The main indices ended with decent gains on Monday. The Nifty managed to close near the 15,850 level. IT and pharma shares corrected while banks, metals and realty shares were in demand.
The barometer index, the S&P BSE Sensex, rose 395.33 points or 0.75% at 52,880. The Nifty 50 index gained 112.15 points or 0.71% at 15,834.35.
In the broader market, the BSE Mid-Cap index rose 0.35% and the BSE Small-Cap index added 0.78%.
The market breadth was strong. On the BSE, 2,224 shares rose and 1,112 shares fell. A total of 170 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,37,88,043 with 39,77,121 deaths. India reported 4,82,071 active cases of COVID-19 infection and 4,02,728 deaths while 2,97,00,430 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
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The seasonally adjusted India Services Business Activity Index (India Services PMI) stood at 41.2 in June 2021, highlighting a further contraction in output. Moreover, falling from 46.4 in May 2021, the latest reading pointed to the fastest rate of reduction since July 2020. Monitored companies commonly indicated that the intensification of the COVID-19 crisis and tight restrictions curbed demand for services. Subdued demand conditions resulted in a second successive monthly drop in new business received by services firms. The pace of contraction was sharp and the quickest since July 2020.
Meanwhile, India's merchandise exports in June 2021 was at $32.46 billion, an increase of 47.34% over $22.03 billion in June 2020 and an increase of 29.7% over $25.03 billion in June 2019. Merchandise imports in June 2021 was $41.86 billion, an increase of 96.33% over $21.32 billion in June 2020 and an increase of 2.03% over $41.03 billion in June 2019.
Politics:
The Monsoon session of Parliament will commence from 19 July 2021 and will continue till 13 August 2021, an official communication said on Friday, 5 July 2021. Both Lok Sabha and Rajya Sabha issued official orders about the convening of the Monsoon session from 19 July 2021.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.088% as compared with 6.065% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.31, compared with its close of 74.7425 during the previous trading session.
MCX Gold futures for 5 August 2021 settlement rose 0.07% to Rs 47,317.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.05% to 92.18.
In the commodities market, Brent crude for September 2021 settlement rose 14 cents at $76.17 a barrel. The contract rose 33 cents, or 0.44% to settle at $76.17 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia were mixed on Monday. A private survey on China's services sector activity in June showed growth slowing sharply in June to a 14-month low. The Caixin/Markit services Purchasing Managers' Index for June, released Monday, came in at 50.3 a significant decline from May's reading of 55.1.
U.S. markets will remain shut on Monday in observance of Independence Day.
U.S. stocks advanced a second straight week to end Friday, with all three benchmark indexes at fresh all-time highs before heading into a long holiday weekend, after a monthly report employment was better than expected as the economy bounces back from the COVID pandemic.
The U.S. added 850,000 jobs in June, marking the biggest monthly gain since March, and jobs gains in May were raised slightly to 583,0000 from 559,000. Unemployment rose to 5.9% in June from 5.8% in May.
Outside of the jobs data, a reading on factory orders for May showed a 1.7% rise, after a revised 0.1% decline in the prior month, the Commerce Department said Friday. Factory orders have risen in 12 of the last 13 months.
Meanwhile, Organization of the Petroleum Exporting Countries and a Russia - members of the group known as OPEC+ on Friday again delayed a decision about easing output curbs that have been in place to help stabilize crude prices. The oil decision comes as the group is trying to balance the after effects of the COVID pandemic on energy demand and concerns about the impact of variants of the coronavirus in parts of the world against expectations for higher demand as many economies emerge from lockdowns and stay-at-home protocols put in place to limit the pandemic's spread.
New Listing:
Shares of India Pesticides settled at Rs 343.15 on the BSE, at a premium of 15.93% compared with issue price of Rs 296 per share. The scrip was listed at Rs 360 per share, at a premium of 21.62% to the issue price. It hit a high of Rs 368 and a low of Rs 340.15 in the trading session. On the BSE, 21.22 lakh shares of the company were traded in the counter. The initial public offer (IPO) of India Pesticides received bids for 56.07 crore shares as against 1.93 crore shares on offer, according to the stock exchange data. The issue was subscribed 29.04 times. The issue opened for bidding on Wednesday, 23 June 2021, and closed on Friday, 25 June 2021. The price band for the IPO was set at Rs 290-296 per share.
