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Nifty trades above 9200; Europe opens higher

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Last Updated : May 07 2020 | 2:05 PM IST
Key equity indices pared losses in afternoon trade, tracking a positive opening in European shares. The Nifty reclaimed 9200 mark after slipping below that level in early afternoon trade. Trading remained volatile due to expiry of weekly index options.

At 13:27 IST, the barometer index, the S&P BSE Sensex, was down 181.35 points or 0.57% at 31,504.40. The Nifty 50 index was down 44.7 points or 0.51% at 9,223.20

In the broader market, the S&P BSE Mid-Cap index was up 0.22% while the S&P BSE Small-Cap index gained 0.21%. Both these indices outperformed the Sensex.

The market breadth was almost even. On the BSE, 1052 shares rose and 1068 shares fell. A total of 144 shares were unchanged. In the Nifty 50 index, the breadth was weak with 16 shares advancing and 34 shares declining.

COVID-19 Update:

Total Covid-19 confirmed cases worldwide stood at 37,53,219 so far with 2,63,843 deaths. India reported 35,902 active cases of COVID-19 infection and 1,783 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India

Gainers & Losers:

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Bharti Infratel (up 6.09%), Adani Ports & SEZ (up 4.68%), Tech Mahindra (up 2.94%), Mahindra & Mahindra (up 2.61%) and IndusInd Bank (up 2.46%) were top gainers in Nifty 50 index.

Bharat Petroleum Corporation (down 3.91%), ONGC (down 3.41%), Asian Paints (down 2.94%), Titan Company (down 2.9%) and NTPC (down 2.85%) were top losers in Nifty 50 index.

Q4 Results Today:

Solara Active Pharma (up 3.64%), SKF India (down 0.56%), RBL Bank (up 0.19%), Gillette India (down 1.5%), Cyient (up 2.32%) and 5paisa Capital (down 1.11%) are some of the companies that will announce their Q4 March 2020 result today.

Earnings Impact:

HCL Technologies was down 1.07%. The IT firm's consolidated net profit rose 3.8% to Rs 3154 crore on a 2.5% increase in revenue to Rs 18590 crore in Q4 March 2020 over Q3 December 2019. The earnings before interest and tax (EBIT) stood at Rs 3,881 crore in Q4 FY20, up 5.8% from Rs 3,670 crore in in Q3 FY20. EBIT margin was at 20.9% as on 31 March 2020 as compared 20.2% as on 31 December 2019.

JM Financial's consolidated net profit rose 1.49% to Rs 130.56 crore on a 6.12% rise in total income to Rs 840.58 crore in Q4 March 2020 over Q4 March 2019. The company made gross provisions of Rs 175 crore to deal with the uncertainties on account of COVID-19. The company's total loan book stood at Rs 11,531 crore as of 31 March 2020 compared to Rs 14,107 crore as of 31 March 2019. Gross NPA and Net NPA stood at 1.65% and 1.13% respectively as of 31 March 2020 compared to 0.68% and 0.55% respectively as of 31 March 2019. Shares of JM Financial jumped 5.73% to Rs 66.45.

Yes Bank jumped 7.97% after the bank reported a net profit of Rs 2628.61 crore in Q4 March 2020 as against a net loss of Rs 1506.64 crore in Q4 March 2019. Total income rose 44.4% to Rs 12,115.53 crore in Q4 March 2020 over the corresponding period last year.

The bank generated an extraordinary income (net of tax) of Rs 6,296.94 crore during the quarter on account of writing down of certain Basel III additional tier-1 (AT-1) bonds amounting to Rs 8,415 crore. Excluding this extraordinary item, Yes Bank reported a net loss from ordinary activities of Rs 3,668.33 crore in Q4 March 2020 compared with a net loss from ordinary activities of Rs 1,506.64 crore in Q4 March 2019.

The bank's provisions and contingencies rose 33.1% to Rs 4,872.34 crore in Q4 March 2020 over Q4 March 2019. The bank's gross non-performing assets (NPAs) stood at Rs 32,877.59 crore as on 31 March 2020 as against Rs 40,709.20 crore as on 31 December 2019 and Rs 7,882.56 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 16.80% as on 31 March 2020 as against 18.87% as on 31 December 2019 and 3.22% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.03% as on 31 March 2020 as against 5.97% as on 31 December 2019 and 1.86% as on 31 March 2019.

Global Markets:

European markets opened higher as plans to reopen economies in Germany and United Kingdom boosted investor sentiment.

Asian markets were mixed on Thursday, digesting weak overnight cues from the US amid mixed corporate earnings and worsening macro data. Markets in Singapore, Malaysia and Indonesia are closed for holidays.

On the economic data front, China's Caixin/Markit services Purchasing Managers' Index for April showed that the country's services sector slumped for the third straight month. It came in at 44.4, an improvement from the 43 reading in March but still off the 50-level that separates growth from contraction.

In US, stocks closed mixed, as investors pored over data showing a collapse in private-sector employment in April and weighed the easing of lockdowns imposed by the coronavirus pandemic. Investors also parsed corporate quarterly updates from some of the nation's largest companies, with Walt Disney Co.'s profit diving more than 90% in the second quarter due to the hit from the pandemic on the entertainment giant.

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First Published: May 07 2020 | 1:29 PM IST

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