The market ended with strong gains on Friday, supported by positive global shares. Index heavyweight Reliance Industries (RIL) rallied 6% on turning net-debt free after raising Rs 1.69 lakh crore in less than two months.
As per provisional closing, the barometer S&P BSE Sensex jumped 523.85 points or 1.53% at 34,731.73. The Nifty 50 index rallied 164.8 points or 1.63% at 10,256.45.
The Nifty saw a decent gap up opening at 10,119, but hit an intraday low of 10,072.65 in early trade. The index firmed up once again in mid-morning trade and marched ahead as the session progressed. It hit the day's high of 10,272.40 in mid-afternoon trade, but pared gains in late trade.
The broader market ended on a firm footing. The S&P BSE Mid-Cap index advanced 1.03%. The S&P BSE Small-Cap index gained 1.37%.
Buyers outnumbered sellers. On the BSE, shares 1,788 rose and 857 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 84,91,673 far with 4,54,023 deaths. India reported 1,63,248 active cases of COVID-19 infection and 12,573 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Stocks in Spotlight:
RIL hit a record high of Rs 1788.60 in intraday trade today. RIL has raised over Rs 168,818 crore in just 58 days through investments from global tech investors in Jio Platforms (Rs 115,693.95 crore) and through rights issue of RIL (Rs 53,124.20 crore). Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of Rs 1.75 lakh crore. RIL's net-debt as on 31 March 2020 was at Rs 161,035 crore.
CSB Bank soared 9.38% after the bank said its board has appointed Pralay Mondal as the organization's president (retail, SME, operations and IT). Mondal is expected to join CSB Bank in September 2020, the private lender said in a statement today, 19 June. Pralay Mondal has recently tendered his resignation from his current position a executive director and head of retail banking at Axis Bank.
Alembic Pharmaceuticals gained 4% after the company said it received establishment inspection report (EIR) for general oral solid formulation facility at Panelav, Gujarat. The US Food and Drug Administration (US FDA) had conducted the inspection between 9th and 13th of March 2020. "EIR is in place for all our manufacturing facilities for international markets," the company said in a filing today.
In a separate announcement today, Alembic Pharma said that its joint venture, Aleor Dermaceuticals (Aleor), received approval from the USFDA for its abbreviated new drug application (ANDA) Adapalene Gel USP, 0.3%. The gel is indicated for the topical treatment of acne vulgaris in patients 12 years of age and older. Adapalene Gel USP, 0.3% has an estimated market size of $34 million for twelve months ending March 2020 according to IQVIA.
Q4 Results Today:
Punjab National Bank (up 1.62%), LIC Housing Finance (up 0.44%), Camlin Fine Sciences (down 3.5%), Century Plyboards (I) (up 8%), Dalmia Bharat Sugar and Industries (up 8.4%), Greenlam Industries (up 0.73%), Kirloskar Oil Engines (up 0.43%), Novartis India (down 1.2%), PTC India (down 0.12%) and Zuari Agro Chemicals (up 0.98%) are some of the companies that will announce their quarterly earnings today.
Earnings Impact:
Cadila Healthcare shed 0.85% to Rs 362.50 after the company's consolidated net profit fell 14.8% to Rs 391.9 crore as net sales remained flat at Rs 3,627.2 crore in Q4 FY20 over Q4 FY19. On the segmental front, pharmaceuticals revenue stood at Rs 3,264.3 crore (down 1.6% YoY) while the income from the sale of consumer products was at Rs 487.8 crore (up 17.2% YoY) in the fourth quarter. Profit before tax stood at Rs 522 crore in Q4 March 2020, down by 13.8% from Rs 605.9 crore posted in Q4 March 2019.
Bajaj Electricals rose 1.45%. The company reported a consolidated net loss of Rs 1.14 crore in Q4 March 2020 as against net profit of Rs 24.73 crore in Q4 March 2019. Total revenue from operations in the fourth quarter fell 26.7% year-on-year (YoY) to Rs 1,300.66 crore. Pre-tax loss stood at Rs 2.07 crore in Q4 FY20 as against pre-tax profit of Rs 31.70 crore in Q4 FY19. The company wrote back taxes to the tune of Rs 1.26 crore in Q4 March 2020. It had incurred a total tax expense of Rs 8.62 crore in Q4 March 2019. For the quarter, consumer products segment of the company has earned total revenue of Rs 747 crore as against Rs 743 crore, a growth of 0.5% over the corresponding previous quarter. EPC (engineering, procurement and construction) segment has achieved a total revenue of Rs 554 crore as against Rs 1032 crore, registering a de-growth of 46.3% over the corresponding quarter of the previous year. CP operating EBIT registered a growth of 37.4% over the corresponding previous quarter. Margins are at 6.8%.
