The domestic equity barometers ended with strong gains on Tuesday, supported by firmness in autos and private banks. The barometer index, the S&P BSE Sensex, advanced 612.60 points or 1.24% to 50,193.33. The Nifty 50 index added 184.95 points or 1.24% to 15,108.10.
Bajaj Finance (up 4.84%), HDFC Bank (up 2.57%), ICICI Bank (up 1.52%) and Reliance Industries (up 1.39%) boosted the indices higher.
Investors' sentiment improved as COVID-19 recoveries in India outnumbered fresh cases, helped by the extended lockdowns by majority states. Better-then-expected corporate earnings and positive global cues also supported buying in domestic shares.
In the broader market, the BSE Mid-Cap index rose 1.87% and the BSE Small-Cap index gained 1.28%.
The market breadth was strong. On the BSE, 1946 shares rose and 1144 shares fell. A total of 164 shares were unchanged.
The Sensex has risen 3.09% in three consecutive sessions while the Nifty has climbed 2.93% in two straight sessions.
More From This Section
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 16,36,42,990 with 33,90,316 deaths. India's COVID-19 toll climbed to 2,78,719 with a record 4,329 fresh fatalities, while the single-day rise in coronavirus cases stood at 2.63 lakh, the lowest in 28 days, according to the Union Health Ministry data updated on Tuesday. The single-day rise in coronavirus cases cases have come below the 3-lakh mark for India for the second consecutive day.
Meanwhile, the government has dropped plasma therapy from COVID-19 treatment protocol. Covid National Task Force released new clinical guidelines for management of mild, moderate and severe COVID-19 cases. Plasma therapy does not find a mention under the new guidelines. The decision came on the basis of recommendations of experts from AIIMS, ICMR-COVID-19 National Task Force, and Joint Monitoring Group of Union Health Ministry.
The plasma therapy, which includes transfusion of COVID-19 antibodies from the blood of a recovered patient to the one being treated, has not been found effective in reducing the progression to severe disease nor has a decrease in the fatality rate been observed.
The World Health Organization on Monday, 17 May 2021, warned that the global pandemic isn't over yet despite high COVID-19 vaccination rates in some countries. In Asia, places such as Singapore and Taiwan have seen a recent resurgence in local infections, prompting authorities to tighten restrictions in a bid to stem the virus' spread.
Economy:
The Reserve Bank of India (RBI) in its latest bulletin said that the biggest economic impact during the second wave has been on the demand outlook. RBI said demand has seen a sharp fall during the April-May period, but added that the situation is better than the first wave in 2020.
According to the central bank, loss of mobility, lower discretionary spending, lack of employment and inventory accumulation are some of the factors that indicate weaker demand during the second wave in India. While RBI said that the resurgence of Covid-19 has dented economic activity in the first half of Q1:2021-22, it has not yet "debilitated" it.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 5.978% as compared with 5.972% 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 73.05, compared with its close of 73.22 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement fell 0.25% to Rs 48,355.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.35% to 89.85.
In the commodities market, Brent crude for July 2021 settlement rose 55 cents at $70.01 a barrel. The contract rose 75 cents, or 1.09% to settle at $69.46 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia rose across the board on Tuesday as global markets look to break out from the gloomy sentiment seen at the start of the trading week.s
Japan's economy shrank at an annualized rate of 5.1% in January to March, government data showed Tuesday. On a seasonally adjusted basis, gross domestic product in January-March fell 1.3% quarter-on-quarter. That came as resurgent COVID-19 infections in the country snapped two quarters of consecutive growth.
Wall Street stocks ended lower on Monday, weighed down by tech shares as signs of growing inflation worried investors about the potential for tighter monetary policy.
Buzzing Indian Segment:
The Nifty Auto index rose 3.22% to 10,324. The index has risen 5.23% in two sessions.
Ashok Leyland (up 6.67%), Mahindra & Mahindra (up 5.77%), Bajaj Auto (up 5.19%), TVS Motor Company (up 3.48%), Eicher Motors (up 3.35%), HeroMoto Corp (up 2.04%) and Maruti Suzuki India (up 1.4%) advanced.
Auto major Tata Motors rose 3.39% ahead of its Q4 results today.
