The Nifty opened higher at 9364.95, tracking positive news from global market. The index raced higher to cross the 9400 mark in morning trade. It extended gains and crossed 9450 level in mid-morning session. The index failed to cross the 9500 mark due to stiff resistance. After hovering sideways in afternoon session, it briefly crossed the 9500 mark in late trade.
Buying was broad based. The S&P BSE Mid-Cap index surged 1.23% while the S&P BSE Small-Cap index rallied 1.38%.
There were more buyer than sellers. On the BSE, 1527 shares rose and 814 shares fell. A total of 160 shares were unchanged. In Nifty 50 index, 43 stocks advanced while 7 stocks declined.
The media reported that India's GST Council is likely to meet in the second week of June to discuss the impact of the coronavirus pandemic on the economy of states, among other things.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 56,97,334 far with 3,55,758 deaths. India reported 86,110 active cases of COVID-19 infection and 4,531 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
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The Nifty Auto index gained 3.51% to 6,103.90, extending gains for seventh day. The index has added 12.4% in seven trading sessions from its previous closing low of 5430.05 posted on 18 May 2020.
Hero MotoCorp (up 6.28%), Maruti Suzuki India (up 4.23%), Ashok Leyland (up 2.78%), Escorts (up 2.51%), Mahindra & Mahindra (up 1.83%), Bajaj Auto (up 0.84%) and Tata Motors (up 0.53%) were top gainers in auto segment.
Eicher Motors soared 8.47% to Rs 16,237.05, extending its winning run to third consecutive trading session amid stock-split plan. The company said its board will consider sub-division of the equity shares of face value of Rs 10 each on 12 June 2020. The company will also consider Q4 March 2020 results on the same day.
TVS Motor Company (up 2.4%) will announce their quarterly results today.
Q4 Results Today:
Lupin (down 1.6%), TVS Motor Company (up 2.82%), CEAT (up 1.32%), IIFL Finance (up 0.08%), Heidelberg Cement India (down 0.03%) and LT Foods (up 7.4%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
United Spirits fell 1.90% to Rs 566.85 after the company reported 52.5% decline in consolidated net profit to Rs 58.40 crore on 14.1% fall in net sales to Rs 1990.50 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) stood at Rs 183.50 crore in Q4 FY20, up by 5.6% from Rs 173.70 crore in Q4 FY19. Revenue declined primarily due to COVID-19 led disruption in India in March, which exacerbated the impact of the ongoing consumption slowdown. Employee expense declined 36.91% to Rs 109.40 crore during the quarter. On the volume front, the alcoholic beverages manufacturer's prestige & above segment witnessed 19.6% fall in volumes as it stood at 8.4 EUm while the popular segment's volumes contracted by 7.5% to 9.9 EUm in Q4 FY20 over Q4 FY19.
Quess Corp fell 1.63% after the company reported a consolidated net loss of Rs 629.92 crore in Q4 March 2020 compared with net profit of Rs 75.50 crore in Q4 March 2019. Consolidated net sales jumped 30.5% to Rs 2,994.59 crore in Q4 March 2020 over Rs 2,294.77 crore in Q4 March 2019. Pre-tax loss stood at Rs 594.36 crore in Q4 March 2020 as compared to a pre-tax profit of Rs 87.59 crore in Q4 March 2019. The company incurred one off non-cash charge of Rs 664 crore on account of goodwill impairment and change in tax regime. Consolidated EBITDA grew 28% to Rs 169 crore in Q4 FY20 over Q4 FY19 due to Covid-19 impact. EBITDA margin stood at 5.63% in Q4 FY20 as against 5.74% in Q4 FY19.
Aditya Birla Fashion and Retail soared 8.47%. The company reported a consolidated net loss of Rs 146.59 crore in Q4 March 2020 as against a net profit of Rs 202.64 crore posted in Q4 March 2019. Earnings were impacted by the COVID-19 pandemic early March leading to movement restrictions and heightened sense of insecurity among people. Aditya Birla Fashion reported sales Loss due to COVID impact at Rs 339 crore leading to a gross margin loss of Rs 200 crore in Q4 March 2020. Lifestyle brands reported a 5% drop in sales in Q4 March 2020 to Rs 1072 crore from Rs 1132 crore posted in the same period last year. The segment witnessed a decline in EBITDA owing to the drop in sales in the month of March due to COVID related disruptions. Fast Fashion segment continued with its focus around improving operating performance
Tata Investment Corporation was up 1.13%. The holding company reported consolidated net loss of Rs 36.75 crore in Q4 March 2020, higher than net loss of Rs 6.02 crore in Q4 March 2019. Total income dropped 17.2% to Rs 21.41 crore in Q4 March 2020 over Rs 25.87 crore in Q4 March 2019. Pre-tax loss stood at Rs 36.62 crore in Q4 March 2020 as against pre-tax loss of Rs 4.42 crore in Q4 March 2019. Current tax expenses jumped 55.7% to Rs 2.71 crore in Q4 March 2020 as against Rs 1.74 crore in Q4 March 2019. The result was announced after market hours yesterday, 27 May 2020.
Stocks in Spotlight:
Vedanta rose 2.45%. India Ratings and Research downgraded rating of the company to IND AA- from previous rating of IND AA with a negative outlook.
Granules India fell 1.18%. The pharmaceutical company said that the US drug regulator did not detect cancer-causing N-Nitrosodimethylamine (NDMA) in the company's API and finished dosage tablets.
Global Markets:
European markets were trading higher as European Union (EU) planned to open up tourist destinations for the summer despite fears of the ongoing COVID-19 pandemic. Tourism represents 10% of the European economy and creates 27 million jobs directly and indirectly across the region. Investor sentiment was also improved after the European Commission (EC) unveiled plans for a 750 billion euro ($826.5 billion) recovery fund.
Asian markets ended on a mixed note as US-China tension woes competed with the hopes of an economic recovery from the coronavirus crisis.
Hong Kong's Hang Seng index closed 0.72% lower after China's National People's Congress on Thursday voted on a decision that paves the way for sweeping anti-sedition laws to be directly enacted in Hong Kong. China's legislature approved a decision to force a controversial national security law on Hong Kong, in an extraordinary and unprecedented move aimed at bringing the semi-autonomous territory further under Beijing's control.
Meanwhile, Japanese Prime Minister Shinzo Abe's cabinet approved a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world's third-largest economy deeper into recession.
The US equity market finished sharply higher on Wednesday, 27 May 2020, extending the market's gains into a third day, on optimism that economic activity is gathering steam and authorities may offer more stimulus to bolster the recovery. Hopes for potential COVID-19 vaccines under development have also helped propel stocks.
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