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Sensex closes above 50k, Nifty ends near 14,800 mark

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Capital Market
Last Updated : Feb 03 2021 | 5:32 PM IST
Benchmark indices surged for third consecutive session on Wednesday, as euphoria surrounding the Union Budget continued. The Nifty closed tad below the crucial 14,800 mark after scaling that level in intraday trade. The BSE Sensex closed above 50,000 mark for the first.

As per the provisional closing data, the S&P BSE Sensex, soared 458.03 points or 0.92% at 50,255.75. The Nifty 50 index surged 142.1 points or 0.97% at 14,789.95.

The Sensex scaled record high of 50,526.39 while the Nifty recorded an all-time high of 14,868.85 in intraday trade.

The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.38% while the S&P BSE Small-Cap index gained 1.47%.

Buyers outnumbered sellers. On the BSE, 1,790 shares rose and 1,196 shares fell. A total of 155 shares were unchanged.

COVID-19 Update:

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Total COVID-19 confirmed cases worldwide stood at 10,38,77,370 with 22,53,170 deaths. India reported 1,60,057 active cases of COVID-19 infection and 1,54,596 deaths while 1,04,62,631 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

New Listing:

Shares of Home First Finance Company India were trading at Rs 525.15 at 15:20 IST on the BSE, at a premium of 1.38% over the initial public offer price of Rs 518. The stock was listed at Rs 612.15, at a premium of 18.18% to the initial public offer (IPO) price. So far the stock hit a high of Rs 639.50 and low of Rs 522.90. On the BSE, 19.86 lakh shares were traded on the counter so far. The initial public offer (IPO) of Home First Finance Company India received bids for 41.64 crore shares as against 1.56 crore shares, according to the stock exchange data. The issue was subscribed 26.66 times.

Nifty Results Today:

Bharti Airtel was up 1.51% ahead of its quarterly results today.

Earnings Impact:

Tata Consumer Products gained 0.69%. On a consolidated basis, the company reported a 29% rise in net profit to Rs 237 crore on 23% increase in revenue from operations to Rs 3,070 crore in Q3 FY21 over Q3 FY20. The growth in revenue was driven by strong growth across India and International business. Sequential recovery continues for our out-of-home India businesses i.e. NourishCo & Tata Starbucks. On the segmental front, total branded business revenue rose by 26% to Rs 2,832 crore while the non branded business revenue increased by 4% to Rs 246 crore in Q3 December 2020 over Q3 December 2019. In the Branded business, the growth was led by India Beverages (up 46% YoY), followed by India Foods (up 19% YoY) and International Beverages (up 9% YoY). EBITDA for the quarter is up 12% year-on-year (YoY) to Rs 365 crore, primarily driven by strong profit delivery in International & India Foods business which more than offset the adverse impact of tea inflation in India beverages business. EBITDA margin was at 11.9% as on 31 December 2020, lower than 13.1% as on 31 December 2019.

Ajanta Pharma spurted 3.74% after consolidated net profit soared 64.2% to Rs 176.63 crore on 15% increase in net sales to Rs 748.74 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) jumped 23.1% to Rs 215.47 crore in Q3 December 2020 as against Rs 175.10 crore in Q3 December 2019. Consolidated EBITDA grew 30% Y-o-Y (year-on-year) to Rs 242 crore in Q3 FY21 as against Q3 FY20, which was 32% of revenue from operations. The Q3 FY21 India sales surged 13% to Rs 220 crore as against Rs 195 crore in Q3 FY20. The Q3 FY21 total export sales stood at Rs 524 crore over Rs 448 crore in Q3 FY20, recording a growth of 17% Y-o-Y.

PI Industries soared 8.98% after the company's consolidated net profit surged 61.4% to Rs 195.40 crore on 36.7% rise in net sales to Rs 1,162.10 crore in Q3 December 2020 over Q3 December 2019. Consolidated EBITDA spurted 48% to Rs 187 crore in Q3 December 2020 over Q3 December 2019. EBITDA margin stood at 24% in Q3 FY21 as against 22% in Q3 FY20. The Q3 exports jumped 40% Y-o-Y (year-on-year) with pro-active raw material planning along with efficient capacity utilisation.

Ratnamani Metals & Tubes declined 2.76% after the company's consolidated net profit tanked 40.5% to Rs 60.15 crore on 41.7% decline in net sales to Rs 440.79 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) dropped 27.5% to Rs 74.14 crore in Q3 December 2020 as against Rs 102.33 crore in Q3 December 2019.

NOCIL gained 1.82% after the company reported a 6.3% rise in consolidated net profit to Rs 22.31 crore on a 41.3% rise in net sales to Rs 274.57 crore in Q3 FY21 over Q3 FY20. The specialty chemical maker's consolidated profit before tax rose 2.4% year on year to Rs 30.11 crore in Q3 FY21. The company's consolidated operating EBITDA grew by 3% to Rs 38 crore in Q3 FY21 from Rs 37 crore posted in the same period last year. Operating EBITDA margin fell to 13.7% in Q3 FY21 from 18.8% in Q3 FY20.

Bajaj Consumer Care was locked in an upper circuit of 20% at Rs 255.95 after the company's net profit rose by 17.54% to Rs 57.29 crore on a 18.08% increase in net sales to Rs 243.91 crore in Q3 FY21 over Q3 FY20. Profit before tax in Q3 December 2020 stood at Rs 69.59 crore, up by 17.32% from Rs 59.32 crore in Q3 December 2019.

Butterfly Gandhimathi Appliances hit an upper circuit of 10% at Rs 585.35 after the company's net profit surged over 16 times to Rs 18.71 crore in Q3 FY21 from Rs 1.11 crore in Q3 FY20. Net sales during the quarter rose by 70.70% year-on-year (YoY) to Rs 297.90 crore.

Vinati Organics fell 0.53%. The company's net profit declined by 4% to Rs 64.14 crore on a 6.3% fall in net sales to Rs 223.47 crore in Q3 FY21 over Q3 FY20. Profit before tax in Q3 December 2020 stood at Rs 70.60 crore, down by 20.5% from Rs 88.86 crore in Q3 December 2019. Current tax outgo declined by 79.3% year-on-year (Y-o-Y) to Rs 4.08 crore in the third quarter. Due to COVID-19 related slowdown, financial numbers during the third quarter ended 31 December 2020 have been impacted. Separately, the company informed that its board had approved a scheme of amalgamation of Veeral Additives (VAPL) into Vinati Organics (VOL) in their meeting held on 2 February 2021.

Global Markets:

Shares in Europe and Asia advanced on Wednesday on positive market sentiment amid a busy week of earnings reports.

Japan's services sector shrank at the fastest pace in five months in January. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) dropped to a seasonally adjusted 46.1 from the prior month's 47.7, marking the lowest reading since August.

US stocks finished sharply higher for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a US pandemic relief package.

Meanwhile, investors will be following stimulus negotiations in Washington, after congressional Republicans made a counteroffer to President Joe Biden's $1.9 trillion stimulus plan on Sunday.

Biden met with those lawmakers on Monday as congressional Democrats moved toward passing a reconciliation bill without bipartisan support. White House Press Secretary Jen Psaki described the meeting as substantive and productive.

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First Published: Feb 03 2021 | 3:35 PM IST

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