City Union Bank slumped 7.23% after the bank reported a net loss of Rs 95.29 crore in Q4 March 2020 as compared to a net profit of Rs 175.11 crore in Q4 March 2019. Total income rose 7.9% year-on-year (YoY) to Rs 1220.98 crore during the quarter. The bank's provisions and contingencies surged to Rs 450.38 crore in Q4 March 2020 from Rs 90.67 crore in Q4 March 2019. Based on basic available information at this point of time and as a prudent measure, the bank has made a provision of Rs 125 crore in the current quarter which includes an ad hoc COVID-19 provision of Rs 102 crore over and above the RBI prescribed norms. The ratio of gross NPAs to gross advances stood at 4.09% as on 31 March 2020 as against 3.50% as on 31 December 2019 and 2.95% as on 31 March 2019. The ratio of net NPAs to net advances stood at 2.29% as on 31 March 2020 as against 1.95% as on 31 December 2019 and 1.81% as on 31 March 2019.
Bajaj Consumer Care tanked 5.25% after consolidated net profit fell 61% to Rs 23.29 crore on 28.3% decline in net sales to Rs 172 crore in Q4 March 2020 over Q4 March 2019. The company said Q4 March 2020 performance was hugely impacted due to disruption in sales in the month of March led by lockdown to contain the outbreak of COVID-19. The firm said the macroeconomic situation has been challenging throughout 2019-20 with the hair oil category facing significant headwinds with tepid growth. The impact on industry has worsened since lockdown in March due to COVID 19 pandemic. The company said it has been aggressive in managing cost across the organization reviewing each cost item and conserving cash on balance sheet.
MOIL declined 3.82% after consolidated net profit slumped 90.4% to Rs 13.47 crore on 43% drop in net sales to Rs 248.66 crore in the fourth quarter as compared to the corresponding period last year. Consolidated profit before tax stood at Rs 21.62 crore in Q4 March 2020, tumbling 89% from Rs 193.99 crore in Q4 March 2019. Current tax expense slumped 92.80% YoY to Rs 4.57 crore during the quarter
Thermax jumped 3.99%. The electrical equipment firm's consolidated net profit tanked 69.02% to Rs 39.03 crore on 36.2% drop in net sales to Rs 1,322.96 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) slumped 69.5% to Rs 58.60 crore in Q4 March 2020 as against Rs 192.18 crore in Q4 March 2019. Current tax expenses declined 78.4% to Rs 15.08 crore in Q4 March 2020 as against Rs 69.93 crore in Q4 March 2019. The company said that its revenue and profitability was impacted by the nationwide lockdown in March. The company's international facilities continued operations, albeit at a scaled down pace. Chemical facilities, classified as essential services, resumed production in early April 2020, followed by the progressive reopening of all the other facilities by the end of May 2020 in adherence to Government guidelines.
Global Markets:
European markets were trading higher while Asian stocks closed on a positive note on Friday, shrugging off concerns over fresh spike in global coronavirus cases. On the whole, markets have reportedly been sideswiped this week on fresh contagion concerns, prompting some investors to temper their optimism about how quickly the global economy can recover for the pandemic.
The Bank of England on Thursday added another 100 billion to its quantitative easing program in a bid to shore up the U.K. economy amid the fallout from the coronavirus crisis, taking the total value of its Asset Purchase Facility (APF) to 745 billion.
On the data front, UK retail sales for May 2020 were down 13.1% Y-o-Y (year-on-year). On a monthly basis, retail sales were up 12% as lockdown measures eased slightly, according to the Office for National Statistics. Germany's statistics office on Friday reported a 2.2% annual fall in inflation for May 2020 and a 0.4% decline from the previous month.
Meanwhile, China is grappling with its worst outbreak since the initial one in Wuhan. In Beijing, a new round of cases has reportedly prompted school closures and cancelled flights into and out of the city, though authorities have said the outbreak is under control.
The US stocks finished mixed after swinging between slight gains and losses in a choppy trading session on Thursday, 18 June 2020, as risk sentiments were muted after stubbornly high jobless claims data and reports of rising COVID-19 case counts in several states. The number of Americans filing for unemployment benefits edged down last week, the Labor Department said on Thursday, though applications remained historically high at 1.5 million.
Several US states have seen a spike in coronavirus cases, and Texas, Arizona, and North Carolina this week have reported record numbers of COVID-19-related hospitalizations. Investors are nervous that increasing cases will undermine efforts to restore the economy by relaxing lockdowns.
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