Earnings Impact:
Abbott India fell 1.13%. The drug maker posted a 37.4% rise in net profit to Rs 152.47 crore in Q4 FY21 as against Rs 110.97 crore in Q4 FY20. Revenue from operations increased 14% to Rs 1,095.54 crore in Q4 FY21 compared with Rs 961.20 crore in Q4 FY20. The result was announced during market hours today, 18 May 2021. The profit before tax surged 35.5% to Rs 201.88 crore in Q4 FY21 from Rs 148.93 crore in Q4 FY20.
Sun Pharma Advanced Research Company (SPARC) declined 2.09%. SPARC reported a net loss of Rs 56.72 crore in Q4 FY21, lower than net loss of Rs 99.54 crore in Q4 FY20. Net sales jumped 23.6% to Rs 28.06 crore in Q4 FY21 over Q4 FY20.
Mangalore Refinery & Petrochemicals (MRPL) surged 8.74% after the company posted a net profit of Rs 328.30 crore in Q4 FY21 compared with net loss of Rs 1,629.14 crore in Q4 FY20. Net sales declined 3.94% year-on-year to Rs 13,575.94 crore in Q4 FY21 as against Rs 14,132.28 crore in Q4 FY20. The company reported pre-tax profit of Rs 519 crore in Q4 FY21 as against a pre-tax loss of Rs 2,276 crore in Q4 FY20. EBITDA stood at Rs 874 crore in Q4 FY21 as against EBITDA loss of Rs 1,891 crore in Q4 FY20.
Orient Cement added 3.45% after the company's net profit increased 126.6% to Rs 99.88 crore in Q4 FY21 compared with Rs 44.07 crore in Q4 FY20. Net sales during the quarter increased 27.1% to Rs 831.62 crore in the fourth quarter compared with the same period last year.
Kalyani Steels jumped 5.50%. The company's consolidated net profit surged to Rs 75.68 crore in Q4 FY21 from Rs 22.66 crore in Q4 FY20. Revenue from operations increased by 39.3% year-on-year (YoY) to Rs 377.23 crore during the quarter.
Jyothy Labs rose 1.07% after the company's consolidated net profit rose 2.59% to Rs 27.28 crore on 25.98% surge in revenue from operations to Rs 495.11 crore in Q4 March 2021 over Q4 March 2020. The profit after tax includes an exceptional item pertaining to excise duty receivable for previous years worth Rs 23.50 crore written off pursuant to change in the government policy.
EBITDA jumped 74.8% to Rs 70.90 crore in Q4 March 2021 over Q4 March 2020. EBITDA margin improved to 14.3% during the quarter from 10.3% in Q4 March 2020. FMCG sales grew by 27.3% during the period under review.
Wabco India surged 6.02%. The automotive parts manufacturer's standalone net profit rose 51.2% to Rs 47.63 crore on 75.9% surge in net sales to Rs 712.32 crore in Q4 March 2021 over Q4 March 2020.
Canara Bank tumbled 4.52%. The public sector bank's net profit stood at Rs 1010.87 crore in Q4 FY21 compared with net loss of Rs 3,259.33 crore in Q4 FY20. Total income increased 51.33% to Rs 21,522.60 crore in Q4 FY21 over Q4 FY20.
The bank's total provisions for Q4 FY21 stood at Rs 4,134.15 crore, declining 23% from Rs 5,375.38 crore in Q4 FY20. On the asset quality side, the gross NPA ratio stood at 8.94% as on 31 March 2021, compared to 7.48% on 31 December 2020 and 8.24% as of 31 March 2020. The net NPA ratio stood at 3.82% as on 31 March 2021 from 2.65% as on 31 December 2020 and 4.23% as on 31 March 2020.
Stocks in Spotlight:
HCL Technologies gained 1.05%. The company announced the expansion of investment in the United Kingdom with the hiring of 1,000 technology professionals to support its clients in the UK and around the world. The company plans to hire these professionals in the fields of digital transformation, cloud, artificial intelligence and cybersecurity for its London, Greater London and Manchester offices.
Zuari Agro Chemicals shed 0.10%. The company said that the fertilizer plant of the company situated at Zuarinagar, Goa was impacted on May 16, 2021 by Cyclone-Tauktae and there could be some damages caused to the fertilizer plant at Goa. Consequently, there could be a potential delay in the restart of ammonia and urea plants, the company said.
Powered by Capital Market - Live News