Equity indices ended with decent gains on Thursday, tracking positive global shares. The Nifty scaled 14,700 mark. Metal stocks continued to outshine other sectors. Auto and IT were the other sectoral leaders. US President Joe Biden's decision to waive intellectual property rights on vaccines boosted global stock markets.
The S&P BSE Sensex, added 272.21 points or 0.56% to 48,949.76. The Nifty 50 index gained 106.95 points or 0.73% to 14,724.80.
HDFC (up 2.2%), Infosys (up 1.46%), ICICI Bank (up 1%) and Reliance Industries (up 0.53%) supported the indices.
In the broader market, the BSE Mid-Cap index rose 0.91% and the BSE Small-Cap index added 0.59%.
The market breadth was positive. On the BSE, 1,622 shares rose and 1,371 shares fell. A total of 134 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 15,52,16,499 with 32,42,360 deaths. India reported 35,66,398 active cases of COVID-19 infection and 2,30,168 deaths while 1,72,80,844 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India on Thursday reported 4,12,262 new cases of COVID-19 and 3,980 deaths in the last 24 hours, according to the Union Health Ministry. A total of patients infected with the novel coronavirus were 3,29,113 discharged during the same time period.
The five most affected states by total cases are Maharashtra (48,80,542), Kerala (17,43,932), Karnataka (17,41,046), Uttar Pradesh (13,99,348), and Tamil Nadu (12,72,602).
Economy:
S&P Global Ratings on Wednesday slashed India's GDP growth forecast for the current financial year to 9.8% saying the second COVID-19 wave may derail the budding recovery in the economy and credit conditions. The US-based rating agency in March had a 11% GDP growth forecast for India for the April 2021-March 2022 fiscal on account of a fast-economic reopening and fiscal stimulus.
S&P, which currently has a 'BBB-' rating on India with a stable outlook, said the depth of the Indian economy's deceleration will determine the hit on its sovereign credit profile. It said the projections assume that initial shocks to private consumption and investment filter through to the rest of the economy.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 5.975% as compared with 5.978% 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 73.78, compared with its close of 73.91 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement rose 0.18% to Rs 47,085.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.33% to 91.01.
In the commodities market, Brent crude for July 2021 settlement fell 16 cents at $68.80 a barrel. The contract rose 8 cents, or 0.12% to settle at $68.96 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Thursday as investors looked ahead to the U.S. jobs report due later this week for clues about how long the Fed will stay on hold. The U.S. jobs report for April is due on Friday.
U.S. stocks rebounded on Wednesday as strong earnings results and economic optimism pushed the Dow Jones Industrial Average to a record high.
The Biden administration announced on Wednesday that it supports waiving intellectual patent protections for COVID-19 vaccines, as countries struggle to manufacture the life-saving doses. The decision will support the increased production of vaccines globally as countries, including India, continue to reel under the impact of the pandemic.
Earnings Impact:
Tata Steel jumped 2.96% after the steel maker reported a consolidated net profit of Rs 6,644.15 crore in Q4 FY21 as against net loss of Rs 1,481.34 crore in Q4 FY20. Net sales during the quarter increased 39.4% year-on-year (YoY) to Rs 48,950.89 crore. The steel major reported a pre-tax profit of Rs 9,356.86 crore in the fourth quarter compared with net loss of Rs 1,870.55 crore reported in the same period last year. EBITDA surged at Rs 14,290 crore in Q4 FY21 compared with Rs 4,824 crore in Q4 FY20 as Rs 9,652 crore in Q3 FY21. EBITDA per ton surged to Rs 18,253 in Q4 FY21 from Rs 6,838 in Q4 FY20 and from Rs 13,021 in Q3 FY21. While the company's steel production increased by 1.5% to 8.02 million tonnes, deliveries jumped by 10.9% to 7.83 million tonnes in Q4 FY21 over Q4 FY20.
