Domestic equity benchmarks ended the session with strong gains on Monday. IT, auto and metal shares rallied while PSU banks and FMCG shares declined.
The barometer index, the S&P BSE Sensex, spurted 617.14 points or 1.22% to 51,348.77. The Nifty 50 index climbed 191.55 points or 1.28% to 15,115.80. Both the indices attained record closing high levels. The indices have surged about 10.9% in six consecutive sessions.
The Sensex hit a record high of 51,523.38 and the Nifty hit a record high of 15,159.90 in afternoon trade.
Infosys (up 2.52%), ICICI Bank (up 2.43%), TCS (up 1.81%) and Reliance Industries (up 1.43%) were major market movers.
The broader market outperformed the benchmarks. The BSE Mid-Cap index rose 1.50% and the BSE Small-Cap index gained 1.53%.
Buyers outnumbered sellers. On the BSE, 1,721 shares rose and 1,313 shares fell. A total of 193 shares were unchanged.
Domestic shares were boosted by positive global cues. The rise in global risk-assets was induced by improving COVID-19 trends and statement from treasury secretary Janet Yellen, pushing for a stimulus bill. The comments from the treasury secretary came after weaker-than-expected U.S. jobs data on Friday highlighted the case for further stimulus.
COVID-19:
Total COVID-19 confirmed cases worldwide stood at 10,61,61,687 with 23,17,211 deaths. India reported 1,48,609 active cases of COVID-19 infection and 1,55,080 deaths while 1,05,34,505 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Glacier Burst in Uttarakhand:
A glacier broke off at Joshimath in Uttarakhand's Chamoli district on Sunday, leading to a massive flood in the Dhauli Ganga river and causing large-scale devastation in the upper reaches of the ecologically fragile Himalayas. Homes along the way were swept away as the waters rushed down the mountainsides in a raging torrent. There were fears of damage in human settlements downstream. Many villages were evacuated and people taken to safer areas.
In a BSE filing made during market hours today, NTPC said that the avalanche in Uttarakhand has damaged a part of its under-construction hydropower project Tapovan Vishnugad (520 MW) in the region. While rescue operations are on, situation is being monitored continuously with the help of district administration and likely loss or damage caused is being assessed. Appropriate insurance cover is available for the loss/damage caused. Shares of NTPC added 0.70% at Rs 100.35.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.044% as compared with 6.071% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.97, compared with its close of 72.93 during the previous trading session.
In the commodities market, Brent crude for April 2021 settlement rose 69 cents at $60.03 a barrel. The contract rose 50 cents, or 0.85% to settle at $59.34 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Monday, although earnings and coronavirus developments remain in focus.
In US, the Nasdaq and S&P 500 hit all-time highs on Friday on stronger-than-expected corporate results in the fourth quarter.
The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow President Joe Biden's $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority. The package includes $1,400 stimulus checks, supplemental jobless benefits and COVID-19 vaccine and testing funds.
Meanwhile, U.S. President Joe Biden said his administration was prepared for extreme competition with China, though his approach would be different than his predecessor.
Treasury Secretary Yellen said that the U.S. can return to full employment in 2022 if it enacts a robust enough relief package. Investors are taking comfort from the continued rollout of vaccines and data suggesting a declining trend in infections in countries like the US and Germany.
Buzzing Indian Segment:
The Nifty Auto index rose 3.14% to 11,061.15. The index declined 1.32% on Friday.
M&M (up 7.36%), Tata Motors (up 6.41%), Ashok Leyland (up 3.27%), TVS Motor (up 1.89%), Hero MotoCorp (up 1.65%) and Eicher Motors (up 1.29%) advanced.
Maruti Suzuki India rose 1.01%. The car major said its total production declined by 10.12% to 160,975 units in January 2021 from 179,103 units produced in January 2020.
Earnings Impact:
Britannia Industries fell 1.93%. On a consolidated basis, Britannia reported 22.3% rise in net profit to Rs 455.75 crore on 5.8% increase in net sales to Rs 3106.10 crore in Q3 FY21 over Q3 FY20.
