A weak economic outlook by the US Fed and worries about a second wave of coronavirus infections weighed on domestic and global markets. Domestic investors shrugged off a number of measures announced by the Indian government to support MSMEs and NBFCs.
As per provisional closing, the barometer S&P BSE Sensex tumbled 885.72 points or 2.77% at 31,122.61. The Nifty 50 index lost 233.45 points or 2.49% at 9,150.55.
The Nifty saw a gap down opening at 9,213.95. The index traded sideways with steep losses till afternoon session. Selling pressure intensified in afternoon which dragged the index below 9200 level.
In the broader market, the S&P BSE Mid-Cap index fell 0.39% while the S&P BSE Small-Cap index declined 0.63%.
The market breadth was negative. On the BSE, 976 shares rose and 1350 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 40 stocks declined.
COVID-19 Update:
More From This Section
Total COVID-19 confirmed cases worldwide stood at 43,48,246 far with 2,97,220 deaths. India reported 49,219 active cases of COVID-19 infection and 2,549 deaths, according to the data from the Ministry of Health and Family Welfare.
Buzzing Index:
The Nifty IT index slumped 3.43% to 13,304. The index jumped 3.64% in past four days.
MindTree (down 5.27%), Infosys (down 5.24%), Tech Mahindra (down 5.09%), NIIT Technologies (down 4.3%), Hexaware (down 3.13%), TCS (down 2.23%), Wipro (down 1.85%), Tata Elxsi (down 1.73%) and HCL Technologies (down 1.59%) were top losers in IT segment.
Q4 Results Today:
AAVAS Financiers (up 1.42%), Biocon (up 0.71%), Indiabulls Real Estate (down 1.17%), Mahindra Lifespace Developers (down 0.68%), Indian Energy Exchange (up 0.55%), Manappuram Finance (up 2.47%), Oracle Financial Services Software (up 0.33%), Tata Consumer Products (up 1.31%), Mahindra EPC Irrigation (up 1.48%) and Zensar Technologies (up 0.24%) are some of the companies that will announce their quarterly results today.
Earnings Impact:
Escorts reported 9.71% rise in consolidated net profit to Rs 127.73 crore on a 15.97% fall in revenue from operations to Rs 1385.65 crore in Q4 March 2020 over Q4 March 2019. Tractor sales fell 20% 20,108 units in quarter ended March 2020 as against 25,136 units in the corresponding period last fiscal. Construction equipment sales were down 32.2% to 986 units in Q4 FY20 as against 1,455 units in Q4 FY19. Accordingly, revenue from agri-machinery products stood at Rs 1060.51 crore (down 14.80% YoY) and construction equipments revenue was at Rs 210.02 (down 28.32% YoY). Income from sale of railway equipments rose 4.33% YoY to Rs 107.97 crore during the quarter. Order book for the company's railway division stood at more than Rs 500 crore as at end of March 2020, that will get executed in the next 12 - 15 months. Shares of Escorts fell 1.95% to Rs 796.40.
Godrej Consumer Products added 5.55%. On a consolidated basis, Godrej Consumer Products reported a 75.42% drop in net profit to Rs 229.90 crore on a 12.2% drop in net sales to Rs 2132.69 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) fell 32.54% to Rs 337.30 crore in Q4 March 2020 over Q4 March 2019. Consolidated business EBITDA declined 18% year on year (YoY) in Q4 March 2020 while consolidated constant currency EBITDA declined by 15% year-on-year in the same period. The company said consolidated EBIDTA margins declined to 22.3%. The company said it has temporarily deferred its outlook for FY21 driven by progression of COVID-19 and related uncertainties. The company said complete pause on sales due to disruption of both back end and front end supply chain took a hit.
Schaeffler India lost 0.31% after net profit fell 26.4% to Rs 78.35 crore on 20.8% decline in net sales to Rs 928.54 crore in Q1 March 2020 over Q1 March 2019. Total expenditure contracted by 19.9% to Rs 791.28 crore and interest payments fell 21.7% to Rs 0.94 crore in Q1 CY2020 over Q1 CY2019. Depreciation costs during the quarter stood at Rs 44.42 crore, up by 17.5% from Rs 37.81 crore reported in the corresponding period last year. Profit before tax (PBT) fell 32.2% to Rs 110.07 crore in Q1 CY2020 from Rs 162.26 crore reported in Q1 CY2019. Current tax expenses stood at Rs 32 crore in Q1 March 2020, down by 39.1% from Rs 52.55 crore in Q1 March 2019.
