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Sensex gains 125 pts; Nifty ends above 16,250 led by private banks

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Capital Market
Last Updated : Aug 09 2021 | 5:06 PM IST

The domestic equity benchmarks managed to end with decent gains on Monday. The Nifty closed above the 16,250 mark. Private banks advanced while PSU banks tumbled. Metal and realty shares were under pressure.

The barometer index, the S&P BSE Sensex, advanced 125.13 points or 0.23% to 54,402.85. The Nifty 50 index added 20.05 points or 0.12% to 16,258.25.

Mahindra & Mahindra (up 2.18%), Axis Bank (up 1.87%), ICICI Bank (up 0.77%), Infosys (up 0.77%) and HDFC Bank (up 0.67%) supported the indices.

Bharti Airtel (down 1.61%), Larsen & Toubro (down 0.74%) and Reliance Industries (down 0.56%) were major drags.

In the broader market, the BSE Mid-Cap index fell 1.07% and the BSE Small-Cap index lost 0.72%.

The market breadth was weak. On the BSE, 1291 shares rose and 2039 shares fell. A total of 146 shares were unchanged.

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COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 20,27,31,589 with 42,94,400 deaths. India reported 4,02,188 active cases of COVID-19 infection and 4,28,309 deaths while 3,11,39,457 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India has reported 35,499 new cases and 447 deaths in the last 24 hours, as per a government health bulletin. Active caseload in the country currently stands at 4,02,188. A recovery rate of 97.40% was recorded.

Meanwhile, Johnson and Johnson's single-dose COVID-19 vaccine has been given approval for emergency use in India. Now India has five Emergency Use Authorization vaccines.

Mumbai Suburban local train services will be available for common man from 15th August. Maharashtra Chief Minister Uddhav Thackeray announced that those people who have completed 14 days after taking 2nd dose of COVID-19 vaccine will be allowed to commute via local trains.

Economy:

Prime Minister Narendra Modi will release the next instalment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme on 9 August 2021 at 12:30 PM via video conferencing.

This will enable the transfer of an amount of more than Rs 19,500 crore to more than 9.75 crore beneficiary farmer families Under the PM-KISAN scheme, a financial benefit of Rs 6,000 per year is provided to the eligible beneficiary farmer families, payable in three equal 4-monthly installments of Rs 2,000 each. The fund is transferred directly to the bank accounts of the beneficiaries.

In this scheme, Samman Rashi of over Rs 1.38 lakh crore has been transferred to farmer families so far. Union Agriculture Minister will also be present on the occasion.

Monsoon Session:

Lok Sabha today passed the Constitution (Scheduled Tribes) Order (Amendment) Bill, 2021, the Limited Liability Partnership (Amendment) Bill, 2021 and the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021. In Rajya Sabha, Finance Minister Nirmala Sitharaman will look to pass the Tribunals Reforms Bill, 2021.

Lok Sabha has been adjourned till 11 am on Tuesday. The ongoing Monsoon Session of Parliament is scheduled to conclude on 13 August.

The Limited Liability Partnership (Amendment) Bill, 2021 seeks to amend the Limited Liability Partnership Act, 2008 to facilitate greater ease of living to law-abiding corporate and to decriminalize certain provisions of the Act. The Finance Minister said that the Bill aims at bring in easy-of-doing business between smaller and big partners. The Bill has already been passed in Rajya Sabha.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.221% as compared with 6.234% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.2650, compared with its close of 74.1575 during the previous trading session.

MCX Gold futures for 5 October 2021 settlement fell 1.12% to Rs 46,119.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01% to 92.79.

In the commodities market, Brent crude for October 2021 settlement fell $2.50 at $68.20 a barrel. The contract fell 59 cents, or 0.83% to settle at $70.70 a barrel in the previous trading session.

Foreign Markets:

European shares edged lower while most Asian stocks ended higher on Monday. Markets in Japan and Singapore were closed for public holidays.

Investors are awaiting key U.S. inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

China's export growth unexpectedly slowed in July while imports also lost momentum. Exports rose 19.3% from a year ago, compared with a 32.2% gain in June and imports rose 28.1% from a year earlier.

In US, the Dow and the S&P 500 indexes closed at record highs on Friday following a stronger-than-expected jobs report, while investors shrugged off concerns over the Delta variant impacting a nascent economic recovery.

Hiring surged in July as American employers added 943,000 jobs. The unemployment rate dropped to 5.4% another sign that the U.S. economy continues to bounce back with surprising vigor from last year's coronavirus shutdown.

New Listing:

Shares of Rolex Rings were trading at Rs 1166.55, at a premium of 29.62% as compared to the issue price of Rs 900 per share. The stock listed at price of Rs 1,249 per share, representing 38.78% premium to the issue price.

The stock has hit a high of Rs 1264.95 and a low of Rs 1105 during the day. Over 10.79 lakh shares of the company were traded in the counter on the BSE.

The initial public offer of automotive component maker Rolex Rings received bids for 74.15 crore shares as against 56.85 lakh shares on offer. The issue was subscribed 130.43 times. The issue opened for bidding on Wednesday (28 July 2021) and closed on Friday (30 July 2021).

Buzzing Index:

The Nifty Metal index fell 1.87% to 5,732. The index rose 1.41% in the past two sessions.