Gillette India gained 2.46% after the company's standalone net profit surged 101.7% to Rs 105.66 crore on 32% jump in net sales to Rs 536.62 crore in Q3 FY21 over Q3 FY20. The growth was largely behind base impact from lockdown related material operational disruption in the corresponding period last year, a one-time write back of provision of Rs 16.28 crore, resulting from settlement of certain tax disputes and productivity savings.
Deepak Nitrite fell 0.87%. The chemical maker reported 68.4% jump in consolidated net profit to Rs 290.11 crore on 38.6% rise in net sales to Rs 1463.23 crore in Q4 FY21 over Q4 FY20. Profit before tax surged 94.1% to Rs 389.94 crore in Q4 FY21 from Rs 200.85 crore registered in Q4 FY20. Total expenses rose by 27.1% to Rs 1008.57 crore in Q4 FY21 over Q4 FY20.
Angel Broking hit an upper circuit of 20% at Rs 508.30 after the company's consolidated net profit surged 229.9% to Rs 101.91 crore in Q4 FY21 from Rs 30.89 crore in Q4 FY20. Total income during the quarter increased 109.8% to Rs 418.86 crore from Rs 199.63 crore reported in the same period last year. EBDAT increased 34% to Rs 146.30 crore in Q4 FY21 from Rs 109.30 crore in Q3 FY21. EBIDTA margin remained stable at 49% in Q4 FY21 as compared to Q3 FY21 despite substantially higher client additions. The company continued to witnessed strong gross client additions of 0.96 million in Q4 FY21 as compared to 0.51 million in Q3 FY21.
Adani Green Energy gained 3.11% after the company's consolidated net profit soared 62.5% to Rs 104 crore on 41.3% surge in net sales to Rs 979 crore in Q4 FY21 over Q4 FY20. The sale of energy for Q4 FY21 increased by 24% Y-o-Y (year-on-year) to 1,614 million units as against 1,303 million units in Q4 FY20. Total EBITDA jumped 33% to Rs 715 crore in Q4 FY21 from Rs 539 crore in Q4 FY20. Cash profit climbed 120% to Rs 373 crore in Q4 FY21 over Rs 168 crore in Q4 FY20.
Sundram Fasteners fell 0.32%. The company reported 178% jump in standalone net profit to Rs 130.02 crore in Q4 FY21 as against Rs 46.80 crore in Q4 FY20. Revenue from operations was at Rs 1,079.25 crore for the quarter ended 31 March 2021 as against Rs 719.60 crore during the same period in the previous year, registering a growth of 50%. Profit before tax stood at Rs 172.86 crore in Q4 FY21, up by 132% from Rs 74.52 crore in Q4 FY20.
Oracle Financial Services Software slipped 1.49%. On a consolidated basis, the company reported 7.1% rise in net profit to Rs 460.31 crore on 2.2% fall in net sales to Rs 1210.86 crore in Q4 FY21 over Q3 FY21. Profit before tax in Q4 FY21 stood at Rs 604.72 crore, up by 0.3% from Rs 602.67 crore in Q3 FY21. The board of directors of the company has declared an interim dividend of Rs 200 per equity share for the financial year 2020-21.
Coforge climbed 17.46% after the company's consolidated net profit rose 9% to Rs 133 crore on 6% increase in net sales to Rs 1,261.50 crore in Q4 FY21 over Q3 FY20. The firm has reported continued growth-led momentum, with consolidated revenue growing by 7.1% in dollar terms to $172.1 million during Q4 FY21. In constant currency terms, revenue grew 5.1% over the preceding quarter. In rupee terms, revenue rose 6% sequentially and up by 13.7% year-on-year (Y-o-Y) to Rs 1261.50 crore during Q4 FY21.
IIFL Finance hit an upper circuit of 5% at Rs 266 after the company reported a consolidated net profit of Rs 247.62 crore in Q4 FY21, steeply higher than net profit of Rs 58.74 crore in Q4 FY20. Total income increased by 22.8% to Rs 1648.62 crore in Q4 FY21 over Q4 FY20. Profit before tax in Q4 FY21 jumped to Rs 320.58 crore from Rs 14.57 crore in Q4 FY20.
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