Benchmark indices sharply pared gains in afternoon trade as profit selling emerged at higher levels. The Nifty slipped below 10,200 mark. At 13:20 IST, the barometer index, the S&P BSE Sensex jumped 160.71 points or 0.47% at 34,447.95. The Nifty 50 index gained 43.40 points or 0.43% at 10,185.55.
The broader market traded with decent gains. The S&P BSE Mid-Cap index rose 0.39% while The S&P BSE Small-Cap index gained 1.25%.
The market breadth was strong. On the BSE, shares 1,809 rose and 707 shares fell. A total of 167 shares were unchanged. In Nifty 50 index, 28 stocks advanced while 22 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 70,16,794 far with 4,02,874 deaths. India reported 1,24,981 active cases of COVID-19 infection and 7,200 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Amid spike in coronavirus cases, hotels, shopping malls and places of worship are reopening in India today, 8 June.
More From This Section
Gainers & Losers:
GAIL (India) (up 7.46%), Axis Bank (up 6.83%), BPCL (up 6.55%), IOCL (up 5.03%) and Bajaj Finance (up 4.96%) were top gainers in Nifty 50 index.
Shree Cement (down 2.69%), Zee Entertainment Enterprises (down 2.55%), Cipla (down 1.99%), Eicher Motors (down 1.78%) and Nestle India (down 1.33%) were top losers in Nifty 50 index.
Q4 Results Today:
Titan Company (up 3.93%), Abbott India (up 2.11%), Chalet Hotels (up 0.55%), Gujarat State Petronet (up 3.19%), Inox Leisure (up 0.69%) and PVR (down 3.83%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Larsen & Toubro (L&T) fell 0.24%. The construction major's consolidated net profit fell 6.5% to Rs 3,197.07 crore on 2.2% rise in net sales to Rs 44,245.28 crore in Q4 March 2020 over Q4 March 2019. Profit before tax (PBT) stood at Rs 4,382.13 crore in Q4 FY20, down by 14.9% from Rs 5,150.61 crore in Q4 FY19. Profit before tax (PBT) stood at Rs 4,382.13 crore in Q4 FY20, down by 14.9% from Rs 5,150.61 crore in Q4 FY19. The result was announced after market hours on Friday (5 June). L&T's consolidated net profit rose 7.2% to Rs 9,549.03 crore on 7.6% increase in net sales to Rs 1,45,452.36 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 14,085.52 crore in FY20, down by 1.5% from Rs 14,304.67 crore in FY19. The company bagged orders worth Rs 1,86,356 crore at the group level during the year ended 31 March 2020, registering growth of 9% compared to the previous year. International orders during the year at Rs 60,094 crore increased to 32% of the total order inflow.
Vedanta rose 0.95%. The miner reported a net loss of Rs 12,521 crore in Q4 March 2020 as against net profit of Rs 2,615 crore in Q4 March 2019. The profit was impacted by exceptional loss of Rs 17,132 crore in Q4 FY20 due to impairment of assets at oil & gas, copper and iron ore business. Revenue from operations declined 16% to Rs 19,513 crore in Q4 March 2020 from Rs 23,092 crore in Q4 March 2019. Revenue fell due to lower commodity prices further impacted by COVID-19, lower volumes at zinc, oil & gas, steel business and lower power sales at TSPL partially offset by higher volume at aluminium and iron ore business, and rupee depreciation. Pre-tax loss stood at Rs 15,269 crore in Q4 FY20 as against pre-tax profit of Rs 4,104 crore in Q4 FY19. Net current tax expense slumped 52.87% to Rs 320 crore in Q4 FY20 over Q4 FY19. Consolidated EBITDA declined 23% to Rs 4,844 crore in Q4 FY20 from Rs 6,330 crore in Q4 FY19. EBITDA margin deteriorated to 28% in Q4 FY20 from 31% in Q4 FY19. EBITDA was lower primarily due to lower commodity prices further impacted by COVID-19, lower volume zinc, oil & gas and steel business, partially offset by higher sales at iron ore business, improved cost of production at aluminium & steel business, lower input commodity prices and rupee depreciation.
