Sensex drops 446 pts; breadth turns weak

The main indices further extended losses and hit fresh intraday low in mid morning trade. All sectoral indices on the NSE traded were in the red. Global cues were weak amid mounting concerns about the rapidly surging delta variant of the COVID-19 in several countries.

At 11:21 IST, the barometer index, the S&P BSE Sensex, tumbled 445.94 points or 0.85% at 52,107.79. The Nifty 50 index was down 147.25 points or 0.93% at 15,605.75.

In broader market, the S&P BSE Mid-Cap index was down 1.8% while the S&P BSE Small-Cap index declined 2.18%.

The market breadth was weak. On the BSE, 829 shares rose and 2225 shares fell. A total of 100 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 190,426,223 with 4,089,030 global deaths.

India reported 406,130 active cases of COVID-19 infection and 414,482 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Bank index slumped 1.77% to 34,457.05. The index has lost 4% in three days.

RBL Bank (down 2.63%), Federal Bank (down 2.62%), IDFC First Bank (down 2.57%), AU Small Finance Bank (down 2.08%), PNB (down 1.99%), ICICI Bank (down 1.93%), HDFC Bank (down 1.89%) and Bandhan Bank (down 1.88%) declined.

IndusInd Bank fell 2.48%. The bank said that a meeting of the board of directors of the bank is scheduled to be held on Friday, July 23, 2021, to consider the proposal of raising funds through various modes

Earnings Impact:

Mastek rose 1.83% to Rs 2,538.45 after the company's consolidated net profit rose 6% to Rs 80.20 crore on 6.9% increase in total revenue from operations to Rs 516.50 crore in Q1 FY22 over Q4 FY21. Consolidated total EBITDA grew 7.6% to Rs 117.50 crore in Q1 FY22 as against Rs 109.20 crore in Q4 FY21. EBITDA margin improved to 22.5% during the quarter compared with 22.4% during Q4 March 2021. In constant currency, revenue from operations rose 4.3% Q-o-Q (quarter-on-quarter) and 27.2% Y-o-Y (year-on-year) to $70.2 million in Q1 FY22. Mastek added 40 new clients in Q1 FY22. The total client count as of 30 June 2021 stood at 651 (LTM) as compared to 639 (LTM) in Q4 FY21..

Supreme Petrochem slumped 4.36%. The company's standalone net profit surged to Rs 231.70 crore in Q1 FY22 from Rs 23.51 crore in Q1 FY21. Net sales during the quarter increased by 91.6% YoY to Rs 1267.33 crore. As compared with Q4 FY21, the company's net profit and net sales have risen by 35% and 36.4%, respectively. The company reported a pre-tax profit of Rs 311.10 crore in Q1 FY21. It had recorded a pre-tax profit of Rs 30.57 crore in Q1 FY21.

Global Markets:

Asian shares were trading lower on Tuesday, following an overnight tumble for stocks on Wall Street and concerns about the spread of the delta coronavirus variant. Markets in Indonesia, Malaysia and Singapore are closed on Tuesday for holidays.

On Tuesday, China kept unchanged its benchmark lending rate for corporate and household loans the one-year Loan Prime Rate (LPR) held steady at 3.85% while the five-year LPR was also left at 4.65%.

Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities -- including the sprawling Microsoft Exchange hack earlier this year.

U.S. stocks dropped sharply on Monday on concern a rebound in Covid cases would slow global economic growth. Covid cases have rebounded in the U.S. this month, with the delta variant spreading among the unvaccinated. Cases were already flaring up around the world because of the delta variant.

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