The domestic equity benchmarks ended almost flat after a volatile session on Tuesday. While selling was wide spread, most IT and pharma stocks managed to end in the green. Adani Group stocks were in demand.
The barometer index, the S&P BSE Sensex, fell 2.56 points at 51,934.88. The Nifty 50 index lost 7.95 points or 0.05% at 15,574.85. The Nifty pared gains after hitting a record high of 15,660.75 in morning trade.
ONGC (up 3.52%), Bajaj Finance (up 2.93%) and HDFC (up 1.01%) supported the indices.
State Bank of India (SBI) rose 1.97% to Rs 432.60. The stock hit a 52-week high of Rs 435.20 in intraday today.
In the broader market, the BSE Mid-Cap index rose 0.01% and the BSE Small-Cap index slipped 0.31%.
The market breadth was negative. On the BSE, 1323 shares rose and 1812 shares fell. A total of 135 shares were unchanged.
Sebi Margin Norm:
The 75% peak trading margin norm by the Securities and Exchange Board of India (Sebi) came into effect from Tuesday. This is the third phase of implementing higher margin on day trading. The peak margin trading will be eventually raised to 100% by September.
Sebi's mandate on margin trading was brought to effect last year in a phased manner. Effective 1 March 2021, Sebi had hiked the upfront margin requirement to 50% from 25%.
Last year, Sebi introduced the so-called peak margin norms in a bid to minimize speculative trading. Under the new system, the leverage brokers can offer to their clients to trade in the cash, as well as the derivatives market has been curtailed. Any shortfall in margin collection will lead to a penalty for clients and trading members.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 17,07,24,858 with 35,50,179 deaths. India reported 18,95,520 active cases of COVID-19 infection and 3,31,895 deaths while 2,59,47,629 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India recorded 1,27,510 new COVID-19 cases and 2,795 deaths in the last 24 hours, according to data from the Union Health Ministry. The ministry said cases have been declining for the past few days, with daily new cases being the lowest in 54 days. The recovery rate continues to increase and stands at 92.09% on Tuesday.
Economy:
India's Gross Domestic Product (GDP) contracted by 7.3% in 2020-21, as per provisional National Income estimates released by the National Statistical Office on Monday. GDP growth in 2019-20, prior to the COVID-19 pandemic, was 4%. Meanwhile, the fourth quarter (Q4) of 2020-21 reported expected growth of 1.6% in GDP.
India recorded a fiscal deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA). Total revenue receipts turned out to be about Rs 88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was Rs 61,000 crore more than the revised estimate.
Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said that the revenue deficit at the end of the fiscal was 7.42%.
The reading of the Index of Eight Core Industries for last month showed an expansion of over 56% from a (-) 37.9% dip in output during the same month of last year. In March this year, the eight sectors had recorded a growth rate of 11.4%.
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) stood at 50.8 in May, down from 55.5 in April. The latest figure pointed to a marginal improvement in business conditions that was the weakest in the current ten-month sequence of expansion.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.025% as compared with 6.022% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.9050, compared with its close of 72.62 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement rose 0.57% to Rs 49,100.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.23% to 89.83.
In the commodities market, Brent crude for August 2021 settlement rose $1.99 at $70.71 a barrel.
Foreign Markets:
The US Dow Jones index futures were up 224 points, indicating a positive opening in the US market today.
Shares in Europe and Asia advanced on Tuesday, 1 June 2021. China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.
Meanwhile, the global economic outlook is improving as vaccine rollouts allow businesses to resume operations and as the United States pumps trillions of dollars into the world's largest economy, the Organisation for Economic Cooperation and Development (OECD) said on Monday, nudging its forecasts higher.
The global economy is set to grow 5.8% this year and 4.4% next year, OECD said, raising its estimates from 5.6% and 4% respectively in its last forecasts released in March.
Buzzing Segment:
Shares of Adani Group companies rallied. Adani Enterprises (up 7.56%), Adani Total Gas (up 6.79%), Adani Ports and Special Economic Zone (up 3.7%), Adani Power (up 3.14%) and Adani Transmission (up 1.75%) soared.
Earnings Impact:
Shilpa Medicare slumped 4.37%. The company's consolidated net profit slumped 77.35% to Rs 7.83 crore on 5.44% decrease in revenue from operations to Rs 208.03 crore in Q4 March 2021 over Q4 March 2020. EBITDA skid 39% to Rs 33.12 crore in Q4 FY21 as against Rs 54.50 crore over the same period last year. EBITDA margin stood at 15% in Q4 March 2021 from 24% in Q4 March 2020.
