Key equity benchmarks ended with robust gains on Tuesday, supported by steep slide in crude oil prices and positive global shares. Market sentiment also got a boost from sudden jump in manufacturing PMI. The IHS Markit India Manufacturing Purchasing Managers' Index (PMI) jumped from 52.7 in December to 55.3 in January, its highest level in just under eight years.
The barometer BSE S&P Sensex rallied 917.07 points or 2.30% to 40,789.38, its highest closing level since 30 January 2020.
The Nifty 50 index climbed 271.75 points or 2.32% to 11,979.65, its highest closing level since 30 January 2020.
In the wider market, the BSE Mid-Cap index rose 1.37% and the BSE Small-Cap index rose 1.29%. Both these indices underperformed the Sensex.
The market breadth was strong. On the BSE, 1618 shares rose and 885 shares fell. A total of 181 shares were unchanged.
The Sensex crashed 2.43% and the Nifty plummeted 2.51% in a special trading session on Saturday (1 February), after disappointing Union Budget 2020-21. The Budget missed sector-specific measures, and the new personal tax regime was termed as complex. The long-term capital gains tax (LTCG) was left unchanged, while tax on dividend was shifted to individuals instead of companies.
More From This Section
However, declining crude oil prices and strong manufacturing PMI data helped the Indian market recover its losses. The Sensex regained 1053.85 points, or 2.65% and the Nifty bounced 317.80 points, or 2.73% in the past two sessions.
Economy:
Fitch Ratings on Monday said India is expected to clock a GDP growth of 5.6% in the next financial year, as Budget 2020 has not "materially altered" its view on the country's growth outlook.
The Economic Survey of India released by the government last week projected India's growth rate at 6-6.5% for FY21.
Numbers to Watch:
The yield on 10-year benchmark federal paper was almost flat at 6.504% at 16:50 IST compared with 6.503% 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 71.275, compared with its close of 71.38 during the previous trading session.
Crude oil fell to its lowest level in more than a year on concerns of the coronavirus outbreak and its potential impact on demand. China is world's largest crude importer. The media reported that OPEC members are planning an emergency meeting for discussing large production cut.
In the commodities market, Brent crude for April 2020 settlement was up 28 cents at $54.73 a barrel. The contract tumbled $2.17 a barrel, or 3.83% to settle at $54.45 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia edged higher on Tuesday amid China's efforts to contain coronavirus.
The US Dow index futures was up 301 points on Tuesday, signaling a continuation of the enormous relief rally that began at the start of the week.
The People's Bank of China (PBOC) launched a 1.2 trillion yuan ($173 bln) reverse repurchase operation on Monday to maintain "reasonable and abundant liquidity" in the banking system, as well as a stable currency market, during the epidemic.
The US stock market bounced back on Monday, clawing back some losses from Friday's brutal selloff, even as investors kept an eye on battered Chinese equity exchanges.
Also helping drive gains in US stocks were data on the manufacturing sector from the Institute for Supply Management, whose purchasing manager's index rose to a six-month high of 50.9% in January. A reading above 50% indicates expansion, while below 50% indicates contraction.
Buzzing Indian Index:
The Nifty Metal index rose 3.32% to 2,594.25, outperforming other sectoral indices on the NSE.
NMDC (up 5.19%), JSPL (up 4.89%), Hindustan Copper (up 4.86%), Hindalco Industries (up 4.18%), SAIL (up 3.79%), Tata Steel (up 3.55%), Vedanta (up 3.28%), JSW Steel (up 2.44%), NALCO (up 1.92%) and Hindustan Zinc (up 1.72%) advanced.
Stocks in Spotlight:
Bharti Airtel (up 1.72%) will announce Q3 2019 earnings today.
Adani Ports And Special Economic Zone (APSEZ) rose 1.28% to Rs 372.60. On a consolidated basis, APSEZ's net profit declined 4.4% to Rs 1356.43 crore while total income rose 20.88% to Rs 3830.43 crore in Q3 2019 over Q3 2018. The earnings were declared during market hours today, 4 February 2020.
Profit before tax (PBT) for Q3 December 2019 stood at Rs 1739.03 crore, down by 4.5% from Rs 1820.91 crore reported in Q3 December 2018. Current tax expense rose 41.14% to Rs 270.36 crore in Q3 2019 as against Rs 191.56 crore reported in Q3 2018.
Titan Company jumped 7.55%. On a consolidated basis, Titan's net profit rose 15.35% to Rs 474.2 crore in Q3 December 2019 as against Rs 411.09 crore reported in Q3 December 2018. Consolidated Revenue from Operations stood at Rs 6454.58 crore in Q3 2019, rising 10.53% YoY from Rs 5839.82 crore reported in Q3 2018. Profit before tax (PBT) for Q3 December 2019 stood at Rs 648.24 crore, up by 8.11% from Rs 599.62 crore reported in Q3 December 2018. The company reported that the Jewellery business grew at 10.6% in Q3 to Rs 5409 crore in Q3 2019 as compared to Rs 4890 crores in Q3 2018. The income from watches was Rs.625 crores in Q3, registering a marginal decline over last year on account of a poor December month for sales. The eyewear business grew by 2.9% to Rs 133 crore in Q3 2019 over Q3 2018.
