The key barometers were trading with modest losses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 140.93 points or 0.27% at 52,784.11. The Nifty 50 index lost 27.65 points or 0.17% at 15,832.70.
TCS (down 0.97%), HDFC (down 0.39%) and Reliance Industries (RIL) (down 0.25%) were major drags.
While the fresh COVID cases have declined in India, the Delta variant continues to be a cause of concern. Due to its higher transmissibility, fresh restrictions are being imposed in developed countries like UK & Australia.
Firm crude oil prices above $75 mark also worried investors. India is heavily dependent on oil imports for satisfying its domestic demand. A high crude price directly maps into a high trade deficit and in turn a high current account deficit (CAD). At the same time, being an important input for the aggregate economy, a crude price shock also leads to a spike in domestic inflation.
The broader market was trading higher. The S&P BSE Mid-Cap index rose 0.45%. The S&P BSE Small-Cap index added 0.52%.
Buyers outpaced sellers. On the BSE, 1,854 shares rose and 1,357 shares fell. A total of 169 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 678.84 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,832.76 crore in the Indian equity market on 25 June 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,10,96,913 with 39,23,105 deaths. India reported 5,72,994 active cases of COVID-19 infection and 3,96,730 deaths while 2,93,09,607 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported 46,148 new COVID-19 cases and 979 deaths in the last 24 hours, according to data released by the Union Health and Family Welfare Ministry on Monday. This is for the first time in over two and half months that the death toll has come below the 1,000-mark and the 11th consecutive day in the last two months when the toll has been below the 2,000-mark. The total caseload rose to 3,02,79,331 as India crossed the mark of over three crore COVID-19 cases last Wednesday.
Economy:
Union Finance Minister Nirmala Sitharaman will address a press conference today, 28 June 2021 at 3 PM in New Delhi.
Meanwhile, India's FY22 GDP growth rate is expected at 9.6%, lower than an earlier estimate of 10.1%, India Ratings and Research (Ind-Ra) said on Friday, 25 June 2021. According to the ratings agency, given the speed and scale of COVID-19 2.0, the earlier GDP growth estimated at 10.1% for FY22 is unlikely to hold. Now, Ind-Ra expects GDP growth to come in at 9.6% (base case) in FY22. This rate is, however, contingent upon India vaccinating its entire adult population by 31 December 2021.
Economic think-tank NCAER expects the Indian economy to grow 8.4-10.1% for the current financial year as against a contraction of 7.3% in the last fiscal. Releasing its quarterly review of the economy, the National Council of Applied Economic Research (NCAER) has pitched for strong fiscal support to push economic growth. The economic growth, according to NCAER's estimates, had contracted by 7.3% during 2020-21.
Gainers & Losers:
Dr Reddy's Laboratories (up 1.83%), Hindalco Industries (up 1.72%), Divi's Laboratories (up 1.68%), ONGC (up 1.61%) and Adani Ports & Special Economic Zone (APSEZ) (up 1.59%) were major gainers in Nifty 50 index.
HDFC Life Insurance Company (down 2.80%), Titan Company (down 1.24%), Shree Cement (down 0.90%) and HCL Technologies (down 0.81%) were major losers in Nifty 50 index.
Earnings Impact:
MSTC climbed 6.04% after the company's consolidated net profit soared 1,510% to Rs 75.83 crore on 60.5% jump in revenue from operations to Rs 311.18 crore in Q4 March 2021 over Q4 March 2020. Profit before tax surged 195.3% to Rs 59.95 crore in Q4 FY21 as against Rs 20.30 crore in Q4 FY20. The board recommended a dividend of Rs 4.40 per equity share for the FY2020-21.
JSW Energy lost 0.36%. The company's consolidated net profit jumped 16.5% to Rs 104.75 crore on 12.5% decline in net sales to Rs 1,569.62 crore in Q4 March 2021 over Q4 March 2020. Profit before tax surged 42.4% to Rs 131.71 crore in Q4 FY21 as against Rs 92.50 crore in Q4 FY20. The board has recommended a dividend of Rs 2 per equity share. EBITDA grew 8% to Rs 677 crore in Q4 FY21 from Rs 629 crore in Q4 FY20. The consolidated net worth and consolidated net debt as on 31 March 2021 were Rs 14,507 crore and Rs 6,206 crore respectively, resulting in a net debt to equity ratio of 0.43x. Cash balances stood at a healthy Rs 2,137 crore.
Finolex Industries soared 6.62% after the company consolidated net profit soared 409.40% to Rs 298.84 crore on 62.5% jump in net sales to Rs 1,249.34 crore in Q4 March 2021 over Q4 March 2020. Profit before tax surged 356.50% to Rs 405.07 crore in Q4 FY21 as against Rs 88.73 crore in Q4 FY20. The board has recommended a final dividend of Rs 2 per equity shares of Rs 2 and a special dividend of Rs 2 per share for the FY 2020-21.
Hindustan Copper declined 2.82%. On a consolidated basis, Hindustan Copper reported a net loss of Rs 36.82 crore in Q4 FY21, lower than net loss of Rs 514.27 crore in Q4 FY20. Net sales surged 255.70% to Rs 522.24 crore in Q4 FY21 as against Rs 146.84 crore in Q4 FY20. Pre-tax loss was at Rs 63.21 crore in Q4 FY21 as against a pre-tax loss of Rs 481.19 crore in Q4 FY20.
Global Markets:
European shares declined while most Asian stocks were trading lower on Monday, 28 June 2021 as a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs.
Meanwhile, official data showed that China's industrial profits for May slowed. Data released Sunday by China's National Bureau of Statistics showed profits at China's industrial firms rose 36.4% in May as compared with a year earlier. That was a slowdown from the 57% year-on-year growth posted in April.
U.S. stocks rose on Friday with the S&P 500 building on its rally to records, as investors bet that higher inflation will be temporary as the economy continues to recover from the pandemic.
Bank shares jumped after the Federal Reserve announced the banking industry could easily withstand a severe recession. The Fed, in releasing the results of its annual stress test, said the 23 institutions in the 2021 exam remained well above minimum required capital levels during a hypothetical economic downturn. The decision cleared the way for the banks to raise dividends and buy back more stock, which was suspended during the pandemic.
A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday.
Investors are concerned about a spike in coronavirus infections in Asia with Australia's most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned. Indonesia is battling record high cases while a lockdown in Malaysia is set to be extended. Thailand too announced new restrictions in Bangkok and other provinces.
Meanwhile, the World Health Organization on Friday, 25 June 2021 urged fully vaccinated people to continue to wear masks, social distance and practice other COVID-19 pandemic safety measures as the highly contagious delta variant spreads rapidly across the globe. WHO officials have said the variant, first found in India but now in at least 92 countries, is the fastest and fittest coronavirus strain yet, and it will "pick off" the most vulnerable people, especially in places with low COVID-19 vaccination rates.
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