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Shares turn green; PSU banks advance

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Last Updated : Jun 18 2020 | 11:04 AM IST

The domestic benchmark bounced back in positive terrain in morning trade. At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 102.43 points or 0.31% at 33,610.35. The Nifty 50 index added 37 points or 0.37% at 9,918.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.71% while the S&P BSE Small-Cap index gained 0.83%.

The market breadth was strong. On the BSE, 1438 shares rose and 602 shares fell. A total of 99 shares were unchanged.

Covid-19 Update:

India reported 1,60,384 active cases of COVID-19 infection and 12,237 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 83,49,950 far with 4,48,959 deaths, according to data from Johns Hopkins University.

Economy:

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Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the rating at 'BBB-'.

The coronavirus pandemic has significantly weakened India's growth outlook for this year and exposed the challenges associated with a high public-debt burden. Fitch expects economic activity to contract by 5% in the fiscal year ending March 2021 (FY21) from the strict lockdown measures imposed since 25 March 2020, before rebounding by 9.5% in FY22.

Buzzing Index:

The Nifty PSU Bank index rose 1.28% to 1,370.30 amid value buying. The index fell 1.35% in the past two sessions.

Indian Bank (up 3.31%), Bank of India (up 2.84%), Punjab & Sind Bank (up 2.22%), Canara Bank (up 1.89%), United Bank of India (up 1.56%), Punjab National Bank (up 1.21%), Bank of Baroda (up 1.11%), Union Bank of India (up 1.03%), State Bank of India (up 0.75%), Central Bank of India (up 0.37%), UCO Bank (up 0.23%), Allahabad Bank (up 0.13%) and Bank of Maharashtra (up 0.09%) advanced.

Q4 Results Today:

Bajaj Consumer Care (up 0.37%), IRB Infrastructure Developers (up 1.65%), City Union Bank (up 1.58%), Suven Pharmaceuticals (up 3.19%), Thermax (up 1.06%), Amrutanjan Healthcare (up 1.65%), Brigade Enterprises (up 0.99%), Caplin Point Laboratories (up 4.21%), CARE Ratings (down 1.44%), Gujarat State Fertilizers & Chemicals (up 2.28%), Gujarat Alkalies (up 0.82%), Hikal (down 1.04%), MOIL (down 1.46%), Thomas Cook (India) (up 0.90%), VST Tillers Tractors (up 0.51%) and Whirlpool of India (up 0.61%) are some of the companies that will announce their quarterly earnings today.

Earnings impact:

Fortis Healthcare fell 1.06% to Rs 121.50 after the company reported a consolidated net loss of Rs 44.51 crore in Q4 FY20 as compared to a net profit of Rs 135.60 crore in Q4 FY19. Net sales in the March quarter contracted by 6% year-on-year (YoY) to Rs 1112.92 crore. Hospital business revenues remained flat at Rs 913.30 crore while the diagnostic business gross revenues declined 7.6% YoY to Rs 231.9 crore.

Fortis Healthcare said that the company continues to face challenges in the current quarter, impacting its financial performance. While revenues saw a sharp reduction in April 2020, beginning May business is exhibiting signs of an early and gradual recovery. It added that the impact of the pandemic is however expected to continue through the April-June quarter and beyond till visible and sustainable signs of stabilization and normalization can be seen.

Triveni Engineering & Industries hit an upper circuit of 5% at Rs 53.90, extending gains for second day. The stock has added 10.11% in two sessions.

The sugar manufacturer's consolidated net profit surged 72.6% to Rs 137.59 crore on 74.9% jump in revenue from operations to Rs 1494.02 crore in Q4 FY20 over Q4 FY19. Income from the sugar business rose 91.6% year-on-year to Rs 1,553.11 while the earnings of the engineering business remained flat Rs 130.28 crore in the fourth quarter.

"In view of the seasonality of the sugar business, the performance results may vary from quarter to quarter," the company said. Total tax expenses in the March quarter rose sharply to Rs 26.65 crore from Rs 9.53 crore recorded in the same period last year.

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First Published: Jun 18 2020 | 10:27 AM IST

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