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Sensex up 291 points, Nifty above 15,850; PI Inds rises 4%

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Capital Market
Last Updated : Aug 02 2021 | 10:51 AM IST
Equity indices trade sideways with decent gains in morning trade. The undertone of the market was bullish after GST collection for July crossed Rs 1 lakh crore mark. The Nifty hovered above the 15,850 level. Buying was seen acroos the board with realty, auto and FMCG stocks leading the way.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 291.29 points or 0.55% at 52,878.52. The Nifty 50 index was up 93.3 points or 0.59% at 15,856.05.

The broader market traded with strong gains. The S&P BSE Mid-Cap index was up 0.74% while the S&P BSE Small-Cap index gained 1.06%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2181 shares rose and 843 shares fell. A total of 146 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 198,283,776 with 4,224,015 global deaths.

India reported 413,718 active cases of COVID-19 infection and 424,773 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

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Economy:

The gross GST revenue collected in the month of July 2021 stood at Rs 1,16,393 crore of which CGST was Rs 22,197 crore, SGST was Rs 28,541 crore, IGST was Rs 57,864 crore (including Rs 27,900 crore collected on import of goods) and Cess was Rs 7,790 crore (including Rs 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.

With the easing out of COVID restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a fast pace.

Results Today:

HDFC (up 0.4%), Punjab National Bank (up 1.77%), Emami (up 2.05%), Balaji Amines (up 0.34%), Carborundum Universal (up 3.05%), Castrol India (up 0.47%), CG Power and Industrial Solutions (up 2.24%), Orient Cement (up 1.31%), RBL Bank (up 0.7%), Shree Renuka Sugars (down 0.44%) and Varun Beverages (up 0.72%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

PI Industries soared 4.07% to Rs 3,068.35 after the company's consolidated net profit rose 28.7% to Rs 187.20 crore on a 12.6% increase in net sales to Rs 1,193.80 crore in Q1 FY22 over Q1 FY21. Consolidated profit before tax rose 19.9% to Rs 227.70 crore in Q1 FY22 as against Rs 189.90 crore in Q1 FY21. Meanwhile, PI Industries has intimated regarding its execution of a business transfer agreement with Ind Swift Laboratories (ISLL) and certain identified promoters of ISLL for the acquisition (either itself or through its affiliate) of its API business division by way of a slump sale on a going concern basis. ISLL is engaged in the business of manufacturing Active Pharmaceutical Ingredients (API) and intermediates.

Britannia Industries rose 1.51% after the FMCG major posted a 7% rise in consolidated net profit to Rs 389.55 crore on a 10.3% rise in net sales to Rs 3,352 crore in Q1 FY22 over Q4 FY21. The FMCG company's consolidated sales & net profit declined 1% & 29% respectively versus last year on a higher base. Consolidated profit before tax rose 7.8% quarter on quarter while it tumbled nearly 28% year on year to Rs 531 crore in Q1 FY22. The FMCG major reported its quarterly result after market hours yesterday, 30 July 2021.

UPL fell 1.61%. The company posted a 23% rise in consolidated net profit to Rs 678 crore on a 9% rise in revenue to Rs 8,515 crore in Q1 FY22 over Q1 FY21. Consolidated profit before tax declined 25% to Rs 597 crore in Q1 FY22 from Rs 796 crore reported in Q1 FY21. The company reported a deferred tax credit of Rs 337 crore in Q1 FY22 which aided net profit. EBITDA grew by 9% to Rs 1,862 crore in Q1 FY22 from Rs 1,704 crore in Q1 FY21, supported by favorable product mix and realisations partly offset by cost pressures. EBITDA margin slightly improved to 21.9% in Q1 FY22 from 21.7% in Q1 FY21.

Bandhan Bank jumped 4.29%. The bank's standalone net profit dropped 32.1% to Rs 373.08 crore on a 15.8% rise in total income to Rs 3,943.37 crore in Q1 FY22 over Q1 FY21. Standalone profit before tax skid 32.5% to Rs 496.21 crore in Q1 FY22 as against Rs 735.12 crore in Q1 FY21. The bank's gross non-performing assets (NPAs) grew 539.77% to Rs 6,440.38 crore as on 30 June 2021 as against Rs 1,006.66 crore as on 30 June 2020. The ratio of gross NPAs to gross advances stood at 8.18% as on 30 June 2021 as against 1.43% as on 30 June 2020. The ratio of net NPAs to net advances stood at 3.29% as on 30 June 2021 as against 0.48% as on 30 June 2020. Provision and Contingencies expanded 61.92% to Rs 1,374.87 crore in Q1 FY22 over Rs 849.06 crore in Q1 FY21. Net Interest Income (NII) for the quarter jumped 16.7% to Rs 2,114.10 crore as against Rs 1,811.50 crore in the corresponding quarter of the previous year.

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First Published: Aug 02 2021 | 10:28 AM IST

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