Barometers slip into the red; breadth turns weak

The key barometers reversed gains and entered the negative terrain in afternoon trade. The Nifty held the 16,200 mark. European shares opened in red.

At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 21.35 points or 0.04% at 54,256.37. The Nifty 50 index skid 17.60 points or 0.11% at 16,220.60.

Reliance Industries (RIL) (down 0.81%), Housing Development Finance Corporation (HDFC) (down 0.76%) and Bharti Airtel (down 1.02%) were major drags.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index shed 1.09%. The S&P BSE Small-Cap index lost 0.85%.

Sellers outnumbered buyers. On the BSE, 1,244 shares rose and 2,011 shares fell. A total of 136 shares were unchanged.

 

Foreign portfolio investors (FPIs) sold shares worth Rs 69.37 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 631 crore in the Indian equity market on 6 August 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 20,27,31,589 with 42,94,400 deaths. India reported 4,02,188 active cases of COVID-19 infection and 4,28,309 deaths while 3,11,39,457 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India has reported 35,499 new cases and 447 deaths in the last 24 hours, as per a government health bulletin. Active caseload in the country currently stands at 4,02,188. A recovery rate of 97.40% was recorded.

Meanwhile, Johnson and Johnson's single-dose COVID-19 vaccine has been given approval for emergency use in India. Now India has five Emergency Use Authorization vaccines.

Mumbai Suburban local train services will be available for common man from 15th August. Maharashtra Chief Minister Uddhav Thackeray announced that those people who have completed 14 days after taking 2nd dose of COVID-19 vaccine will be allowed to commute via local trains.

Economy:

Prime Minister Narendra Modi will release the next instalment of financial benefit under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme on 9 August 2021 at 12:30 PM via video conferencing.

This will enable the transfer of an amount of more than Rs 19,500 crore to more than 9.75 crore beneficiary farmer families Under the PM-KISAN scheme, a financial benefit of Rs 6,000 per year is provided to the eligible beneficiary farmer families, payable in three equal 4-monthly installments of Rs 2,000 each. The fund is transferred directly to the bank accounts of the beneficiaries.

In this scheme, Samman Rashi of over Rs 1.38 lakh crore has been transferred to farmer families so far. Union Agriculture Minister will also be present on the occasion.

Gainers & Losers:

Mahindra & Mahindra (M&M) (up 2.83%), Bajaj Finserv (up 1.53%), Axis Bank (up 1.48%), IndusInd Bank (up 1.45%) and Tech Mahindra (up 1.30%) were major gainers in Nifty 50 index.

Tata Consumer Products (TCPL) (down 1.47%), Hindalco Industries (down 1.42%), Coal India (down 1.27%), Bharti Airtel (down 1.02%) and Indian Oil Corporation (IOCL) (down 0.92%) were major losers in Nifty 50 index.

Nifty Result Today:

Shree Cement (up 0.40%) will announce its quarterly result today.

Earnings Impact:

Affle (India) gained 0.53%. The company posted a 90.4% jump in consolidated net profit to Rs 35.73 crore on 70% rise in net sales to Rs 152.47 crore in Q1 FY22 over Q1 FY21. On a sequential basis, the company posted 39% fall in net profit on a 7.7% rise in net sales in Q1 FY22 over Q4 FY21. Consolidated profit before tax declined 35.6% quarter on quarter but soared 104% year on year to Rs 41.16 crore in Q1 FY22.

EBITDA stood at Rs 35.1 crore in Q1 FY22, an increase of 56% year-on-year. Affle's CPCU business noted strong momentum delivering 3.1 crore of converted users in Q1 FY22, an increase of 85% year on year. The company reported robust operating cash flows of Rs 39.6 crore during the quarter, achieving 134.2% of PAT as operating cash flows.

National Aluminium Company (NALCO) tumbled 10.62%. The state-run aluminium manufacturer's consolidated net profit soared 1982% to Rs 347.48 crore on 79.2% jump in net sales to Rs 2,474.55 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21). Increase in revenues was mainly propelled by strong demand, higher volumes, better realization and effective capacity utilization of its operational units. Consolidated profit before tax soared 1765.60% to Rs 461.36 crore in Q1 FY22, steeply higher than Rs 24.73 crore in Q1 FY21.

Bank of Baroda slipped 1.98%. The state-run bank posted a standalone net profit of Rs 1,208 crore in Q1 FY22 compared with net loss of Rs 864.26 crore in Q1 FY21. Total income fell 1.4% to Rs 20,022 crore in Q1 FY22 as compared to Rs 20,312 crore in Q1 FY21. The bank reported a profit before tax of Rs 1,595 crore in Q1 FY22 as against a pre-tax loss of Rs 1,307 crore in Q1 FY21.

The PSU bank's operating profit before provisions and contingencies rose 41.2% to Rs 5707.41 crore in Q1 FY22 from Rs 4041.67 crore in Q1 FY21. The bank's net interest income grew 15.8% year on year to Rs 7,892 crore in Q1 FY22. Global Net interest margin (NIM) stood at 3.04% while domestic NIM came at 3.12% in Q1 FY22.

Global Markets:

European shares opened lower while most Asian stocks were trading higher on Monday (9 August). Markets in Japan and Singapore were closed for public holidays.

Investors are awaiting key U.S. inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

China's export growth unexpectedly slowed in July while imports also lost momentum. Exports rose 19.3% from a year ago, compared with a 32.2% gain in June and imports rose 28.1% from a year earlier.

In US, the Dow and the S&P 500 indexes closed at record highs on Friday following a stronger-than-expected jobs report, while investors shrugged off concerns over the Delta variant impacting a nascent economic recovery.

Hiring surged in July as American employers added 943,000 jobs. The unemployment rate dropped to 5.4% another sign that the U.S. economy continues to bounce back with surprising vigor from last year's coronavirus shutdown.

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