Weakness in index pivotals like Reliance Industries (down 2.22%) and HDFC Bank (down 3.05%) weighed on the bourses.
The Nifty opened higher at 10,181.15 and slipped into negative terrain in early trade. The index firmed up once again and hit an intraday high of 10,291.15 in afternoon trade. Profit selling at higher levels dragged Nifty to the day's low of 10,021.45 in the mid-afternoon session.
In broader market, the S&P BSE Mid-Cap index fell 0.21% while the S&P BSE Small-Cap index declined 1%.
Sellers outpaced buyers. On the BSE, 1,116 shares rose and 1462 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 13 stocks advanced and 37 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 71,21,126 far with 4,06,570 deaths. India reported 1,29,917 active cases of COVID-19 infection and 7,466 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
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Economy:
India's economy will shrink by 3.2% in the current fiscal, the World Bank said on Monday, 8 June 2020. The COVID-19 pandemic and the multi-phased lockdown imposed to curb its spread has resulted in a devastating blow to the Indian economy. However, the Indian economy is expected to bounce back in 2021, the World Bank said.
The global economy, which has plunged into a severe contraction, will shrink by 5.2% this year due to the massive shock of the coronavirus pandemic and the shutdown measures to contain it, the World Bank said on Monday. The speed and depth with which it has struck, suggests the possibility of a sluggish recovery that may require policymakers to consider additional interventions, it said.
Q4 Results Today:
Hero MotoCorp (down 0.01%), Bombay Dyeing & Manufacturing Co. (down 0.86%), Eclerx Services (down 0.81%), Gujarat Pipavav Port (down 0.67%), KRBL (up 0.3%), Mangalore Refinery & Petrochemicals (up 1.67%), PSP Projects (up 4.43%), Tata Steel Long Products (up 3.67%) and TeamLease Services (up 6.36%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Titan Company fell 2.62%. The jewellery maker's consolidated net profit declined 1.5% to Rs 343.07 crore on a 4.3% decline in net sales to Rs 4,617.31 crore in Q4 March 2020 over Q4 March 2019. Jewellery division revenue declined 5.8% due to lost sales in March. Watch and wearable segment revenue grew 5% in Q4 March 2020, despite the significant loss of sales in March. Eye wear segment revenue declined 17% in Q4 due to decline in trade channel. Titan's other business grew at 12% in Q4 March 2020 over Q4 March 2019. In Fragrances, Fastrack perfumes continued to increase its distribution reach. Titan Engineering and Automation (TEAL) had a good quarter with a growth of 37%. Titan's 72.3% owned subsidiary, CaratLane grew at 12% in Q4 March 2020.
PVR declined 2.62% after the cinema chain operator reported consolidated net loss of Rs 74.61 crore in Q4 March 2020 compared with net profit of Rs 46.75 crore in Q4 March 2019. Net sales dropped 23% to Rs 645.13 crore in Q4 March 2020 over Q4 March 2019, impacted by the outbreak of COVID-19 in the last month of the quarter. Consolidated EBITDA for the quarter was at Rs 189 crore as against Rs 169 crore in the same period last year, witnessing a growth of 12% YoY (year-on-year).
Inox Leisure tumbled 10% after the cinema chain operator reported consolidated net loss of Rs 82.15 crore in Q4 March 2020 as against net profit of Rs 48.08 crore in Q4 March 2019. Net sales dropped 22.4% to Rs 371.58 crore in Q4 March 2020 over Rs 478.84 crore in Q4 March 2019, as the COVID-19 crisis impacted financial performance during the quarter. Siddharth Jain, director - INOX Group said, "The advent of COVID-19 has left a serious mark on our 4th Quarter performance and will remain a cause of concern in the subsequent months as well."
Gujarat State Petronet rose 0.34% after consolidated net profit jumped 86.5% to Rs 497.67 crore on 37.18% rise in net sales to Rs 3,151.64 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax stood at Rs 598.71 crore in Q4 March 2020, rising 53.45% from Rs 390.16 crore in Q4 March 2019. Current tax expense rose 40.76% to Rs 118.39 crore in Q4 March 2020 over Q4 March 2019. The result was announced after market hours on Monday, 9 June 2020. The company said volumes increased by 13.3% to 36.78 MMSCMD (million metric standard cubic meter per day) in Q4 March 2020 from 32.45 MMSCMD in Q4 March 2019.
Buzzing Index:
The Nifty Pharma index gained 1.92% to 10,129.85. The index fell 1.45% in the previous session.
Dr. Reddy's Laboratories (up 3.94%), Aurobindo Pharma (up 3.08%), Sun Pharmaceutical Inds (up 2.24%), Lupin (up 2.18%), Cadila Healthcare (up 1.93%), Cipla (up 0.68%) and Divi's Laboratories (up 0.57%) were top gainers.
Stocks in Spotlight:
Adani Green Energy hit an upper circuit of 5% at Rs 312.75 after the company bagged a manufacturing linked solar agreement from the Solar Energy Corporation of India (SECI). As a part of the contract, the company will build 8 GW of solar projects along with a commitment that will see Adani Solar establish 2 GW of additional solar cell and module manufacturing capacity. With this order win, the company will have 15 GW capacity under operation, construction or under contract.
Bharat Heavy Electricals (BHEL) jumped 11.6% after the company successfully commissioned one 270 MW thermal unit at the 4x270 MW Bhadradri Thermal Power Project in Telangana. BHEL's scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of four thermal sets of 270 MW on EPC basis
Affle India rose 2.09% after the company said that its wholly-owned Singapore subsidiary, Affle International, has entered into a definitive share purchase agreement to acquire 66.67% ownership in Appnext incorporated in Singapore (Appnext Singapore) immediately and options to acquire the remaining 28.33% shares and 5% shares of Appnext Singapore within 3 years and 5 years respectively from the closing of the share purchase agreement. Further, Affle MEA FZ-LLC, a subsidiary of Affle International, has entered into an intellectual property (IP) purchase agreement to acquire 100% Tech IP assets of Appnext incorporated in British Virgin Islands (Appnext BVI). A total consideration of $17.25 million for 66.67% of equity ownership and transfer of the Tech IP assets, will be paid over next 12 months from the date of closing of the agreements.
Global Markets:
European markets tumbled while most Asian stocks ended higher on Tuesday. An overnight rally in US market saw the S&P 500 entering positive territory for the year.
In Europe, the revised first-quarter gross domestic product (GDP) numbers will be the primary focus on Tuesday. Final euro zone unemployment data for the first quarter is also due along with French and German export data for April 2020 and Dutch manufacturing output for April 2020.
In US, the Nasdaq posted a record closing high on Monday, while the Dow and S&P 500 ended higher as lockdown measures eased in New York City and elsewhere, sparking optimism about the potential for economy recovery. The Labor Department said Friday that the economy added 2.5 million jobs in May 2020, a record.
Investors were heartened by efforts to reopen the US economy in the aftermath of pandemic-related closures. Reopening plans are in various stages in all 50 U.S. states. New York City, one of the regions hardest hit by coronavirus, launched the first phase of its reopening on Monday, including the restart of construction and limited retail operations.
The US central bank's two-day monetary policy meeting, starting later in the day, may provide some forward guidance as the economy gradually starts showing signs of recovery. Investors also will keep an eye on what the central bank does next, with the Fed set to release its updated policy statement on Wednesday and its first set of economic projections since December.
The World Bank on Monday, 8 June 2020 stated that it expects the global economy to shrink by 5.2%, representing the deepest recession since the World War II despite a positive momentum in the markets.
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