Gujarat Gas' edged higher by 0.95% after consolidated net profit surged 114.80% to Rs 250.46 crore on 39.8% jump in net sales to Rs 2,666.63 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax soared 113.5% to Rs 322.12 crore in Q4 March 2020 as against Rs 150.88 crore in Q4 March 2019. Current tax expenses jumped 399.9% to Rs 75.29 crore in Q4 March 2020 as against Rs 15.06 crore in Q4 March 2019. The Q4 result was released at the fag end of market hours yesterday, 5 June 2020. Gas sales volume jumped 55% Y-o-Y (year-on-year) in Q4 FY20 over Q4 FY19 and registered a 45% growth in FY20 on comparison to FY19. Total sales volume (industrial, CNG, domestic and commercial) for Q4 FY20 stood at 905 million metric standard cubic meter and 3,454 mmscm for FY20.
Relaxo Footwears dropped 4.89% after net profit fell 4.8% to Rs 51.80 crore on a 15% decline in net sales to Rs 540.58 crore in Q4 March 2020 over Q4 March 2019. "Revenue of the company has grown at 12.89% till December 2019, however, due to nationwide lockdown in the month of March 2020, growth for the current quarter has been adversely effected", the company said. Profit before tax stood at Rs 69.04 crore in Q4 FY20, down by 12.3% from Rs 78.70 crore reported in Q4 FY19. Current tax expense fell 27.4% to Rs 16.52 in Q4 FY20 from Rs 22.76 crore in Q4 FY19. Total expenses shrunk 14.8% year-on-year (YoY) to Rs 475.53 in Q4 FY20, due to lower raw material costs (down 15.1% YoY) and lower other expenses (down 12.9% YoY).
Stock in Spotlight:
Reliance Industries (RIL) rose 0.44%. RIL and Jio Platforms on Sunday announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) invested Rs 5,683.50 crore in Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. ADIA's investment will translate into a 1.16% equity stake in Jio Platforms on a fully diluted basis.
Jio Platforms has so far raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.
Meanwhile, RIL informed post market hours on Friday (5 June) that Silver Lake and its co-investors will invest an additional Rs 4,546.80 crore in Jio Platforms, in addition to the Rs 5,655.75 crore of investment by Silver Lake announced on 4 May 2020. This brings the aggregate investment by Silver Lake and its co-investors to Rs 10,202.55 crore. Silver Lake's investment will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis.
RIL informed during market hours on Friday (5 June) that Abu Dhabi-based Mubadala Investment Company will invest Rs 9,093.60 crore in Jio Platforms for a 1.85% equity stake. Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.
Global Markets:
Overseas, European markets opened lower on Monday morning. A fourteen-day quarantine comes into force for any travelers arriving in the U.K. on Monday. The move comes as most European countries continue to relax restrictions. Aviation and tourism chiefs have said the move will damage their industries and some airlines are considering a legal challenge to the quarantine measures.
Asian stocks traded higher on Monday after a surprise recovery in US employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.
China's exports in May fell 3.3% compared with a year earlier, but imports plunged 16.7%, customs data showed on Sunday. China posted a trade surplus of $62.93 billion last month, compared with $45.34 billion surplus in April.
In US, stocks ended sharply higher on Friday after jobs report showed surprise jump in payrolls, fall in unemployment rate. Shares of airlines jumped, as the industry added more summer flights.
In economic data, the Labor Department said non-farm payroll employment jumped by 2.51 million jobs in May after plummeting by a revised 20.69 million jobs in April. Employment rose sharply in leisure and hospitality, construction, education and health services, and retail trade, according to the Labor Department.
The Labor Department claimed the improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain the spread of the disease.
With the unexpected rebound in employment, the Labor Department said the unemployment rate dropped to 13.3% in May from 14.7% in April.
Powered by Capital Market - Live News