Key equity indices ended a volatile session with marginal losses on Friday. Barring metal stocks, selling pressure was broad based with banks, auto and pharma stocks losing the most. Global shares were upbeat on Friday as data showed China's industrial output bouncing back in April.
As per provisional closing, the barometer S&P BSE Sensex fell 25.16 points or 0.08% at 31,097.73. The Nifty 50 index lost 16.4 points or 0.15% at 9,129.40.
The Nifty opened higher at 9,182.40, but soon pared gains in early trade. The index hit an intraday low of 9050 in mid-morning trade. A recovery was seen in afternoon session tracking positive sentiment from European markets. The Nifty bounced back and hit the day's high of 9,182.40 in mid-afternoon trade. The index closed below 9150 level due to selling in late trade.
In the broader market, the S&P BSE Mid-Cap index fell 0.31% while the S&P BSE Small-Cap index declined 0.16%.
The market breadth was negative. On the BSE, 1086 shares rose and 1229 shares fell. A total of 178 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.
Buzzing Index:
The Nifty Bank index declined 1.16% to 18,847, losing for second consecutive trading session. The index has lost 4% in two days.
Federal Bank (down 3.41%), Bandhan Bank (down 3.26%), Axis Bank (down 3.11%), RBL Bank (down 2.78%), IndusInd Bank (down 2.08%) and ICICI Bank (down 1.31%) were top losers in private bank space.
Bank of Baroda (down 3.36%), Canara Bank (down 2.95%), Punjab National Bank (down 1.71%), SBI (down 1.01%), Bank of India (down 0.89%) and UCO Bank (down 0.85%) were top losers in PSU bank segment.
Q4 Results Today:
Cipla (up 0.1%), IIFL Securities (up 3.67%), Crompton Greaves Consumer (down 0.29%), L&T Finance Holdings (down 1.29%), L&T Techonology Services (down 4.03%), Nippon Life India (down 0.45%), Mahindra & Mahindra Finance (up 0.3%) and Tasty Bite Eatables (down 1.6%) are some of the companies that will announce their quarterly results today.
Earnings Impact:
Biocon fell 1.15% after consolidated net profit declined 42.3% to Rs 123.40 crore on a 3.4% rise in net sales to Rs 1581 crore in Q4 March 2020 over Q4 March 2019. Consolidated EBITDA stood at Rs 382 crore in Q4 March 2020, declining 11% from Rs 431 crore in the same period last year. EBITDA margin slipped to 23% in Q4 March 2020 from 28% reported in Q4 March 2019.
Manappuram Finance rose 2.85% after net profit rose 43.68% to Rs 394.97 crore on 38.72% increase in total income to Rs 1,618.15 crore in Q4 March 2020 over Q4 March 2019. Profit before tax stood at Rs 534.07 crore in Q4 March 2020, up by 30.4% from Rs 409.41 crore in Q4 March 2019. Net interest income rose 33.3% to 1024.52 crore during the period under review. The company's consolidated assets under management (AUM) rose 29.8% to Rs 25,225 crore in FY20 from Rs 19,438 crore in FY19.
Tata Consumer Products fell 2.08% after consolidated group net loss stood at Rs 122 crore in Q4 March 2020 as compared to a net profit of Rs 36 crore in Q4 March 2019. The company reported exceptional loss of Rs 264 crore during the quarter. Higher exceptional items mainly includes costs related to merger of India foods business and non-cash impairment loss on goodwill relating to the business in Australia and tea business in the US. The accounting impairment has been recognised due to a combination of factors like COVID related impact on specific out of home business segments, changes to discount rates due to market conditions and revision in business plan sensitivities.
Mahindra Lifespace Developers declined 0.9% after reporting consolidated net loss of Rs 223.9 crore in Q4 March 2020 compared with net profit of Rs 31.27 posted in Q4 March 2019. Net sales dropped 56.7% to Rs 101.42 crore in Q4 March 2020 from Rs 234.27 crore posted in Q4 March 2019. The realtor reported a pre-tax loss of Rs 229.45 crore in Q4 March 2020 over a pre-tax profit of RS 35.65 crore in Q4 March 2019. The company reported an exceptional loss of Rs 134 crore. Mahindra Homes (MHPL), a joint venture of the company, is executing residential projects at NCR and Bengaluru. The residential project in NCR is a joint development with the landowner.
Stocks in Spotlight:
Shares of two multiplex chain operators INOX Leisure and PVR fell over 4% each after INOX on Thursday expressed its disappointment over the decision of a production house to release their movie directly on an over-the-top (OTT) platform.
INOX, in a statement issued on Thursday (14 May 2020) said: "INOX would like to express extreme displeasure and disappointment on an announcement made by a production house to release their movie directly on an OTT platform by skipping the theatrical window run. The decision of production house to deviate from the globally prevalent content windowing practice is alarming and disconcerting." It added that the chain reserves all rights, including taking retributive measures against such 'fair weather friends.'
Alembic Pharmaceuticals rose 3.47% after the company said it received US drug regulator's final approval for doxycycline hyclate tablets USP, 100 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Vibra-Tabs, 100mg of Pfizer, Inc. This medication is used to treat a wide variety of bacterial infections, including those that cause acne. This medication is also used to prevent malaria. The drug has an estimated market size of $53 million for twelve months ending December 2019 according to IQVIA.
J. Kumar Infraprojects added 3.21% after the construction major declared that it has secured a contract for the construction of part design and construction of Andheri (East)-Dahisar (East) corridor of Mumbai Metro Rail Project of MMRDA. The disclosure was made during market hours today, 15 May 2020.
Global Markets:
European markets were trading higher while most Asian markets closed on a positive note as data released by China showed industrial output bounced back in April.
China's industrial output rose 3.9% in April from a year earlier, improving from a 1.1% fall in March, according to data released Friday by the country's National Bureau of Statistics. This marks the first expansion in the metric for this year from China.
The US equity market finished volatile session higher on Thursday, 14 May 2020, snapping a two-sessions losing streak, led by a resurgence for some of the recent beaten-down stocks.
The reversal for stocks came after the U.S. Labor Department released its weekly initial jobless claims report. Another 2.981 million Americans filed for unemployment benefits in the week ending May 9. The prior week's figure was revised higher to 3.18 million from the previously reported 3.17 million jobless claims.
However, market gains capped amid weak economic data and as of warning from the U.S. Federal Reserve's chairman for an extended period of weak economic growth. At closing bell, the Dow Jones Industrial Average rose 1.62%, to 23,625.34 while The S&P 500 added 1.15% to end at 2,852.50.
U.S. President Donald Trump on Thursday said he was disappointed with China over its failure to contain the coronavirus, and that the pandemic cast a pall over his U.S.-China trade deal. His comments stoked concerns about renewed U.S.-China trade tensions.
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