Stocks in Spotlight:
Info Edge (India) rose 1.87%. Info Edge (India), one of the biggest stakeholders of the food-delivery app Zomato, said that it is reducing its offer for sale (OFS) size in Zomato's IPO to Rs 375 crore from Rs 750 crore planned earlier.
In April 2021, the company's board had approved an OFS of Rs 750 crore in the Zomato IPO. In February 2021, Zomato had raised $250 million in funding from five different investors, valuing the online food ordering platform at $5.4 billion.
"On a fully converted and diluted basis, Info Edge's effective stake in Zomato stands at 18.4%," Info Edge had said.
Tata Steel rose 1.84%. The company's India crude steel production rose 55% YoY in Q1 FY22 to 4.62 million tons from 2.99 MT in the same period last year, as Q1 FY21 was impacted due to the COVID-19 pandemic and the stringent nationwide lockdown.
During the quarter, the company's crude steel production decreased 2.6% QoQ due to supply of over 47,800 tons of liquid medical oxygen to hospitals amidst the second wave of COVID-19 pandemic.
The company's India delivery volumes increased by 42% YoY to 4.15 MT in Q1 FY22 from 2.93 MT in Q1 FY21.
The steel deliveries declined 11% QoQ due to partial lockdowns announced by some of states and temporary shutdowns in few steel consuming sectors amidst the second wave of COVID-19 pandemic. To offset the impact, exports were increased to 16% of the total sales as against 11% in Q4 FY21. The domestic market has been improving since mid-Jun'21 with easing lockdowns.
Tata Steel Europe's Steel production grew by 27% YoY to 2.73 MT while steel deliveries increased by 19%YoY to 2.36 MT in Q1 FY22.
Housing Development Finance Corporation (HDFC) rose 0.80%. HDFC said that profit on sale of investments was Rs 263 crore in Q1 FY22 as compared with Rs 1,241 crore in Q1 FY21. The profit on sale of investments was on account of the corporation's entire stake sale in its associate company, Good Host Spaces (Rs 54 crore) and part stake sale of HDFC ERGO General Insurance Company (Rs 209 crore). As at 30 June 2021, HDFC's equity shareholding in HDFC ERGO General Insurance Company stood at 49.98%.
Gross income from dividend for the quarter ended 30 June 2021 was Rs 16 crore as against Rs 298 crore in the corresponding quarter last fiscal. HDFC said that during the quarter ended 30 June 2021, the corporation assigned loans to HDFC Bank amounting to Rs 5,489 crore compared to Rs 1,376 crore in the corresponding quarter of the previous year. The loans were assigned as per the buyback option embedded in the home loan arrangement between the corporation and HDFC Bank. Individual loans sold in the preceding 12 months amounted to Rs 23,093 crore as against Rs 18,273 crore in the same period last year.
HDFC Bank rose 0.97%. The bank's advances aggregated to approximately Rs 11,47,500 crore as of 30 June 2021, rising around 14.4% over Rs 10,03,300 crore as of 30 June 2020. The bank's advances grew around 1.3% as of 30 June 2021 from Rs 11,32,800 crore as of 31 March 2021. As per the Basel 2 segment classification among the bank's advances, the domestic retail loans as of 30 June 2021 grew by around 10.5% over 30 June 2020 and remained at a level similar to that as of 31 March 2021. The domestic wholesale loans as of 30 June 2021 grew by around 17% over 30 June 2020 and around 2% over 31 March 2021. Among loan categories, the retail loans grew by around 9% over 30 June 2020 and were lower by around 1% as compared to 31 March 2021. The commercial & rural banking loans grew by around 25% over 30 June 2020 and around 4% over 31 March 2021; and other wholesale loans grew by around 10.5% over 30 June 2020 and around 1.5% over 31 March 2021.