Reliance Industries (RIL) gained 2.89%. RIL informed that new production from KG D6 project is on track to start by mid-2020. The RIL-BP joint venture has completed the safe cessation of production in a planned manner, from the D1 D3 field in Block KG D6 (KG-DWN-98/3), off the east coast of India. The first-gas from these fields is expected in mid-2020. The peak production from these three fields is expected to reach 1 billions of cubic feet equivalent per day which is about 15% of the then envisaged India's demand.
Larsen & Toubro (L&T) advanced 0.38%. L&T on Tuesday said its construction arm has bagged a large contract from Etihad Rail Company PJSC to design and build freight handling facilities at seven strategic locations across the United Arab Emirates (UAE). As per the L&T's classification, the valuation of the 'large' order stands between Rs 2500 crore and 5000 crore.
Bajaj Auto slipped 3.86% after total domestic auto sales fell 3.11% to 3.94 lakh units in January 2020 as against 4.07 lakh units sold in January 2019.
TCS rose 0.22%. The IT major said it has won a $1.5 billion deal across a ten-year period from US pharma retailer Walgreens Boots Alliance (WBA) to transform its technology operations.
Honeywell Automation jumped 17.89%. The company's net profit surged 69% to Rs 144.74 crore in Q3 December 2019 as against net profit of Rs 85.62 crore in Q3 December 2018. Net sales jumped 11% to Rs 901.20 crore in Q3 December 2019 over Q3 December 2018. Profit before tax soared 47.3% to Rs 194.44 crore in Q3 December 2019 as compared to Rs 131.96 crore posted in Q3 December 2018.
Punjab National Bank fell 1.05%. PNB reported a net loss of Rs 492.28 crore in Q3 December 2019 compared with a net profit of Rs 246.51 crore in Q3 December 2018. Total income rose 7.5% to Rs 15,967.49 crore in Q3 December 2019 from Rs 14,854.24 crore in Q3 December 2018. The result was announced during trading hours today (4 February).
Provisions and contingencies (excluding tax provisions) jumped 50.55% to Rs 4,146.04 crore in Q3 December 2019 over Q3 December 2018. The ratio of gross NPAs to gross advances stood at 16.3% as on 31 December 2019 as against 16.76% as on 30 September 2019 and 16.33% as on 31 December 2018. The ratio of net NPAs to net advances stood at 7.18% as on 31 December 2019 as against 7.65% as on 30 September 2019 and 8.22% as on 31 December 2018.
Glaxosmithkline Pharmaceuticals crashed 12.15%. The pharma company reported a net loss of Rs 661.16 crore against a net profit of Rs 113.67 crore on 8.69% fall in total income to Rs 795.09 crore in Q3 December 2019 over Q3 December 2018. The results were impacted due to voluntary global recall of ranitidine products including Zinetac in India and trigger-based impairment charges primarily towards the firm's manufacturing facility at Vemgal, Karnataka.
Shriram Transport Finance Company surged 6.15% after the company reported 38.2% jump in consolidated net profit to Rs 882.19 crore in Q3 December 2019 as compared to Rs 638.56 crore reported in Q3 December 2018. PBT or profit before tax surged 20.6% to Rs 1186.32 crore in Q3 December 2019 from Rs 983.94 crore in Q3 December 2018. Total Income in the December quarter stood at Rs 4288.20 crore, up by 7.4% from Rs 3993.40 crore reported in the same period last year.
Sun Pharmaceutical Industries advanced 1.94% on bargain hunting after a recent slide. The stock crashed 7.76% in five sessions to end at Rs 417.50 on Monday (3 February) from a recent closing high of Rs 452.65 recorded on 28 January 2020.
Meanwhile, Sun Pharma's subsidiary, Taro Pharmaceutical Industries (Taro), announced its earnings for the quarter ended on 31 December 2019 on Monday, 3 February 2020. Taro's net sales declined 16.27% to $147,683 thousand in the December quarter as compared to $176,381 thousand reported last year, primarily the result of competition. Research and development (R&D) expenses rose by 1.83% to $14,996 thousand in December quarter from 14,726 reported in the same period last year. Net income attributable to Taro stood at $67,682 thousand in the December quarter, down by 27.62% from $93,506 recorded in the corresponding period last year. As per Sun Pharma's Annual Report 2018-19, the company holds 76.54% stake in Taro Pharmaceutical Industries.
Powered by Capital Market - Live News