Domestic equity benchmarks reversed intraday gains and ended almost flat after a volatile session on Tuesday. Auto, metal and pharma shares witnessed profit selling. The barometer index, the S&P BSE Sensex, fell 19.69 points or 0.04% to 51,329.08. The Nifty 50 index lost 6.50 points or 0.04% to 15,109.30.
Mahindra & Mahindra (down 3.62%), ITC (down 1.76%) and TCS (down 1.22%) negated gains in Asian Paints (up 3.70%), ICICI Bank (up 0.66%) and HDFC Bank (up 0.45%).
The Sensex hit a record high of 51,835.86 and the Nifty hit a record high of 15,257.10 in mid-afternoon trade. Investors booked profits after both the indices surged about 11% in the past six consecutive sessions.
The broader market fell in tandem with the main indices. The BSE Mid-Cap index slipped 0.18% and the BSE Small-Cap index declined 0.26%.
The market breadth was negative. On the BSE, 1305 shares rose and 1661 shares fell. A total of 192 shares were unchanged.
COVID-19:
Total COVID-19 confirmed cases worldwide stood at 10,64,60,230 with 23,24,916 deaths. India reported 1,43,625 active cases of COVID-19 infection and 1,55,158 deaths while 1,04,96,308 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.075% as compared with 6.040% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.87, compared with its close of 72.97 during the previous trading session.
In the commodities market, Brent crude for April 2021 settlement rose 20 cents at $60.76 a barrel. The contract rose $1.22, or 2.06% to settle at $60.54 a barrel in the previous trading session.
Foreign Markets:
European stocks corrected on Tuesday. Most Asian markets, however, managed to end the day in the green.
In US, Wall Street reached all-time closing highs on Monday as investor optimism was stoked by prospects of a speedier economic recovery from the global health crisis, driven by increased stimulus and an accelerated vaccine rollout.
Biden has set a goal to administer at least 100 million COVID vaccine doses during his first 100 days in office, but he warned it will be very difficult to achieve herd immunity in the U.S. by the end of summer.
Commodities prices pointed to renewed optimism in the global economic recovery. Brent oil extended an advance above $60 a barrel on signs the global market is tightening and demand is improving. Bitcoin jumped to a record after Tesla Inc. bought $1.5 billion of the cryptocurrency.
Investors are taking comfort from vaccine rollouts and signs of progress on stimulus, though worries remain about stretched valuations.
Earnings Impact:
Adani Ports & Special Economic Zone (APSEZ) added 0.10%. The company posted a 16.23% increase in net profit to Rs 1576.53 crore on 11.59% rise in total income to Rs 4274.49 crore in Q3 FY21 over Q3 FY20.
Total operating revenue grew by 12% to Rs 3,746 crore in Q3 FY21 from Rs 3,336 crore in Q3 FY20. Port revenue has increased by 35% and revenue from logistics business increased by 8% during the period under review. Consolidated operating EBITDA grew by 9% to Rs 2,488 crore in Q3 FY21 from Rs 2,287 crore in Q3 FY20.
Bharat Petroleum Corporation (BPCL) shed 0.13%. The corporation's net profit surged 120.3% to Rs 2,777.62 crore on 10.7% decline in net sales to Rs 66,731.39 crore in Q3 FY21 over Q3 FY20.
The oil marketing company's other income in the third quarter was Rs 1,514.55 crore as against Rs 514.82 crore in the same period last year. In Q3 December 2020, the company incurred a one-time cost of Rs 419 crore towards an employee stock purchase option scheme 2020.
The state-owned refiner's throughput in the quarter declined 13.9% year-on-year (YoY) to 7.24 million tonne. The company's market sales in the quarter were largely flat at 11.10 million tonne as compared to the same period last year.
The Average Gross Refining Margin (GRM) of the Corporation during nine months ended 31 December 2020 Is $2.90 per barrel as compared to $3.15 per barrel in April - December 2019.
