As per provisional closing, the barometer S&P BSE Sensex gained 232.24 points or 0.74% at 31,685.75. The Nifty 50 index gained 65.3 points or 0.71% at 9,270.40.
The Nifty opened with small gains, but soon hit the day's low in morning trade. The index bounced back and hit the day's high in mid-morning session on fresh buying support. The index turned rangebound during afternoon trade. It firmed up once again in the final hour of the session.
In the broader market, the S&P BSE Mid-Cap index rose 0.78% while the S&P BSE Small-Cap index gained 0.49%.
The market breadth was negative. On the BSE, 1092 shares rose and 1229 shares fell. A total of 147 shares were unchanged. In Nifty 50 index, 37 stocks advanced while 13 stocks declined.
Economy:
The IHS Markit India Services Business Activity Index posted 5.4 in April, an extreme decline from 49.3 in March, and indicative of the most severe contraction in services output since records began in December 2005. Activity fell severely as a result of the nationwide lockdown, leading businesses to shut down their operations as demand collapsed. The data released today, 6 May 2020.
Data released on Monday (4 May) showed that the IHS Markit India Manufacturing PMI slumped to 27.4 in April from 51.8 in March.
The Composite PMI Output Index, which measures combined services and manufacturing output, sank to a new record low in April. At 7.2, the index fell from 50.6 in March and was indicative of an unprecedented decline in private sector business activity. The downturn was severe across both sectors in April, although the contraction in services output was slightly stronger, HIS Markit said in a statement.
Meanwhile, India's unemployment rate climbed to 27.1% in the week ended 3 May and some 121.5 million Indians were out of jobs in April as India continues to be on a lockdown mode to prevent the spread of covid-19, showed data from the Centre for Monitoring of Indian Economy.
Buzzing Segment:
Shares of public sector oil marketing companies declined after the government on Tuesday hiked the excise duty on petrol and diesel by Rs 10 and Rs 13 respectively. Hindustan Petroleum (down 5.66%), Bharat Petroleum Corporation (down 2.94%) and Indian Oil Corporation (down 2.73%) declined.
The Government notified that the changes will come into effect from 6 May 2020. Inspite of steep hike in excise duty the retail prices of petrol and diesel will remain unchanged as PSU OMCs will absorb the excise duty charges. Oil companies in India have not cut petrol and diesel prices since 16 March 2020, despite global crude oil prices falling to lowest in two decades.
Q4 Results Today:
JM Financial (up 10.42%) and Yes Bank (down 1.13%) are some of the companies that will announce their Q4 March 2020 result today.
Earnings Impact:
NIIT Technologies surged 19.31% after the IT solutions provider announced decent Q4 numbers. On a consolidated basis, net profit fell 7.9% to Rs 113.60 crore on a 3.3% increase in revenue to Rs 1109.3 crore in Q4 March 2020 over Q3 December 2019. Consolidated EBITDA stood at Rs 198.8 crore in Q4 March 2020, rising by 2.5% quarter on quarter (QoQ) from Rs 194 crore reported in Q3 December 2019. EBITDA margin dropped to 17.9% in Q4 March 2020 from 18.1% in Q3 December 2019.
Adani Ports and Special Economic Zone added 2.3%. The company's consolidated net profit slumped 74.11% to Rs 340.21 crore on a 5.23% decline in net net sales to Rs 2,921.19 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax dropped 83.78% to Rs 256.73 crore in Q4 March 2020 as against Rs 1,583.39 crore in Q4 March 2019. The result was declared after market hours yesterday, 5 May 2020.
Adani Enterprises fell 1.62% after the company's consolidated net profit fell 78.44% to Rs 61 crore in Q4 March 2020 from Rs 283 crore in Q4 March 2019. Total income during the quarter increased 2% to Rs 13,698 crore as compared to Rs 13,473 crore in the corresponding quarter in the previous year. EBIDTA declined 31.38% to Rs 647 crore from Rs 943 crore in Q4 FY19.
Persistent Systems jumped 7.87%. The IT company's consolidated net profit fell 4.7% to Rs 83.82 crore on a 0.4% increase in revenue to Rs 926.3 crore in Q4 March 2020 over Q3 December 2019. Consolidated EBITDA stood at Rs 127.6 crore in Q4 March 2020, rising by 3.4% quarter on quarter (QoQ). The company said it has 72 active clients as of 31 March, which includes 20 large clients above $3 million. Attrition rate for Q4 March 2020 stood at 14.3% against 16.7% reported last year in the same period.
Astec Lifesciences was locked in an upper circuit of 20% at Rs 519.75 after consolidated net profit jumped 145% to Rs 31.18 crore 35% rise in net sales to Rs 180.57 crore in Q4 March 2020 over Q4 March 2019. Consolidated profit before tax (PBT) surged 96% to Rs 39.63 crore in Q4 March 2020 over Q4 March 2019. The board of the company recommended a final dividend of Rs 1.5 per equity share.
Stocks in Spotlight:
Dr Reddy's Laboratories rose 0.81% on introducing Desmopressin Acetate Injection USP, 4 mcg/mL single-dose ampules in the U.S. market after the approval of the United States Food & Drug Administration (USFDA).
Alembic Pharmaceuticals rose 3.13% after the company said its joint venture, Aleor Dermaceuticals, received establishment inspection report (EIR) for its formulation facility at Karkhadi in Gujarat.
Global Markets:
European markets were mixed while Asian stocks closed with minor gains as investors weigh opening up of economies from the lockdown with caution. Markets in Japan and Thailand were closed on Wednesday.
In US, stocks ended slightly higher Tuesday for a second straight day, but finished well off session highs, as investors watched business restrictions begin to ease in the U.S. and Europe and progress toward an early vaccine to prevent the further spread of the COVID-19 pandemic.
The US economy could start to recover in the second half of the year after what is shaping up to be the worst recession in decades, but growth is likely to be slow and uneven, several top Federal Reserve policymakers indicated on Tuesday.
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