interest margin (NIM) was at 3.67% as on 31 December 2021 as compared to 3.77% as on 31 December 2019. The core operating profit increased by 15% year-on-year to Rs 8,054 crore in Q3-2021 from Rs 7,017 crore in Q3-2020. Provisions (excluding provision for tax) were Rs 2,742 crore in Q3 FY21, higher than Rs 2,083 crore in Q3 FY20. During Q3 FY21, the bank made contingency provision amounting to Rs 3,012 crore for borrower accounts not classified as non-performing pursuant to the interim order of the Supreme Court. The bank utilised Rs 1,800 crore of COVID-19 related provisions made in the earlier periods. On the asset quality side, gross non-performing assets (NPAs) stood at Rs 34,860.43 crore as on 31 December 2020 as against Rs 38,989.19 crore as on 30 September 2020 and Rs 43.453.86 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 4.38% as on 31 December 2020 as against 5.17% as on 30 September 2020 and 5.95% as on 31 December 2019.
IndusInd Bank jumped nearly 8%. The private lender's net profit tanked 34.4% to Rs 852.76 crore and total income fell 1.4% at Rs 8,946.96 crore in Q3 December 2020 over Q3 December 2019. The private sector bank's operating profit before provisions increased by 8.29% to Rs 2973.28 crore in Q3 FY21 from Rs 2745.64 crore in Q3 FY20. The bank's provisions and contingencies jumped 77.63% to Rs 1853.52 crore in Q3 FY21 as against Rs 1043.45 crore in Q3 FY20. The bank has made regulatory, floating, counter cyclical and/or contingent provisions, taking the total amount of such provisions to Rs 3,261 crore as of 31 December 2020, including an amount of Rs 400 crore in respect of borrower accounts restructured in accordance with Resolution Framework for COVID-19 related stress. The provisions held by the bank are higher than the provision required under the RBI framework. On the asset quality side, gross non-performing assets (NPAs) stood at Rs 3650.66 crore as on 31 December 2020 as against Rs 4532.15 crore as on 30 September 2020 and Rs 4578.43 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 1.74% as on 31 December 2020 as against 2.21% as on 30 September 2020 and 2.18% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.22% as on 31 December 2020 as against 0.52% as on 30 September 2020 and 1.05% as on 31 December 2019.
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