Key indices continued to trade sideways with steep losses in afternoon trade. The Nifty held above 9200 mark. At 13:23 IST, the barometer index, the S&P BSE Sensex, fell 650.82 points or 2.03% at 31,357.40. The Nifty 50 index was down 178.95 points or 1.92% at 9,204.60.
A weak economic outlook by the US Fed and worries about a second wave of coronavirus infections weighed on domestic and global markets. Domestic investors shrugged off a number of measures announced by the Indian government to support MSMEs and NBFCs.
The broader market bucked weak trend. In broader market, S&P BSE Midcap index was up 0.08% while S&P BSE Smallcap index down 0.33%.
The market breadth was negative. On the BSE, 868 shares rose and 1228 shares fell. A total of 142 shares were unchanged. In the Nifty 50 index, 11 shares advanced while 39 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 43,48,246 far with 2,97,220 deaths. India reported 49,219 active cases of COVID-19 infection and 2,549 deaths, according to the data from the Ministry of Health and Family Welfare.
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Gainers & Losers:
Bharti Infratel (up 4.64%), Bajaj Finance (up 3%), Sun Pharmaceutical Inds (up 2.01%), Hero MotoCorp (up 1.57%) and Bajaj Finserv (up 1.24%) were top gainers in Nifty 50 index.
Tech Mahindra (down 4.88%), Infosys (down 4.84%), Hindalco Inds (down 4.23%), GAIL (down 4.09%) and IndusInd Bank (down 4%) were top losers in Nifty 50 index.
Q4 Results Today:
AAVAS Financiers (up 1.42%), Biocon (up 0.71%), Indiabulls Real Estate (down 1.17%), Mahindra Lifespace Developers (down 0.68%), Escorts (down 1.91%), Indian Energy Exchange (up 0.55%), Manappuram Finance (up 2.47%), Oracle Financial Services Software (up 0.33%), Tata Consumer Products (up 1.31%), Mahindra EPC Irrigation (up 1.48%) and Zensar Technologies (up 0.24%) are some of the companies that will announce their quarterly results today.
Earnings Impact:
Godrej Consumer Products added 5.70% to Rs 565. On a consolidated basis, Godrej Consumer Products reported a 75.42% drop in net profit to Rs 229.90 crore on a 12.2% drop in net sales to Rs 2132.69 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) fell 32.54% to Rs 337.30 crore in Q4 March 2020 over Q4 March 2019. Consolidated business EBITDA declined 18% year on year (YoY) in Q4 March 2020 while consolidated constant currency EBITDA declined by 15% year-on-year in the same period. The company said consolidated EBIDTA margins declined to 22.3%.
The company said it has temporarily deferred its outlook for FY21 driven by progression of COVID-19 and related uncertainties. The company said complete pause on sales due to disruption of both back end and front end supply chain took a hit.
Schaeffler India lost 0.58% to Rs 3,284.95 after net profit fell 26.4% to Rs 78.35 crore on 20.8% decline in net sales to Rs 928.54 crore in Q1 March 2020 over Q1 March 2019. Total expenditure contracted by 19.9% to Rs 791.28 crore and interest payments fell 21.7% to Rs 0.94 crore in Q1 CY2020 over Q1 CY2019. Depreciation costs during the quarter stood at Rs 44.42 crore, up by 17.5% from Rs 37.81 crore reported in the corresponding period last year. Profit before tax (PBT) fell 32.2% to Rs 110.07 crore in Q1 CY2020 from Rs 162.26 crore reported in Q1 CY2019. Current tax expenses stood at Rs 32 crore in Q1 March 2020, down by 39.1% from Rs 52.55 crore in Q1 March 2019.
ABB India slipped 0.86% to Rs 848.70 after it reported 25.84% fall in profit after tax to Rs 66 crore on a 17.73% decline in revenues to Rs 1,522 crore in Q1 March 2020 over Q1 March 2019. Orders rose 9.72% to Rs 1,953 in Q1 CY2020 from Rs 1,780 in Q1 CY2019. Operational EBITA contracted by 65.87% to Rs 43 crore in Q1 March 2020 from Rs 126 crore in Q1 March 2019. Operational EBITA margin stood at 2.8% in Q1 CY2020 as compared to 6.8% in Q1 CY2019. Profit before tax in the first quarter of CY2020 fell to Rs 87 crore, down by 37.41% from Rs 139 crore reported in the corresponding period last year.
Global Markets:
European share opened lower while Asian markets continued trading lower as fresh worries about a second wave of coronavirus infections dented sentiment.
On the economic data front, seasonally adjusted employment in Australia fell by 594,300 people in April as compared to March, according to data released by the country's Bureau of Statistics on Thursday.
In US, stock benchmarks closed sharply lower Wednesday as Wall Street digested a grim near-term economic outlook from Federal Reserve Chairman Jerome Powell, amid attempts by state and federal officials to restart businesses from a coronavirus-induced lockdown.
Powell gave a solemn assessment of the US economy and called for more government spending if that is what it takes to avoid "long-term economic damage" from the coronavirus pandemic.
Meanwhile, President Donald Trump on Wednesday said that top coronavirus health expert Dr. Anthony Fauci's recent warning about the potentially dire consequences of reopening states.
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