Divis Laboratories fell 1%. On a consolidated basis, the pharmaceutical company reported 31.1% jump in net profit to Rs 470.62 crore on a 21.9% rise in net sales to Rs 1,701.44 crore in Q3 FY21 over Q3 FY20. The company reported a forex gain of Rs 2.53 crore in the quarter ended December 2020 as against a forex gain of Rs 17.96 crore in the quarter ended December 2019.
VRL Logistics surged 9.71% to Rs 224.80 after the company's board approved a proposal to buyback shares at maximum price of Rs 300 each. The aggregate consideration of the buyback shall not exceed Rs 60 crore.
Further, VRL Logistics reported 54% jump in net profit to Rs 39.74 crore on a 1.1% rise in net sales to Rs 563.42 crore in Q3 FY21 over Q3 FY20.
Punjab National Bank (PNB) dropped 5.24%. The public sector bank posted a net profit of Rs 506.03 crore in Q3 FY21 compared with net loss of Rs 492.28 crore in Q3 FY20. The bank's total income grew by 45.9% to Rs 23,298.53 crore in Q3 FY21 as against Rs 15,967.49 crore in Q3 FY20. Net Interest Income (NII) for Q3 FY21 grew by 28% to Rs 8,313 crore in Q3 FY21 over Q3 FY20. Global Net interest margin improved to 3.09% in Q3 FY21 from 2.49% in Q3 FY20.
On the asset quality front, the ratio of gross NPAs (GNPA) to gross advances stood at 12.99% as on 31 December 2020 as against 13.43% as on 30 September 2020 and 16.3% as on 31 December 2019. The ratio of net NPAs (NNPA) to net advances stood at 4.03% as on 31 December 2020 as against 4.75% as on 30 September 2020 and 7.18% as on 31 December 2019. On proforma basis, GNPA stood at 14.71% and NNPA stood at 5.65%. PNB reported a provision coverage ratio of 85.16% for the quarter ended December 2020.
Narayana Hrudayalaya fell 3.77%. On a consolidated basis, the company's net profit jumped 30% to Rs 40.84 crore on a 4.4% decline in net sales at Rs 750.36 crore in Q3 December 2020 over Q3 December 2019. As on 31 December 2020, the consolidated net debt was Rs 532.60 crore representing a net debt to equity ratio of 0.51 (out of which, debt worth $42.7 million is foreign currency denominated).
Pfizer lost 0.52%. The drug company's net profit rose 1.6% to Rs 141.24 crore in Q3 FY21 from Rs 139.06 crore recorded in Q3 FY20. The drug major's net sales grew by 10.3% to Rs 593.49 crore in Q3 FY21 from Rs 538.18 crore in Q3 FY20.
Glaxosmithkline Pharmaceuticals gained 1.91%. The company reported consolidated net profit at Rs 156.51 crore in Q3 December 2020 compared with net loss of Rs 661.16 crore in Q3 December 2019. On a consolidated basis, net sales jumped 10.1% to Rs 857.20 crore in Q3 FY21 from Rs 778.59 crore in Q3 FY20.
Stocks in Spotlight:
Bharat Petroleum Corporation (BPCL) advanced 1.17%, ahead of Q3 earnings today.
Hindustan Aeronautics (HAL) added 2.04%. The company agreed to expand its partnership with Rolls Royce in India for collaboration in two key areas: expanding the supply chain for both Civil and Defence Aerospace and establishing an authorized maintenance centre for Adour Mk871 engines to support Rolls-Royce's global customers.
Separately, HAL informed that the company and Safran Aircraft Engines, France signed an MoU to explore opportunities for strategic business cooperation that leverage the complementary talents and capabilities of the both parties and support development of a robust ecosystem for aero-engines in India, consistent with the goals of the Government of India's Make in India initiative.
Adani Enterprises jumped 5.55%. The company said its arm has completed acquisition of 23.5% equity stake in Mumbai International Airport (MIAL) from ACSA Global and Bid Services Division (Mauritius) for Rs 1,685.25 crore.
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