The market further extended gains with the Nifty crossing the 9,900 mark. Sentiment got a boost following the government's decision to start a phased reopening of the economy. Strong cues from other Asian stocks also supported buying. Better-than-expected GDP numbers also lifted the investor mood.
At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 1140.15 points or 3.52% at 33,564.25. The Nifty 50 index added 324.85 points or 3.39% at 9,905.15.
In the broader market, the S&P BSE Mid-Cap index was gained 2.54% while the S&P BSE Small-Cap index rose 3.28%.
The market breadth was strong. On the BSE, 1806 shares rose and 433 shares fell. A total of 122 shares were unchanged. In the Nifty 50 index, 44 shares advanced while 6 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 4.67% to 31.63. The Nifty June 2020 futures were trading at 9,838.75, a discount of 66.4 points compared with the spot at 9,905.15.
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On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 20.15 lakh contracts at the 10,000 strike price. Maximum put OI of 25.02 lakh contracts was seen at 9,000 strike price.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,460.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 967.43 crore in the Indian equity market on 29 May, provisional data showed.
Covid-19 Update:
Total COVID-19 confirmed cases worldwide stood at 61,70,556 far with 3,72,099 deaths. India reported 93,322 active cases of COVID-19 infection and 5,394 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy Reopening:
Union Ministry of Home Affairs (MHA) has issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from June 8. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner.
Buzzing Index:
The Nifty PSU Bank index surged 5.09% to 1,187.40 amid value buying. In the past one month, the PSU Bank index lost 4.7% while the Nifty Bank index and the Nifty 50 index added 2.1% and 6.6%, respectively.
IDBI Bank (up19.95%), Bank of India (up 8.41%), State Bank of India (up 5.86%), Canara Bank (up 5.85%), Punjab National Bank (up 5.77%), Punjab & Sind Bank (up 4.94%), Bank of Baroda (up 4.63%), Indian Bank (up 4.46%), Union Bank of India (up 4.23%), Bank of Maharashtra (up 4.22%), Central Bank of India (up 4.09%), UCO Bank (up 3.1%), United Bank of India (up 1.56%) and Allahabad Bank (up 0.13%) advanced.
Earnings Impact:
Jubilant Life Sciences hit an upper circuit of 5% at Rs 464.35 after consolidated net profit stood at Rs 260.49 crore in Q4 March 2020 compared with net loss of Rs 100.65 crore in Q4 March 2019. Consolidated net sales slipped 1.9% to Rs 2,307.32 crore in Q4 March 2020 over Q4 March 2019.
EBITDA grew 58% to Rs 556 crore in Q4 FY20 from Q4 FY19. EBITDA margin improved to 23.3% in Q4 FY20 as against 14.7% in Q4 FY19.
During the quarter, Jubilant Life Sciences signed a licensing agreement with Gilead Sciences to register, manufacture and sell Gilead's investigational drug, remdesivir, a potential therapy for COVID-19 in 127 countries including India, and is working towards launching the drug in July 2020.
Polycab India hit an upper circuit of 5% at Rs 713.65 after the company reported a 52.4% rise in net profit to Rs 213.94 crore on 13.6% decline in net sales to Rs 2129.38 crore in Q4 March 2020 over Q4 March 2019. Revenue was severely impacted by COVID-19 outbreak and subsequent lockdown during prime sales period, Polycab said.
Consolidated EBITDA jumped 20% to Rs 2948 crore in Q4 March 2020 over Q4 March 2019. EBITDA margin grew to 13.8% in Q4 March 2019 from 10% reported in Q4 March 2019, driven by improved sales mix, realisation and reduction in expenses
Voltas soared 11.72% to Rs 536.25 after consolidated net profit rose 12.5% to Rs 159.50 crore on a 1.3% rise in net sales to Rs 2078.39 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 216.74 crore in Q4 March 2020, rising by 30.9% from Rs 165.60 crore in Q4 March 2019.
Electro-mechanical projects and services segment revenue for the quarter was Rs 805 crore as compared to Rs 976 crore in the corresponding quarter last year primarily due to slow pace of execution of projects. Engineering products and services segment revenue and result for the quarter were at Rs 95 crore and Rs 27 crore as compared to Rs 78 crore and Rs 27 crore, respectively in the corresponding quarter last year.
Due to lockdown, substantial business was lost in March 2020, which is the beginning of the peak season (summer) and year end billings were adversely impacted. Segment result was significantly higher by 68% at Rs 175 crore as compared to Rs. 104 crore in the corresponding quarter last year.
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