The sentiment got a boost after Fitch Ratings on Wednesday said that Indian economy may grow at 9.5% in next fiscal. After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp real GDP growth rate of 9.5% next year provided it avoids further deterioration in financial sector health, Fitch Ratings said. It forecast a 5% contraction in the GDP in the ongoing financial year.
The Nifty opened with decent gains at 10,072.60 but witnessed profit booking and touched the day's low of 10,036 in morning trade. After trading in a narrow range for most part of the session, it firmed up in last half hour of trade which pushed the index above 10,100 level.
The broader market was firm. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index added 0.96% each.
There were more buyers then sellers. On the BSE, 1,529 shares rose and 1020 shares fell. A total of 158 shares were unchanged. In Nifty 50 index, 28 stocks advanced and 22 stocks declined.
The U.S. Federal Reserve wraps its two-day meeting later on Wednesday. No major policy announcements are expected from the Fed, but the U.S. central bank will issue its first economic projections since December. The Fed's attempts to gauge the economic cost of widespread pandemic-related lockdowns as well as any hints of future stimulus will be watched by investors.
Traders remained cautious amid worries about the rising coronavirus cases in the country. Total COVID-19 confirmed cases worldwide stood at 72,40,085 far with 4,11,292 deaths. India reported 1,33,632 active cases of COVID-19 infection and 7,745 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Q4 Results Today:
Shriram Transport Finance Co. (up 1.99%), Indian Hotels Co. (up 4.42%), Mahanagar Gas (down 0.15%), Century Textiles & Industries (up 0.85%), Dhanuka Agritech (up 4.42%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Hero MotoCorp declined 3.97% after consolidated net profit slumped 21.6% to Rs 604.63 crore on 20.4% fall in net sales to Rs 6,333.51 crore in Q4 FY20 over Q4 FY19. Profit before tax stood at Rs 637.53 crore in Q4 March 2020, down by 44% from Rs 1,137.49 crore in Q4 March 2019. The company sold 13.23 lakh two-wheeler units during the fourth quarter, which is lower by 25.7% as compared to 17.81 lakh two-wheeler sold in the same period last year. The EBITDA declined 38.3% to Rs 660 crore in Q4 FY20 from Rs 1,069 crore in Q4 FY19. EBITDA margin stood at 10.6% as on 31 March 2020 as against 13.6% as on 31 March 2019.
KRBL lost 6.68%. The rice packaging company reported an 8% rise in consolidated net profit to Rs 149.68 crore on 11.2% decline in net sales to Rs 1,062.50 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) stood at Rs 201.01 crore in Q4 March 2020, rising 1.8% from Rs 197.42 crore in Q4 March 2019. The result was announced after market hours yesterday, 9 June 2020.
Bombay Dyeing & Manufacturing Co. slipped 5.4% after consolidated net profit slumped 95.9% to Rs 48.57 crore on 88.8% drop in net sales to Rs 313.10 crore in Q4 March 2020 over Q4 March 2019. Pre-tax loss stood at Rs 171.44 crore in Q4 March 2020 as against a pre-tax profit of Rs 1,200.20 crore in Q4 March 2019.
Mangalore Refinery & Petrochemicals (MRPL) fell 1.05% after it reported a standalone net loss of Rs 1,596.44 crore in the fourth quarter. The company had reported a net profit of Rs 318.87 crore in the same period last year. The total throughput of the refinery stood at 3.83 million tonnes in the Q4 March 2020 as against 4.29 million tonnes in the corresponding period of the previous financial year. MRPL said that the outbreak of COVID-19 pandemic globally and resultant lockdown in many countries, including India from 25 March 2020 has impacted the business of the company in the fourth quarter. In terms of the future outlook, it said that there may be lower revenues and refinery throughput in the near future.
Stocks in Spotlight:
Maruti Suzuki India rose 0.32%. The automaker said its total production slumped 97.54% to 3,714 units in May 2020 as against 1,51,188 units in May 2019. Total passenger vehicle production tanked 97.53% to 3,652 units in May 2020 over 1,48,095 units in May 2019.
Cipla rose 0.4% after the drug major said it signed agreements on Tuesday, 9 June 2020, to acquire 21.85% stake in GoApptiv on a fully diluted basis. Cipla will acquire 21.85% in GoApptiv in two stages for a total cash consideration of Rs 9 crore. GoApptiv offers digital solutions for integrated brand sales management, digital marketing, channel engagement for pharmaceutical companies.
Yes Bank rose 1.84% after the bank on Tuesday (9 June) said that Madhu Kapur and other family members have withdrawn a case filed against the bank in 2013. The families of the founders of Yes Bank, Ashok Kapur (died in the November 2008) and Rana Kapoor, were locked in a dispute over the nomination of people to the board of the bank. Madhu Kapur, wife of the bank's late co-founder Ashok Kapur, had filed a petition in the Bombay high court seeking various reliefs including recognition of the family's right to participate in the management of the bank. The suit also sought to restrain individual directors from acting as such or holding themselves out as directors of the bank, and restrain the bank from making or continuing with any application to any regulator/authorities for reclassifying the Kapur familys shareholding into a non- promoter shareholding. Yes Bank announced on Tuesday (9 June) that Kapur family has agreed to reclassify its shareholding as "non-promoter" as per an intimation on 30 May. The suit was withdrawn following reclassification of the familys holding and the Bombay High Court allowed the withdrawal. As on 31 March 2020, Madhu Kapur and Rana Kapoor held 1.12% each in Yes Bank.
Godrej Consumer Products slumped 3.78% after the FMCG major on Tuesday said its managing director and CEO Vivek Gambhir has resigned citing personal reasons. Gambhir will step down from the position on 30 June. Nisaba Godrej, currently the executive chairperson of GCPL, will assume the charge of MD and CEO of the company with effect from 1 July 2020, according to a company statement. Gambhir, who had joined Godrej Group in August 2009, was elevated as the MD and CEO of the company in July 2013.
Global Markets:
European markets traded with losses while Asian markets closed on a mixed note on Wednesday. The lifting of lockdown restrictions continued to fuel hope for an economic rebound from the coronavirus crisis.
The Organisation for Economic Co-operation and Development (OECD) will release its economic outlook today, a twice-yearly analysis of the economic prospects of member countries. Meanwhile, Euro-area finance ministers meet on Thursday to discuss the EU's recovery package and Eurogroup presidency succession.
In economic data, China's producer price index for May fell 3.7% from a year earlier, according to China's National Bureau of Statistics. Meanwhile, its consumer price index rose 2.4% year-on-year in May.
Shares on Wall Street declined in Tuesday amid concerns that the recent rally in risk assets overshot the U.S. actual economic prospects. The Dow closed down 300 points Tuesday, while the Nasdaq Composite ended with a gain of over 46 points .
The National Bureau of Economic Research also on Monday declared the U.S. recession started in February 2020, ending a 128-month expansion,the longest dating to 1854. The World Bank's forecast is for the global economy to shrink by 5.2% this year because of the coronavirus pandemic
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