The Sensex and the Nifty ended a volatile session almost flat on Tuesday. PSU banks and pharma stocks tumbled. As per provisional closing, the barometer S&P BSE Sensex declined 13.86 points or 0.04% at 34,947.52. The Nifty 50 index fell 1.15 points or 0.01% at 10,305.85.
The Nifty opened higher 10,382.60 and traded in a narrow range in morning session. The index traded sideways throughout the day with decent gains till afternoon session. Selling emerged in mid afternoon trade, which dragged the index to the day's low of 10,267.35. The index regained 10300 mark in late trade.
The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index fell 0.14% while the S&P BSE Small-Cap index declined 0.75%.
The market breadth was negative. On the BSE, 1,293 shares rose and 1,467 shares fell. A total of 140 shares were unchanged. In Nifty 50 index, the breadth was negative with 20 stocks advancing and 30 stocks declining.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,937.06 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,036.13 crore in the Indian equity market on 29 June, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 1,03,02,867 far with 5,05,518 deaths. India reported 2,15,125 active cases of COVID-19 infection and 16,893 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
PM Modi's Address to the Nation:
Prime Minister Narendra Modi will address the nation at 16:00 IST today, 30 June 2020. This would be the prime minister's sixth address to the nation since the outbreak of the pandemic.
Unlock 2 Guidelines:
The Union government on Monday night issued guidelines for the month-long 'Unlock 2' - the phased re-opening of activities that were barred to contain the coronavirus spread in the country. Under the new guidelines, social/ political/ sports/ entertainment/ academic/ cultural/ religious functions and other large congregations remain prohibited. Metro Rail services shall remain shut and cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, bars, auditoriums, assembly halls and similar places will also not be allowed to open. All activities apart from those prohibited will be allowed outside containment zones.
Lockdown will remain in force in COVID-19 containment zones till 31 July 2020 and district authorities to demarcate zones, according to the guidelines. Night curfew will remain in force between 10 pm and 5 am throughout country, except for essential activities. Unlock 1 ends on 30 June 2020 and Unlock 2 will be in force from 1 to 31 July 2020.
Buzzing Index:
The Nifty Pharma index slumped 1.52% to 9,981.50. Cadila Healthcare (down 3.79%), Torrent Pharmaceuticals (down 2.55%), Aurobindo Pharma (down 2.3%), Sun Pharmaceutical Inds (down 2.12%), Biocon (down 1.95%), Divi's Laboratories (down 1.62%), Lupin (Down 1.41%) and Dr.Reddy's Lab (down 0.74%) were top losers in Nifty Pharma index.
Q4 Results Today:
ONGC (down 1.15%) and Vodafone Idea (down 4.86%) will announce their quarterly earnings today.
Earnings Impact:
Tata Steel advanced 1.67%. The steel major reported a consolidated net loss (from continuing operations) of Rs 1,236 crore in Q4 March 2020 as against net profit of Rs 2,353 crore in Q4 March 2019. Turnover declined 20.40% to Rs 33,770 crore in Q4 FY20 from Rs 42,424 crore in the same period last year. The result was announced after market hours yesterday, 29 June 2020. The company reported an exceptional loss of Rs 3,406 crore in Q4 FY20 on the back of impairment of non-current assets and loss on preference share investments. Profit before exceptional items stood at Rs 1,906.40 crore in Q4 FY20, declining 55% from Rs 4,241.01 crore in Q4 FY19. Tata Steel received a tax rebate of Rs 263.28 crore in Q4 FY20 as against total tax expense of Rs 1,899.06 crore in Q4 FY19.
Raymond declined 3.76% after consolidated a net loss of Rs 69.10 crore in Q4 March 2020 compared with net profit of Rs 67.70 crore in Q4 March 2019. Consolidated net sales dropped 29.31% to Rs 1,278.65 crore in Q4 FY20 over Rs 1,808.71 crore in Q4 FY19. Topline and profitability was impacted due to COVID-19 and channel stock correction in branded apparel segment. The primary sale of March was impacted especially for the wedding season of April to June 2020. The sales for the good wedding season was completely wiped off. Overall topline impact was Rs 414 crore and EBITDA impact was Rs 134 crore. In Q1 FY21, the company has raised Rs 145 crore through NCDs at market benchmarked rates.
