The main equity indices ended a lacklustre trading session with small losses on Friday. The Nifty ended a tad below 15,700 after hitting the day's low of 15,632.75. Metal, pharma and realty stocks climbed while banks and financial shares were under pressure. Negative cues from other Asian indices put pressure on domestic shares.
The barometer index, the S&P BSE Sensex, skid 182.75 points or 0.35% at 52,386.19. The Nifty 50 index slipped 38.10 points or 0.24% at 15,689.80.
Tata Steel (up 4.16%), Bajaj Finserv (up 3.55%) and Bharti Airtel (up 2.05%) supported the indices.
The broader market advanced. The S&P BSE Mid-Cap index gained 0.61% while the S&P BSE Small-Cap index gained 0.39%.
Buyers outpaced sellers. On the BSE, 1,898 shares rose and 1,294 shares fell. A total of 161 shares were unchanged.
COVID-19 Update:
Also Read
Total COVID-19 confirmed cases worldwide stood at 18,55,64,006 with 40,10,652 deaths. India reported 4,58,727 active cases of COVID-19 infection and 4,05,939 deaths while 2,98,88,284 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The Union Cabinet has approved a new scheme India COVID-19 Emergency Response and Health System Preparedness Package: Phase-II amounting to Rs 23,123 crore for financial year 2021-22. The scheme aims at accelerating health system preparedness for immediate responsiveness for early prevention, detection and management, with the focus on health infrastructure development.
India reported 43,393 new cases in last 24 hours on Friday, 9 July 2021. 911 deaths were also reported due to the coronavirus in last 24 hours.
Economy:
The Union Cabinet has approved the proposal of allowing the Agriculture Produce Market Committees (APMCs) to use the one lakh rupees Agriculture Infrastructure Fund which has been announced as part of the Atmanirbhar Bharat Package. Addressing media in New Delhi, Agriculture Minister Narendra Singh Tomar said now APMCs will be eligible to get the benefits of this fund to improve their infrastructure. He said APMCs will be further strengthened and mandis will not be abolished.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 74.6425 compared with its previous closing of 74.71.
MCX Gold futures for 5 August 2021 settlement rose 0.16% to Rs 47,799.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 92.425.
The yield on 10-year benchmark federal paper rose to 6.186% from its previous close of 6.124%.
In the commodities market, Brent crude for September 2021 settlement rose 62 cents to $74.74 a barrel.
Global Markets:
European shares advanced while most Asian stocks declined on Friday as Covid worries resurfaced in the region.
China's consumer price index for June rose 1.1% as compared with a year ago, data from the country's National Bureau of Statistics showed on Friday. The producer price index for June 2021 rose 8.8% as compared with a year ago. The June 2021 PPI reading was a slight decrease in pace from the 9% increase in May 2021.
Olympics organizers will ban spectators from the upcoming summer games in Tokyo, after a state of emergency for the city was declared by Japan on Thursday as the country sees rising COVID-19 cases. The state of emergency will last till August 22.
South Korea on Friday announced that the greater Seoul area will be placed under the toughest social distancing rules of Level 4, as per reports. The city of Sydney earlier this week announced that COVID-19 restrictions would be extended by another week.
Wall Street lost ground on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs in a broad sell-off driven by uncertainties surrounding the pace of the U.S. economic recovery.
Buzzing Segment:
The Nifty Realty index jumped 2.38% to 366.15. The index fell 0.57% in the previous session.
Sunteck Realty (up 6.75%), DLF (up 4.78%), Brigade Enterprises (up 3.61%), Prestige Estates Projects (up 2.58%), Indiabulls Real Estate (up 2.26%), Godrej Properties (up 1.83%), Sobha (up 1.76%) and Oberoi Realty (up 0.99%) climbed.