IndusInd Bank rose 1.01% after the bank's deposits increased 26% to Rs 2,67,629 crore as on 30 June 2021 from Rs 2,11,800 crore as on 30 June 2020. Retail deposits and deposits from small business customers amounted to Rs 1,05,737 crore as of 30 June 2021 compared with Rs 95,811 crore as of 31 March 2021. Net advances of the bank rose by 7% to Rs 2,11,159 crore as on 30 June 2021 from Rs 1,98,069 crore as on 30 June 2020. CASA ratio was at 42.1% as on 30 June 2021 as against 40.1% as on 30 June 2020 and 41.8% as on 31 March 2021.
Yes Bank fell 0.66%. The private sector bank said loans & advances declined by 0.4% to Rs 163,914 crore as on 30 June 2021 from Rs 164,510 crore as on 30 June 2020. The loans & advances issued are lower by 1.8% as compared with Rs 166,893 crore as on 31 March 2021. The bank's deposits have increased by 39.1% to Rs 163,295 crore as on 30 June 2021 from Rs 117,360 crore as on 30 June 2020. The figures has risen by 0.2% from Rs 162,947 crore as on 31 March 2021.
Federal Bank advanced 2.23%. The private lender on Sunday announced that its total deposits increased 9% to Rs 1,69,393 crore as of 30 June 2021 compared to Rs 1,54,938 crore reported on 30 June 2020. Sequentially, deposits fell 1.88% as of 30 June 2021 from Rs 1,34,877 crore as on 31 March 2021. At the end of the June 2021, the private lender's customer deposits were at Rs 1,64,603 crore (up 10% Y-o-Y), interbank deposits were at Rs 2,362 crore (down 17% Y-o-Y) and certificates of deposit stood at Rs 2,428 crore (down 9% Y-o-Y). CASA rose 19% to Rs 58,959 crore as of 30 June 2021 from Rs 49,616 crore registered in 30 June 2020. CASA ratio improved to 34.81% at the end of 30 June 2021 from 32.02% recorded on 30 June 2021. Federal Bank's gross advanced grew by 8% to Rs 132,770 crore as of 30 June 2021 from Rs 1,23,430 crore posted on 30 June 2020. On a sequential basis, gross advances fell 1.56% from 1,34,877 crore posted in 31 March 2021. The bank's liquidity coverage ratio was at 215.20% as on 30 June 2021, falling from 233.14% posted on 30 June 2020.
Heranba Industries rallied 5.39% after the company said that it has received environmental clearance for manufacturing at its Sarigam plant in Gujarat. The environmental clearance, received from Ministry of Environment, Forest and Climate Change (MoEFCC) of Government of India, is for expansion of the company's Gujarat-based pesticides intermediates, fungicides, herbicides, insecticides manufacturing plant. The company has an existing land parcel measuring 55,000 sq.mt. at Sarigam and no additional land will be required for the proposed expansion. The company has developed greenbelt in area of 5,500 sqm and will develop greenbelt in an area of 12,650 sqm covering 33% of the project area. This expansion plan will entail setting up an additional manufacturing capacity of 24,900 Tonnes per Annum (TPA) for manufacturing of insecticides, fungicides, herbicides and pesticides intermediates. The estimated cost for this expansion is Rs 110 crore, which includes an existing investment of Rs 20 crore.
Panacea Biotec surged 5.45% after the company said it received manufacturing license from Drug Controller General (India) for Sputnik V vaccine against Covid-19. The license is a necessary condition for using Sputnik V produced by Panacea Biotec in India. The batches produced at Panacea Biotec's facilities at Baddi, Himachal Pradesh were earlier shipped to the Gamaleya Center in Russia for quality control. The batches have passed all the checks for quality parameters both at the Gamaleya Center in Russia and at the Central Drug Laboratory, Kasauli, Himachal Pradesh in India. Sputnik V was registered in India under the emergency use authorization procedure on 12 April 2021 and vaccination against COVID-19 with the Russian vaccine started on 14 May 2021. Sputnik V has been registered in 67 countries globally with total population of over 3.5 billion people. The vaccine is based on a proven and well-studied platform of human adenoviral vectors and uses two different vectors for the two shots in a course of vaccination, providing immunity with a longer duration than vaccines using the same delivery mechanism for both shots.
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