The equity barometers traded near the day's high in mid-morning trade. Prime Minister Narendra Modi's Rs 20 lakh crore stimulus package to revive the coronavirus-hit economy boosted domestic investor sentiment.
At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 748.10 points or 2.38% at 32,119.22. The Nifty 50 index was up 225.05 points or 2.45% at 9,421.60.
In the broader market, the S&P BSE Mid-Cap index added 1.56% while the S&P BSE Small-Cap index gained 1.85%.
The market breadth was strong. On the BSE, 1479 shares rose and 502 shares fell. A total of 137 shares were unchanged. In the Nifty 50 index, 44 shares advanced while 6 stocks declined.
Special Economic Package:
Prime Minister Narendra Modi in his address to the nation on Tuesday (12 May) announced a special economic relief package in light of the ongoing situation due to the COVID-19 outbreak. He said the economic measures earlier announced by the government to tackle the COVID-19 pandemic, steps taken by the Reserve Bank of India (RBI), and this latest package will come up to a total of Rs 20 lakh crore, nearly 10% of India's gross domestic product (GDP). The package will focus on land, labour, liquidity and laws.
PM Modi also said Lockdown 4.0 will be a new one, with new rules. It will be implemented based on suggestions from the states and details of the same will be announced before May 18.
Buzzing Index:
The Nifty Auto index rose 3.05% to 5,882.90, extending gains for third day. The index has added 7.98% in three sessions.
Escorts (up 5.23%), Mahindra & Mahindra (up 3.92%), Maruti Suzuki India (up 3.88%), Ashok Leyland (up 3.81%), Hero MotoCorp (up 3.7%), Tata Motors (up 3.13%), Bajaj Auto (up 2.84%), TVS Motor Company (up 2.5%) and Eicher Motors (up 0.91%) advanced.
Earnings Impact:
IndiaMART InterMESH soared 3.14% to Rs 2261 after consolidated net profit jumped 57.1% to Rs 44.30 crore on 23.3% rise in net sales to Rs 170.1 crore in Q4 March 2020 over Q4 March 2019.
IndiaMART said revenues advanced on the back of an increase in the number of paying subscribers as well as higher realization from existing customers. Consolidated deferred revenue grew 17% to Rs 685 crore in Q4 March 2020 from Rs 586 crore in Q4 March 2019 leading to a much better visibility for future revenues. Consolidated EBITDA stood at Rs 52 crore in Q4 March 2020, soaring 160% from Rs 20 crore posted in the same period last year. EBITDA margin expanded to 31% in Q4 March 2020 from 15% in Q4 March 2019 partly due to increase in revenues and adoption of IndAS 116.
IndiaMART said traffic grew to 180 million in Q4 March 2020 from 171 million in Q4 March 2019, an increase of 5% year on year. Total business enquiries delivered increased to 116 million in Q4 March 2020 from 112 million in Q4 March 2019, a growth of 3% year on year. Supplier storefronts grew to 6million in Q4 March 2020, an increase of 8% YoY and paying subscription suppliers grew to 147 thousand, a growth of 14%.
Blue Star added 0.76% to Rs 479.70. On a consolidated basis, the air conditioning company's net profit slumped 88.9% to Rs 8.90 crore on a 18.6% fall in net sales to Rs 1299.36 crore in Q4 March 2020 over Q4 March 2019.
Global Markets:
Overseas, Asian stocks were trading lower amid risks of new infections as economies reopen. Developments on the coronavirus front likely continued to weigh on investor sentiment. In Asia, where the coronavirus first hit, several countries including China and South Korea have experienced an uptick in cases after restrictions were eased.
In US, stocks dropped on Tuesday as investors took profits following a warning from the top US infectious disease expert that premature moves to reopen the nation's economy could lead to novel coronavirus outbreaks and set back economic recovery.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Tuesday a vaccine will be essential in stopping the coronavirus spread, but warned it will be a while before a usable one is available. He also cautioned that the U.S. could risk additional outbreaks if states start to reopen too quickly.
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