Siemens gained 0.98% after consolidated net profit tumbled 38.17% to Rs 175.70 crore on 21% decrease in net sales to Rs 2,756.90 crore in Q2 March 2020 over Q2 March 2019.The decline in revenues across the businesses is primarily due to deferred offtake by customers and slow-down in short-cycle business related to COVID-19 pandemic as well as continued weaker demand in large infrastructure projects. Siemens' order backlog for Q2 March 2020 stood at Rs 12,547 crore.
Mphasis shed 0.21%. Consolidated net profit jumped 20.30% to Rs 353.23 crore on a 3.05% increase in net sales to Rs 2,346.15 crore in Q4 March 2020 over Q3 December 2019. Consolidated profit before tax soared 7.37% to Rs 414.99 crore in Q4 March 2020 as against Rs 386.50 crore in Q3 December 2019. Total tax expenses dropped 33.51% at Rs 61.76 crore in Q4 March 2020 as compared to Rs 92.90 crore paid in Q3 December 2019. The Q4 earnings were declared post trading hours yesterday, 13 May 2020.
ABB India slipped 2% after it reported 25.84% fall in profit after tax to Rs 66 crore on a 17.73% decline in revenues to Rs 1,522 crore in Q1 March 2020 over Q1 March 2019. Orders rose 9.72% to Rs 1,953 in Q1 CY2020 from Rs 1,780 in Q1 CY2019. Operational EBITA contracted by 65.87% to Rs 43 crore in Q1 March 2020 from Rs 126 crore in Q1 March 2019. Operational EBITA margin stood at 2.8% in Q1 CY2020 as compared to 6.8% in Q1 CY2019. Profit before tax in the first quarter of CY2020 fell to Rs 87 crore, down by 37.41% from Rs 139 crore reported in the corresponding period last year.
Stocks in Spotlight:
Lupin gained 2.06% after the company said its active pharmaceutical ingredient facility in Visakhapatnam received establishment inspection report from the US drug regulator. The US Food and Drug Administration (USFDA) conducted the inspection of the Visakhapatnam (Vizag) facility between 13 and 17 January 2020.
CSB Bank slipped 1.88% to Rs 18.55. The bank said its total deposits rose 4.41% to Rs 15,790.66 crore (provisional) in Q4 March 2020 over Q4 March 2019. Out of the total deposits, CASA deposits grew 9.40% to Rs 4606.58 crore and term deposits rose 4.30% to Rs 11,184.08 crore year-on-year (YoY) during the quarter. Advances against gold & gold jewellery jumped 28.54% to Rs 3790.11 crore in Q4 March 2020 over Q4 March 2019. Gross advances were up 6% to Rs 11,558.9 crore. Liquidity coverage ratio stood at 245% as compared to 214.80% during the same period last year.
HUDCO on Thursday (14 May) said it achieved loan sanctions of Rs 19942.04 crore and loan releases of Rs 10121.83 crore as on 31 March 2020 for the financial year 2019-2020. Shares of HUDCO rose 0.21% to Rs 23.75 on BSE.
PNC Infratech was locked in an upper circuit of 5% after the company said that NHAI has declared the company as lowest bidder for a highway project in Uttar Pradesh under Bharatmala Pariyojana on Hybrid Annuity Mode (HAM) for Rs 1,412 crore.
Global Markets:
European shares were trading lower while Asian markets ended in the red as fresh worries about a second wave of coronavirus infections dented sentiment.
On the economic data front, seasonally adjusted employment in Australia fell by 594,300 people in April as compared to March, according to data released by the country's Bureau of Statistics on Thursday.
In US, stock benchmarks closed sharply lower Wednesday as Wall Street digested a grim near-term economic outlook from Federal Reserve Chairman Jerome Powell, amid attempts by state and federal officials to restart businesses from a coronavirus-induced lockdown.
Powell gave a solemn assessment of the US economy and called for more government spending if that is what it takes to avoid "long-term economic damage" from the coronavirus pandemic.
Meanwhile, President Donald Trump on Wednesday said that top coronavirus health expert Dr. Anthony Fauci's recent warning about the potentially dire consequences of reopening states.
Powered by Capital Market - Live News