Stocks in Spotlight:
TCS slipped 1.52% after the IT company's net profit fell 2.57% to Rs 9,008 crore on 3.90% increase in net sales to Rs 45,411 crore in Q1 June 2021 over Q4 March 2021. On a year-on-year (Y-o-Y) basis, the IT major's net profit rose 28.54% and net sales rose 18.50% in Q1 June 2021 over Q1 June 2020. Constant currency revenue grew 16.4% Y-o-Y. Operating margin expanded 1.9% Y-o-Y to 25.5% in Q1 June 2021. The company's order book grew 17.3% to $8.1 billion in Q1 June 2021 over Q1 June 2020.
Profit before tax slipped 2.90% to Rs 12,163 crore in Q1 FY22 as against Rs 12,527 crore in Q4 FY21. Net cash from operations was at Rs 10,296 crore i.e. 114.3% of net income during the quarter. The company said all its business verticals showed good sequential as well as Y-o-Y growth. Growth during the quarter was led by cloud strategy and transformation, next-generation enterprise transformation and supply chain services, with demand led by manufacturing & utilities and life sciences among the industry verticals.
Growth continued to be led by life sciences and healthcare (+7.3% Q-o-Q, +25.4% Y-o-Y). Retail and consumer packaged goods (CPG) also bounced back to double digit growth, growing 4.4% Q-o-Q and 21.7% Y-o-Y. BFSI (+3.1% Q-o-Q, +19.3% Y-o-Y), manufacturing (+4.8% Q-o-Q, +18.3% Y-o-Y), technology & services (+5% Q-o-Q, +12.3% Y-o-Y) and communications & media (+1.7% Q-o-Q, +6.9% Y-o-Y) also saw significantly improved performance.
Central Depository Services (India) (CDSL) rose 2.42% after the depository said that it has become the first depository to open four crore plus active demat accounts. CDSL is currently the largest depository in the country in terms of active demat accounts.
JSW Steel gained 1.97%. The steel major announced that the group's combined crude steel production stood at 5.07 million tonnes registering a 65% year on year jump in Q1 FY22 from 3.07 million tonnes posted in Q1 FY21. On a sequential basis, the combined steel production grew 16% from 4.39 million tonnes reported in Q4 FY21. The capacity utilization at standalone level was at 91% in Q1 FY22 due to shortage of oxygen vis-vis 93% in Q4 FY21.
Indian Railway Catering and Tourism Corporation (IRCTC) rose 0.75% after the company informed that Ahmadabad Mumbai Tejas Express will resume its services from 7 August 2021. The train will run four days in the week viz, Friday, Saturday, Sunday and Monday, IRCTC said.
Meanwhile, Life Insurance Corporation of India (LIC) has raised its stake in the company to 1.90% as on 30 June 2021 from 1.12% as on 31 March 2021. Government of Singapore, however, pared its stake in the company to 1.55% as on 30 June 2021 as against 1.75% stake as on 31 March 2021.
Dwarikesh Sugar Industries advanced 7.39% after the company said that it has embarked upon a project to set up a 175 kilo litre per day (KLPD) distillery at its Dwarikesh Dham Unit, in Bareilly, Uttar Pradesh. Necessary LOIs for the critical equipment's are under issuance, the company said. The company's existing distillery capacity is 162.5 KLPD, with existing capacity utilization being approximately 90%. It proposes to add a capacity of 175 KLPD to its distillery unit.
Ashoka Buildcon spurted 3.57% after the company secured a Letter of Award (LoA) from IRCON International for a project worth Rs 482.34 crore in Dharam-Katra section, Jammu and Kashmir (J&K). The accepted contract value of the project is Rs 482.34 crore.
Tata Power rose 0.93%. The company has won a contract worth Rs 400 crore from the Kerala State Electricity Board (KSEBL) on 2 July 2021 to develop 64 MW solar rooftop project for domestic consumers across all districts of Kerala. As a part of this agreement, the company will implement projects through KSEBL of 80 MW for individual households with solar capacity ranging from 3kW -10kW) and for 20 MW of residential/housing society with projects (solar capacity ranging from 11kW -100kW).
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