Narayana Hrudayalaya surged 12.04%. The hospital chain operator's consolidated net profit soared 467.55% to Rs 68.05 crore on a 12.76% increase in revenue from operations to Rs 837.76 crore in Q4 March 2021 over Q4 March 2020. On the NSE, the counter clocked volume of 87.44 lakh shares, a 22.14 times surge over two-week average daily volume of 3.95 lakh shares
Honeywell Automation India skid 2.91%. after the company's net profit declined 6.4% to Rs 104.02 crore in Q4 FY21 compared with Rs 111.14 crore in Q4 FY20. Revenue from operations fell 4.48% YoY to Rs 672.70 crore in Q4 FY21.
Magma Fincorp hit a 5% upper-circuit at Rs 143.05. On a consolidated basis, Magma Fincorp reported net loss of Rs 647.72 crore in Q4 FY21, higher than net loss of Rs 35.51 crore in Q4 FY20. Total income slipped 4.9% to Rs 587.14 crore in Q4 FY21 from Rs 617.62 crore in Q4 FY20.
The company's board appointed Adar Poonawalla as the chairman and Abhay Bhutada as the managing director (MD) of the company.
Rupa & Company hit an upper circuit of 20% at Rs 475.80 after the company posted a consolidated net profit of Rs 65.90 crore in Q4 FY21 compared with net loss of Rs 4.28 crore in Q4 FY20. Net sales surged 153% YoY to Rs 453.06 crore in Q4 FY21.
May 2021 Auto Sales:
TVS Motor Company fell 0.44%. The company's total auto sales surged 183.31% to 1,66,889 units in May 2021 as against 58,906 units in May 2020. Sequentially, the company's total auto sales dropped 30.17% in May 2021 over April 2021.
Eicher Motors slipped 0.41%. VE Commercial Vehicles (VECV), the unlisted subsidiary of Eicher Motors, sold 1223 units in May 2021, down by 43% as compared with 2145 units sold in April 2021. VECV's total sales have increased by 78% from 686 vehicles sold in May 2020.
Tata Motors lost 0.19%. The company's total sales in the domestic and the international market in May 2021 stood at 26,661 vehicles, down by 36% from 41,858 vehicles sold in April 2021.
Mahindra & Mahindra (M&M) shed 0.19%. The company announced that its overall auto sales (passenger vehicles+commercial vehicles+exports) for the month of May 2021 stood at 17,447 vehicles. Sequentially, the company's total auto sales declined 52.1% in May 2021 from 36,437 units sold in April 2021.
Meanwhile, M&M's total tractor sales (domestic+exports) declined 1% to 24,184 units in May 2021 as against 24,341 units in the same period last year. The company's total tractor sales have contracted 12.1% last month from 27,523 units sold in April 2021.
Ashok Leyland fell 1.50%. The auto maker recorded 61.6% decline in total sales (domestic + exports) to 3199 units in May 2021 from 8340 units in April 2021. The company's total sales, however, has increased significantly from 1420 units sold in May 2020.
Maruti Suzuki India fell 0.05%. The company posted total sales of 46,555 units in May 2021 compared with 18,539 units sold in May 2020. On a sequential basis, the car major's total sales declined 70.85% in May 2021 as compared to 159,691 units sold in April 2021.
Escorts shed 0.82%. The company's Agri Machinery Segment (EAM) in May 2021 sold 6,423 tractors against 6,594 tractors sold in May 2020, a decline of 2.6%. Sequentially, Escorts' total tractor sales declined 2.37% in May 2021 compared with 6,979 tractors sold April 2021.
Bajaj Auto gained 0.97%. The two-wheeler maker's total sales surged 114% to 271,862 units in May 2021 as against 127,128 units sold in May 2020. Sequentially, the company's total sales declined 30% in May 2021 compared to 388,016 units sold in April 2021.
Stocks in Spotlight:
ITC slipped 0.65% to Rs 215.20 ahead of the release of its quarterly earnings today.
EPL jumped 5.46%. The company announced that it has been selected as a partner by Unilever, in their journey towards achieving 100% sustainability in the oral care segment. Accordingly, EPL will supply their APR approved, 100% recyclable and fully sustainable Platina Tubes, for the toothpaste category of Unilever.
Coal India fell 0.14%. On a provisional basis, the company's coal production rose 1.7% to 42.10 million tonnes while its coal offtake surged 37.6% to 55.10 million tonnes in May 2021 over May 2020. Sequentially, the company's production rose 0.48% and offtake grew 1.85% in May 2021 over April 2021.
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