Key domestic barometers traded in a narrow range near the day's high in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 520.07 points or 1.52% at 34,807.31. The Nifty 50 index was up 165.65 points or 1.63% at 10,307.80.
Global cues were upbeat following a surprise recovery in US employment rate in May. Strong inflows from foreign portfolio investors (FPIs) also boosted investors confidence. FPIs purchased Indian shares worth Rs 15,620.19 crore so far in June 2020 (till 5 June).
Technically, the Nifty 50 index was still below its 200-day moving average (DMA) placed at 10,958.24, which could act as a strong resistance. The 100-DMA was placed at 10,305.48.
The broader market traded firm. The S&P BSE Mid-Cap index was up 1.10%. The S&P BSE Small-Cap index was up 1.90%.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1761 shares rose and 428 shares fell. A total of 124 shares were unchanged. In the Nifty 50 index, 41 shares advanced while 9 stocks declined.
Buzzing Index:
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The Nifty Pharma index fell 1.21% to 9,958.90 amid profit booking. The index added 28.4% in the past three months while the benchmark Nifty has lost 1.4% in the same period.
Divi's Laboratories (down 4.67%), Dr Reddy's Laboratories (down 1.36%), Cipla (down 1.27%), Wockhardt (down 1.03%), Lupin (down 1.01%), Cadila Healthcare (down 0.98%), GlaxoSmithKline Pharmaceuticals (down 0.98%), Alkem Laboratories (down 0.67%), Sun Pharmaceutical Industries (down 0.56%), Strides Pharma Science (down 0.22%) declined.
Meanwhile, Piramal Enterprises (up 0.55%), Aurobindo Pharma (up 0.5%), Glenmark Pharmaceuticals (up 0.17%) and IPCA Laboratories (up 0.09%) advanced.
Q4 Results Today:
Titan Company (up 3.91%), Abbott India (up 2.51%), Chalet Hotels (up 0.24%), Gujarat State Petronet (up 2.86%), Inox Leisure (up 5.22%) and PVR (down 1.21%) are some of the companies that will announce their quarterly earnings today.
Earnings impact:
Vedanta slipped 2.09% to Rs 103.15 after the company 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.
Karnataka Bank fell 3.26% to Rs 41.60 after it reported 55.8% fall in net profit to Rs 27.31 crore despite a 14.1% rise in total income to Rs 2,079.58 crore in Q4 March 2020 over Q4 March 2019. Profit before tax in the fourth quarter stood at Rs 35.04 crore, down by 67.1% from Rs 106.50 crore reported during the same period last year.
Net interest income rose 10.1% to Rs 529.30 crore in Q4 FY20 from Rs 480.88 crore in Q4 FY19. Net interest margin stood at 2.86% as on 31 March 2020 as against 2.87% as on 31 March 2019. Cost to Income was at 59.62% in Q4 FY20 as compared to 57.97% in Q4 FY19.
Provisions and Contingencies jumped 63.7% year-on-year (YoY) to Rs 356.50 crore during the March quarter. The provision coverage ratio as at 31 March 2020 stood at 64.70% as against 58.45% as on 31 March 2019.
The bank's gross non-performing assets (NPAs) stood at Rs 2,799.93 crore as on 31 March 2020 as against Rs 2,777.46 crore as on 31 December 2019 and Rs 2,456.38 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 4.82% as on 31 March 2020 as against 4.99% as on 31 December 2019 and 4.41% as on 31 March 2019. The ratio of net NPAs to net advances stood at 3.08% as on 31 March 2020 as against 3.75% as on 31 December 2019 and 2.95% as on 31 March 2019.
During the March quarter, the bank has recognised its exposure in respect of 11 entities with outstanding balance of Rs 252.49 crore as fraud and provided for the accounts, in accordance with the RBI norms.
The bank's deposit increased 4.9% to Rs 71,785.15 crore as on 31 March 2020 from Rs 68,452.12 crore as on 31 March 2019. Advances rose 3.9% to Rs 56,964.27 crore as on 31 March 2020 from Rs 54,828.20 crore as on 31 March 2019.
With respect to COVID-19 moratorium availment, the bank said that 34.67% borrowers have availed moratorium, which in amount terms translates to 46.62% of its loan book as on 31 May 2020.
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