Petronet LNG fell 1.89% after consolidated net profit dropped 19.80% to Rs 373.20 crore on 2.19% rise in net sales to Rs 8,567.15 crore in Q4 March 2020 over Q4 March 2019. The board has recommended a final dividend of Rs 7 per equity share for the year 2019-20.
Central Bank of India tumbled 11.8% after the bank reported net loss of Rs 1,529.07 crore in Q4 March 2020 compared with a net loss of Rs 2,477.41 crore in Q4 March 2019. Total income rose 1.6% to Rs 6,723.73 crore in Q4 FY20 over Q4 FY19. The bank reported pre-tax loss of Rs 1,661.09 crore in Q4 FY20, lower than pre-tax loss of Rs 3,214.99 crore in Q4 FY19. Gross non-performing assets (NPAs) stood at Rs 32,589.08 crore as on 31 March 2020 as against Rs 33,258.59 crore as on 31 December 2019 and Rs 32,356.04 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 18.92% as on 31 March 2020 as against 19.99% as on 31 December 2019 and 19.29% as on 31 March 2019. The ratio of net NPAs to net advances stood at 7.63% as on 31 March 2020 as against 9.26% as on 31 December 2019 and 7.73% as on 31 March 2019.x
Bharat Electronics (BEL) rallied 2% after consolidated net profit jumped 74.27% to Rs 1,046.97 crore on 49.18% increase in total revenue from operations to Rs 5,816.77 crore in Q4 FY20 over Q4 FY19. BEL's order book stood at Rs 51,970 crore as of 1 April 2020. The company received a total order of Rs 13,200 crore during fiscal year 2019-2020. It exported $48.59 million during FY19-20.
The Phoenix Mills' slipped 0.4% after consolidated net profit slumped 79.56% to Rs 46.69 crore on 44.8% drop in net sales to Rs 399.23 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) tanked 76.51% to Rs 76.14 crore in Q4 FY20 as against Rs 324.18 crore in Q4 FY19. Total tax expense skid 45.32% to Rs 27.88 crore during the period under review. Consolidated EBITDA for the quarter dropped 46% to Rs 204.30 crore in Q4 FY20 over Q4 FY19. EBITDA margin was at 51% in Q4 FY20 as against 52% in Q4 FY19.
Global Markets:
Most European markets were trading higher while Asian markets closed higher on Tuesday buoyed by overnight gains on Wall Street and better-than-expected data from China.
China's factory activity expanded at a faster pace in June as the economy continued to recover after the government lifted strict lockdowns and ramped up investment. The official manufacturing Purchasing Manager's Index (PMI) rose to a three-month high of 50.9 in June 2020 from 50.6 in May 2020, above the 50-point mark that separates growth from contraction on a monthly basis.
Meanwhile, Japan's industrial production in May 2020 dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country's Ministry of Economy, Trade and Industry.
The US stock market finished session sharp higher on Monday, 29 June 2020, as investors chased for bargain hunting after a steep sell-off last Friday, thanks to better-than-estimated economic data which helped to overshadow concern over an increase in coronavirus cases.
The Pending Home Sales Index, an advance look at home sales based on signed purchase and sale agreements, fell 5.1% in May 2020 compared to the same month last year, according to data from the National Association of Realtors (NAR). When compared to April of 2020, the news was much better. Pending sales increased by 44.3% last month after two consecutive months of decline, NAR reported.
Meanwhile, many U.S. states are reportedly returning to previous restrictions following a surge in new coronavirus cases in the country last week. As many as 36 states have reported large number of new cases in the past week.
Federal Reserve Chairman Jerome Powell said the outlook for the US economy is "extraordinarily uncertain" and the success of the recovery effort will depend in large part on the country's ability to contain the spread of the coronavirus.
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