Ratnamani Metals & Tubes (down 2.96%), NMDC (down 1.99%), Coal India (down 1.85%), Vedanta (down 1.64%), Hindalco Industries (down 1.61%), JSW Steel (down 1.61%), Tata Steel (down 1.42%), Jindal Steel & Power (down 1%), MOIL (down 0.96%), Hindustan Zinc (down 0.3%) and APL Apollo (down 0.18%) tumbled.

National Aluminium Company (NALCO) slumped 11.68%. The company's consolidated net profit soared 1982% to Rs 347.48 crore on 79.2% jump in net sales to Rs 2,474.55 crore in Q1 June 2021 over Q1 June 2020. Increase in revenues was mainly propelled by strong demand, higher volumes, better realization and effective capacity utilization of its operational units.

Steel Authority of India (SAIL) fell 4.89%. The company reported consolidated net profit of Rs 3,897.4 crore in Q1FY22 as against net loss of Rs 1,226.5 crore in Q1FY21. Total income jumped to Rs 20,754.75 crore from Rs 9346.21 crore YoY.

Stocks in Spotlight:

Quick Heal Technologies slumped 17.73%. On the BSE, over 2.08 lakh shares of the company were traded in the counter so far as against an average trading volume of 0.36 lakh shares in the past two weeks. The software product company posted a 75% fall in consolidated net profit to Rs 6.18 crore on 25.4% decline in net sales to Rs 54.78 crore in Q1 FY22 over Q1 FY21.

Axis Bank rose 1.87%. The bank said it has an exposure of Rs 648 crore to Future Group entities as on 30 June 2021. The bank has an exposure of Rs 305 crore to Future Retail, Rs 164 crore to Future Enterprises and Rs 179 crore to other Future group entities as on 30 June 2021.

The information was made public in clarification to certain messages on social media wherein it was mentioned that an Axis Bank led consortium has an exposure of Rs 16,000 crore to the Future Group. The bank had also received queries seeking more information on its exposures to the Future group.

Trouble for lenders of Future Group companies resurrected after the Supreme Court on Friday (6 August 2021) ruled in favour of Amazon in its long-running dispute with Kishore Biyani-led group on its merger deal with Reliance Industries.

Zee Entertainment Enterprises slipped 2.77%. The company posted a consolidated net profit of Rs 213.8 crore in Q1 FY22, higher than net profit of Rs 30.37 crore in Q1 FY21. Net sales increased 35% to Rs 1775 crore in Q1 FY22 from Rs 1312 crore posted in Q1 FY21. While Advertising revenue soared 120% to Rs 926.61 crore, Subscription revenue increased by 9.2% to Rs 813 crore in Q1 FY22 over Q1 FY21.

Divi's Laboratories shed 0.08%. The pharmaceutical major's consolidated net profit jumped 13.2% to Rs 557.11 crore on a 13.3% surge in net sales to Rs 1,960.64 crore in Q1 June 2021 over Q1 June 2020.

Sona BLW Precision Forgings jumped 16.56%. The auto ancillary company's consolidated net profit jumped 37.7% to Rs 82.23 crore on 7.1% decline in net sales to Rs 500.75 crore in Q1 FY22 over Q4 FY21. The company's net order book stood at Rs 14,000 crore as of 30 June 2021.

Tata Power declined 2.29%. On a consolidated basis, the company's net profit surged 73.7% to Rs 465.69 crore on a 54.5% jump in net sales to Rs 9,968.03 crore in Q1 June 2021 over Q1 June 2020. The company's consolidated Q1 FY22 revenues grew mainly due to the acquisition of Odisha Discoms and higher sales/execution in its solar EPC businesses.

Dr Praveer Sinha, the managing director (MD) and chief executive officer (CEO) of Tata Power Co., said: We are happy to announce our re-entry into the development of greenfield Transmission Projects. Our partnership with the country's leading T&D EPC player 'Tata Projects' will make us a force to reckon with.

BASF India jumped 7.39%. The chemical maker posted a net profit of Rs 197.28 crore in Q1 FY22 as against a net loss of Rs 31.18 crore reported in Q1 FY21. Net sales surged 68.8% to Rs 3,009.55 crore in Q1 FY22 over Q1 FY21.

Chemcon Speciality Chemicals tumbled 7.10%. The chemical maker posted a 13.4% decline in net profit to Rs 13.41 crore on 20% fall in revenue from operations to Rs 57.2 crore in Q1 FY22 over Q4 FY21. On a year-on-year basis, the company's net profit increased 51.8% on 25.2% rise in revenue from operations in Q1 FY22 over Q1 FY21.

Bank of Baroda fell 2.64%. The state-run bank posted a standalone net profit of Rs 1,208 crore in Q1 FY22 compared with net loss of Rs 864.26 crore in Q1 FY21. Total income fell 1.4% to Rs 20,022 crore in Q1 FY22 as compared to Rs 20,312 crore in Q1 FY21.

Provisions and contingencies declined 23.14% to Rs 4,112 crore in Q1 FY22 from Rs 5,350 posted in Q1 FY21. On the asset quality front, gross NPA ratio declined to 8.86% as on 30 June 2021 against 9.39% as on 30 June 2020. Recovery and upgrades increased to Rs 4,435 crore in Q1FY22 as against Rs 818 crore in Q1FY22. Bank's net NPA ratio increased to 3.03% as on 30 June 2021 as against 2.83% as on 30 June 2020.

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First Published: Aug 09 2021 | 4:50 PM IST

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