NMDC slipped 1.44%. The state-run miner's standalone net profit increased 53.2% to Rs 2108.9 crore on a 44.9% jump in net sales to Rs 4355.1 crore in Q3 FY21 over Q3 FY20. EBITDA margin improved to 66% in Q3 FY21 from 50% in Q3 FY20.
During the quarter ended December 2020, the company's iron ore production increased 70% to 96 lakh tonnes (LT), iron ore sales jumped 41% to 92.84 LT over the same period last year. The average domestic realization spiked 41% to Rs 4,402 per ton in Q3 FY21 over Q3 FY20.
Torrent Pharmaceuticals slumped 6.41%. On a consolidated basis, the drug maker's net profit jumped 18.3% to Rs 297 crore on a 2.5% increase in net sales at Rs 1,972 crore in Q3 December 2020 over Q3 December 2019. Total revenues rose 1% to Rs 1,995 crore in Q3 FY21 as against Rs 1,966 crore in Q3 FY20. Gross margins were at 72% and operating EBITDA margins were at 30%.
Gross profit rose 1% to Rs 1,433 crore in Q3 FY21 over Rs 1,424 crore in Q3 FY20. Operational EBITDA jumped 12% to Rs 607 crore in Q3 FY21 as against Rs 540 crore in Q3 FY20 driven by cost efficiencies. R&D spend grew 2% to Rs 112 crore in Q3 FY21 from Rs 110 crore in Q3 FY20.
Balkrishna Industries tumbled 10.07%. The company's consolidated net profit jumped 45.3% to Rs 325.07 crore on a 30.6% increase in net sales at Rs 1,509.23 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) surged 53.7% to Rs 427.57 crore in Q3 December 2020 as against Rs 278.27 crore in Q3 December 2019. The company's board approved capex plans worth Rs 1,900 crore will be funded by internal accruals and debt, if required.
Stocks in Spotlight:
Shares of Reliance Industries (RIL) and Future Group companies were in demand after Delhi High Court quashed an order that had stalled Future Group's deal to sell its retail assets to conglomerate RIL.
Shares of RIL added 0.23% to Rs 1955.95. Among the Future Group stocks, Future Retail (up 10%), Future Lifestyle Fashions (up 10%), Future Consumer (up 9.63%) and Future Enterprises (up 10%) advanced.
A New Delhi court last week had sided with Future's partner Amazon Inc's challenge and put Future's $3.4 billion asset sale deal with RIL on hold, which led to an appeal from the Indian retail group.
The e-commerce giant Amazon had reportedly argued that Future breached certain 2019 contracts by agreeing to the deal with RIL.
Future Retail (FRL) had filed an appeal before the Division Bench of the Delhi High Court, against an ad interim status quo order dated 2 February 2021 (Impugned Order) passed by a Ld. Single Judge in proceedings filed by Amazon.Com NV Investment Holdings LLC (Amazon) asking for a stay on the proposed transaction with the Reliance Group.
"A Division Bench comprising of the Chief Justice D. N. Patel and Justice Jyoti Singh has stayed the operation and effect of order passed by the Ld. Single Judge, for the prima facie reason that the company is not a party to the shareholders agreement dated 22 August 2019 executed between Amazon, Future Coupons and the promoters of FRL, under which arbitration was initiated by Amazon in Singapore. The court also observed that statutory authorities cannot be restrained in private litigation from acting in accordance with law," Future Retail said in a stock exchange filing.
IRCON International jumped 7.65% after the company said that its board will consider bonus issue of shares on Monday, 15 February 2021. In the same meeting, the company's board will also consider Q3 earnings and interim dividend.
JSW Steel fell 2.56%. The company's crude steel production grew by 2% to 14.32 lakh tonnes in January 2021 as compared to 14.10 lakh tonnes in January 2020. The average capacity utilisation was 96% during the month of January 2021. Production of flat rolled products fell 1% to 10.14 lakh tonnes while that of long rolled products rose 5% to 3.59 lakh tonnes in January 2021 over January 2020.
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