Worries about rising coronavirus cases overshadowed the economic relief measures announced by the Indian government. The government unveiled a series of economic measures as part of a Rs 20 lakh crore special monetary package. The measures, which included loan guarantees for small businesses and free food grains for workers, have fallen short of market expectations.
In the broader market, the S&P BSE Mid-Cap index was off 0.09% while the S&P BSE Small-Cap index shed 0.29%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 916 shares rose and 1147 shares fell. A total of 154 shares were unchanged. In the Nifty 50 index 22 shares advanced while 28 shares declined.
Gainers & Losers:
Bharat Petroleum Corporation (up 3.81%), Tata Steel (up 2.31%), Bharti Airtel (up 2.2%), Hindalco Industries (up 2.18%) and NTPC (up 1.85%) were top gainers in Nifty 50 index.
Mahindra & Mahindra (down 4.4%), Axis Bank (down 2.69%), Shree Cements (down 2.13%), UPL (down 2.05%) and ICICI Bank (down 1.85%) were top losers in Nifty 50 index.
Q4 Results Today:
Cipla (up 0.25%), IIFL Securities (up 2.75%), Crompton Greaves Consumer (up 0.62%), L&T Finance Holdings (down 1.89%), L&T Techonology Services (down 4.03%), Nippon Life India (down 0.45%), Mahindra & Mahindra Finance (up 0.3%) and Tasty Bite Eatables (down 1.6%) are some of the companies that will announce their quarterly results today.
Earnings Impact:
Biocon fell 1.15% after consolidated net profit declined 42.3% to Rs 123.40 crore on a 3.4% rise in net sales to Rs 1581 crore in Q4 March 2020 over Q4 March 2019. The small molecules business reported a revenue growth of 15% to Rs 541 crore in Q4 March 2020 led by steady API sales and strong growth in Generic Formulations. The Biologics segment reported a decline of 21% to Rs 357 crore in Q4 March 2020 after reporting three consecutive quarters of robust performance.
Biocon's Branded Formulations business continued to face challenges. For Q4 March 2020, business revenue stood at Rs 117 crore posting a decline of 12% over Q4 March 2019. The company's consolidated EBITDA stood at Rs 382 crore in Q4 March 2020, declining 11% from Rs 431 crore in the same period last year. EBITDA margin slipped to 23% in Q4 March 2020 from 28% reported in Q4 March 2019.Research & development expenses jumped 36% to Rs 125 crore in Q4 March 2020 over Q4 March 2019.
Manappuram Finance rose 2.85% after net profit rose 43.68% to Rs 394.97 crore on 38.72% increase in total income to Rs 1,618.15 crore in Q4 March 2020 over Q4 March 2019. Profit before tax stood at Rs 534.07 crore in Q4 March 2020, up by 30.4% from Rs 409.41 crore in Q4 March 2019. Net interest income rose 33.3% to 1024.52 crore during the period under review. The company's consolidated assets under management (AUM) rose 29.8% to Rs 25,225 crore in FY20 from Rs 19,438 crore in FY19.
Tata Consumer Products fell 2.08% after consolidated group net loss stood at Rs 122 crore in Q4 March 2020 as compared to a net profit of Rs 36 crore in Q4 March 2019. The company reported exceptional loss of Rs 264 crore during the quarter. Higher exceptional items mainly includes costs related to merger of India foods business and non-cash impairment loss on goodwill relating to the business in Australia and tea business in the US. The accounting impairment has been recognised due to a combination of factors like COVID related impact on specific out of home business segments, changes to discount rates due to market conditions and revision in business plan sensitivities.
Mahindra Lifespace Developers declined 0.9% after reporting consolidated net loss of Rs 223.9 crore in Q4 March 2020 compared with net profit of Rs 31.27 posted in Q4 March 2019. Net sales dropped 56.7% to Rs 101.42 crore in Q4 March 2020 from Rs 234.27 crore posted in Q4 March 2019. The realtor reported a pre-tax loss of Rs 229.45 crore in Q4 March 2020 over a pre-tax profit of RS 35.65 crore in Q4 March 2019. The company reported an exceptional loss of Rs 134 crore. Mahindra Homes (MHPL), a joint venture of the company, is executing residential projects at NCR and Bengaluru. The residential project in NCR is a joint development with the landowner.
Global Markets:
European markets opened higher while most Asian markets were positive as data released by China showed industrial output bounced back in April.
China's industrial output rose 3.9% in April from a year earlier, improving from a 1.1% fall in March, according to data released Friday by the country's National Bureau of Statistics. This marks the first expansion in the metric for this year from China.
The US equity market finished volatile session higher on Thursday, 14 May 2020, snapping a two-sessions losing streak, led by a resurgence for some of the recent beaten-down stocks.
The reversal for stocks came after the U.S. Labor Department released its weekly initial jobless claims report. Another 2.981 million Americans filed for unemployment benefits in the week ending May 9. The prior week's figure was revised higher to 3.18 million from the previously reported 3.17 million jobless claims.
However, market gains capped amid weak economic data and as of warning from the U.S. Federal Reserve's chairman for an extended period of weak economic growth. At closing bell, the Dow Jones Industrial Average rose 1.62%, to 23,625.34 while The S&P 500 added 1.15% to end at 2,852.50.
U.S. President Donald Trump on Thursday said he was disappointed with China over its failure to contain the coronavirus, and that the pandemic cast a pall over his U.S.-China trade deal. His comments stoked concerns about renewed U.S.-China trade tensions.
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